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A tech company in Dubai is making the headlines. The company in question overcame a major milestone by landing its biggest client yet. However, just six weeks down, they were found non-compliant with the United Arab Emirates work visa or employment visa requirements. As a result, the company had to face the ordeal of explaining this predicament to frustrated new hires while facing government penalties that wiped out their first-quarter profits. The culprit? A single checkbox missed on an Emiratisation compliance form.
Cases like this unfold daily across the UAE’s bustling business landscape. Companies arrive drawn by zero corporate tax rates, world-class infrastructure, and access to global markets spanning three continents. What catches many off guard is discovering that building a team in the Emirates requires navigating one of the world’s most detailed employment frameworks.
Overlooking a compliance requirement, could means facing penalties, starting as high as AED 96,000 annually. This guide to employing staff breaks down everything needed to hire employees legally and efficiently in the UAE. From understanding visa types to meeting government quotas, each section provides practical steps that prevent costly mistakes while building strong teams.
Employment in the UAE is governed by Federal Decree Law No. 33 of 2021, also known as the UAE Labour Law. This law applies to all private sector employees, whether they are UAE nationals or expatriates. It replaced the previous labour law and introduced updated rules to modernize workplace practices.
The Ministry of Human Resources and Emiratisation (MOHRE) is the primary authority responsible for overseeing employment matters, including United Arab Emirates work visas and permits. Employers must follow the law carefully, as failing to do so can lead to strict penalties and business disruptions.
The Labour Law covers key areas, including employment contracts, working hours, benefits, termination rules, and dispute resolution. In simple terms, it provides the framework for the entire employment relationship from the time of hiring until the end of service.
Recruitment and Talent Acquisition
Hiring in the UAE begins long before paperwork. To get started, employers should:
Working in UAE comes with unique contractual and visa requirements, so having clear recruitment procedures helps streamline the hiring process for both local and foreign employees.
In the UAE, every job must be backed by a written employment contract. Two copies are issued, one for the employer and one for the employee. These contracts must follow the requirements set out in the UAE Labour Law.
All employees need written contracts. No exceptions. The UAE requires specific details in every employment agreement, which is critical for anyone legally.
Every contract must include:
Contract duration rules
Here’s what changed in 2022: All contracts are now only fixed-term. The maximum length of a contract is three years. Companies can renew contracts, and renewals count toward total service time.
In February 2023, all existing contracts had to convert to this fixed-term system. This gives both sides more flexibility than the old unlimited contracts and jobs in United Arab Emirates for foreigners.
Probation period basics
Probation periods can last up to six months. But there’s a catch – either side needs to give 14 days’ notice before ending the contract during probation.
Exception: If someone joins another company in the UAE during their probation, they must give 30 days’ notice instead.
This protects everyone involved. Companies get time to evaluate new hires. Employees get time to assess their new role. The notice periods prevent sudden disruptions.
Contract language
Contracts must be in Arabic. English translations are highly recommended for clarity. Both the employer and employee get copies. Keep these documents safe – they’re needed for various processes throughout employment.
Standard working hours
Flexible work arrangements
The UAE law requires specific benefits for all employees. These aren’t optional extras – they’re legal requirements that every company must provide.
| Leave Type | Benefits/Entitlement | Conditions / Notes |
|---|---|---|
| Maternity Leave | • 60 days in total • First 45 days with full pay • Next 15 days with half pay | Must complete one year of service to qualify |
| Paternity Leave | • 5 days of paid leave | Applies to all private sector male employees on the birth of a child |
| Annual Leave | • Less than 5 years: 30 days per year • More than 5 years: 30 days plus 1 extra day for each additional year • Maximum 60 days per year | Leave accumulates during the year and can be taken once earned |
| Sick Leave | • Up to 90 days in a year • First 15 days with full pay • Next 30 days with half pay • Final 45 days unpaid | Requires a medical certificate from an approved doctor |
| Public Holidays and Special Leave | • Paid leave for national holidays • Religious holidays such as Eid • Hajj leave for Muslim employees • Bereavement leave for close family | Holiday dates vary yearly based on the Islamic lunar calendar (10 to 13 days) |
| End-of-Service Gratuity | • Less than 5 years: 21 days of basic salary per year • More than 5 years: 30 days of basic salary for each additional year • Payment due within 14 days after leaving employment | Calculated only on the last basic salary (not allowances |
The visa and work permit is one of the most complicated parts of employing the staff in the UAE, especially in the case of expatriate employees that make quite a substantial part of the workforce. Employers must plan ahead to avoid delays when hiring staff, especially for jobs in United Arab Emirates for foreigners.
Entry permit and work visa process
Before arriving in the UAE on a standard United Arab Emirates work visa, a foreign national must accept a job offer in writing and obtain an entry permit. The entry permit will enable them to enter the UAE and make the process of obtaining their work visa and residence visa.
The average amount of time spent on the work permit process is 2-4 weeks, based on the category of visa. Employers ought to ensure that they plan in advance and create enough time to handle employees working in UAE to prevent employee onboarding delays.
There are three main categories of the work permit:
Specialized Work Permits
The UAE government has implemented significant improvements to simplify the work permit application process.
The Work Bundle improves the user experience by consolidating 5 platforms into a single unified platform. It has streamlined processes by reducing 8 services into 1 integrated experience. The process has been reduced from 15 steps and 16 documents to just 5 steps and five documents.
This simplified model saves employers in terms of administration as well as speeding up the recruitment process. The consolidated platform allows employers to coordinate various employee visa processing tasks using a single interface which enhances efficiency and minimizes processing time.
Medical examination conditions
The visa application will also require employees to undergo a medical check in order to establish whether they are not carrying contagious diseases. This is necessary to all expatriate employees and is to be carried out in accredited healthcare centres within the UAE. The medical examination typically includes tests for:
Employers should inform prospective employees about this requirement and factor the examination timeline into their hiring schedule.
The UAE offers various visa categories that cater to different employment situations and business needs, each with specific requirements and processing procedures.
Standard employment visas
The most common option for expatriate hires. It is employer sponsored and has a term of 2-3 years with renewal. It normally costs between AED 3,000-5,000 per employee (visa, Emirates ID, medical, typing centre).
This is a powerful talent attraction tool as employees who have adequate salaries are allowed to sponsor their immediate family members.
Green visa
A self-sponsored visa option for skilled professionals, freelancers, and investors. It generally requires higher income or educational qualifications but gives employees more independence, while reducing employer obligations.
Golden visa
Focused on investors, entrepreneurs, outstanding talents, and senior professionals. Its 10-year 10 years residence visa is a game changer in attracting the best talents, as it is family sponsored, and offers more career freedom.
Freelance permit
Allows individuals to work with multiple clients across approved industries such as consulting, media, design, and tech. This is especially useful for businesses engaging specialists on flexible terms.
Remote work / virtual work visa
Introduced for global professionals who work for companies abroad but want to live in the UAE. It’s valid for 1 year and usually requires proof of foreign employment and a minimum monthly income.
Mission visa
Granted to short-term assignments or project-based positions, often signed to a 90-day limit with extensions. Best suited to trial hires, consultants, or urgent project requirements in the free zones or some of the mainland sectors.
Remember, Proper management of these visas is key to legal compliance and smooth onboarding for anyone working in UAE.
The UAE government is highly emphasizing on the involvement of Emirati nationals in the private sector. This is what is called Emiratisation policy which mandates businesses to employ and retain a specific proportion of the UAE nationals.
Who is affected?
What if you don’t comply?
Non-compliance can be costly. AED 96,000 per missing Emirati worker will become the minimum penalty meted against businesses in the year 2025, with a stiffer penalty to be paid in the subsequent years.
What are the benefits of compliance?
Meeting Emiratisation quotas isn’t just about avoiding penalties. Companies that comply gain access to government incentives, such as:
One of the first decisions employers must make in the UAE is whether to hire under a mainland license or within a free zone. Each option has its own rules, costs, and level of flexibility.
| Aspect | Mainland (MOHRE) | Free Zones |
|---|---|---|
| Authority | Regulated by the Ministry of Human Resources and Emiratisation (MOHRE) | Governed by independent free zone authorities (e.g., DIFC, DMCC, JAFZA) |
| Visa Sponsorship | Work visas issued and managed through MOHRE | Work visas issued and managed by the free zone authority |
| Hiring Flexibility | Access to a broader talent pool across the UAE | Hiring usually restricted to within the free zone unless multiple visas are obtained |
| Costs | Generally, slightly lower | Often higher, but processes are faster and more streamlined |
Both structures are extensively utilized. Mainland recruitment provides companies with access to more markets, whereas free zones are desirable to businesses that need to establish themselves rapidly, full foreign ownership, and ease of management.
Wage Protection System or WPS is one of the most important aspects of UAE labour compliance. It ensures that employees working in UAE are paid right and within the right time and also helps businesses stay out of conflict.
WPS Requirements
All employers in UAE are expected to be enlisted with the WPS. The salaries must be paid within seven working days of the agreed payday, with authorization of the banks or other financial institutions. In case of delayed payments, penalties will be automatic, and the company has the risk of being restricted on work permits.
The system captures the entire details of the basic pay, allowances, overtime, and deductions when the salaries are processed. This data is relayed straight to the Ministry of Human Resources and Emiratisation (MOHRE), establishing an open account of each payment.
Moreover, the employers should have bank guarantees which are normally 3000-5000 per work permit. Such guarantees are the form of security to ensure that the wages of employees are never underpaid. The companies are not able to acquire new and renew existing work permits without them.
Why compliance matters?
Following WPS rules helps businesses keep their operations running smoothly. Companies that pay salaries on time enjoy faster processing for work permits, renewals, and transfers, which makes it easier to expand their workforce.
On the other hand, failing to comply has serious consequences. Non-compliant companies can face work permit freezes, which means they cannot hire or renew visas. Repeated violations may even lead to blacklisting, shutting down future business opportunities in the UAE.
Overall, the WPS has strengthened trust in the employment system by reducing salary disputes and ensuring employees feel secure about getting paid. For employers, compliance is not just a legal requirement but also a way to maintain stability and a positive reputation.
2025 Update: In addition to WPS enforcement, employers face higher compliance penalties. Non-Emiratisation fines rose to AED 108,000 in 2025, and mandatory health insurance is now strictly enforced for all employees and dependents. Employers must also ensure salaries are processed within 7 days under the WPS to avoid permit freezes or blacklisting.
Minimum wage in UAE
Unlike many countries, the UAE does not have a universal statutory minimum wage for all workers. Instead, wage guidelines are sector-specific, and salaries must be sufficient to cover workers’ basic needs.
However, new rules require Emirati graduates in the private sector to be paid at least AED 5,000 per month, reflecting the government’s push to encourage local employment. Employers should also take note that wages must be aligned with MOHRE’s Wage Protection System (WPS) requirements to avoid penalties.
What are the termination and exit procedures for employees in the UAE?
When an employee leaves a company in the UAE, certain legal steps must be followed to ensure the process is smooth and compliant with labour law.
Notice Period
The employment contract will usually set a notice period between 30 and 90 days. During this time, the employee continues to work and receive salary. Both parties may agree to shorten or waive the notice if needed.
Final Settlement
Employers must clear all pending payments within 14 days of the employee’s last working day. This includes:
Visa cancellation and repatriation
For expatriate workers, the employer must cancel the residence visa and provide a one-way ticket to the employee’s home country, unless the employee chooses to remain in the UAE under a new sponsor.
Importance of Compliance
Delays in settlement or failure to cancel visas properly can lead to disputes and penalties. Following the correct process ensures a lawful, fair, and professional closure of the employment relationship.
Hiring employees in the UAE requires careful planning, complete documentation, and adherence to legal processes to ensure compliance and a smooth onboarding experience. A structured approach minimizes delays, prevents penalties, and sets the foundation for a productive employment relationship.
Essential documentation checklist
Employer documents:
Employee documents:
Steps employers should follow during hiring
Step 1: Contract signing & labour approval
Once the job offer is accepted, the employment contract is signed. Employers submit the labour market test documents (if required) to MOHRE and prepare company documentation for work permit applications. This ensures legal approval to hire foreign workers.
Step 2: Entry permit application
Employers apply for the employee’s entry permit through MOHRE or the Work Bundle portal, submitting all required documents and paying applicable fees. Standard processing usually takes a few working days.
Step 3: Employee arrival & medical examination
After entering the UAE on an entry permit, the employee undergoes a medical fitness test at an approved facility. The results are required to process the residence visa, ensuring the employee meets UAE health standards.
Step 4: Residence visa & Emirates ID
With a cleared medical, the employee’s residence visa is stamped on their passport. Biometrics are submitted to issue the Emirates ID, which serves as official proof of residency and identity.
Step 5: Work permit & onboarding
The employer finalises MOHRE work permit issuance and registers the employee under the Wage Protection System (WPS) for payroll and benefits. Onboarding includes orientation, IT setup, policy briefings, and workspace arrangements to integrate the employee smoothly.
Ongoing compliance
Employers track visa, Emirates ID, and work permit expiry dates, maintain Arabic and English copies of contracts, and schedule regular salary runs, health insurance renewals, and leave entitlements to stay fully compliant.
Understanding the complete financial picture of hiring enables better budgeting and competitive positioning while avoiding unexpected expenses that can impact business profitability.
| Category | Cost Components | Typical Range (AED) | Notes |
|---|---|---|---|
| Direct Employment Costs | Salary Package (Basic salary + allowances) • Housing allowance: 25-40% of basic • Transport allowance: 500-1,500/month • Annual flight ticket (expatriates) | Varies (Total package often 50-80% higher than basic salary) | Major share of overall hiring cost |
| Visa & Setup • Work permit: 1,000 • Emirates ID: 370 • Medical test: 320 • Typing services: 300 • Status change: 500-1,000 | 3,000-6,000 (one-time) | Paid upfront per new employee | |
| Health Insurance • Basic plan: 500-1,500 per year/person • Comprehensive plan: 3,000-8,000 per year/person • Family coverage: multiple of dependents | 500-8,000+ annually | Mandatory under UAE law | |
| Ongoing Compliance Expenses | Visa Renewal & Medicals | 1,500-2,500 annually/employee | Recurring yearly |
| End-of-Service Gratuity | Example: 5,600 annually (for AED 8,000 basic) | Liability accrues during service | |
| Recruitment Costs • Agency fees, ads, interviews, onboarding | 3,000-15,000 (per hire) | Higher for senior roles | |
| Hidden & Administrative Costs | Bank Guarantee | 3-6 months of salaries | Locks up working capital |
| Administrative Processing | Internal HR/legal time or outsourcing | Variable | |
| Training & Setup • Orientation, workspace, IT, equipment • Ramp-up period | Variable (role-dependent) | Impacts short-term productivity |
In the first half of 2025 alone, the UAE Ministry of Human Resources and Emiratisation (MoHRE) imposed over AED 34.5 million in fines on more than 1,300 companies for violations such as fake hiring and inactive business practices. This underscores the UAE’s stringent enforcement of labour laws and the critical importance of compliance for businesses operating in the region.
Adhering to proper hiring procedures not only mitigates legal risks but also enhances operational efficiency and employee satisfaction. Companies that invest in robust compliance frameworks position themselves as preferred employers, attracting top talent and maintaining a competitive edge in the market.
As the UAE continues to evolve its labour regulations, staying informed and compliant is essential for long-term success. By following the guidelines outlined in this guide to employing staff, businesses can navigate the complexities of the UAE employment landscape with confidence and integrity.
