Planning to hire employees in the UAE? Here’s a quick guide

When you hire employees in the UAE, you can tap into a growing labor market. 2025 recorded a rise in their workforce and strengthened the UAE’s stance as a global talent hub. 

The hiring process in the UAE, however, has a lot of moving parts. Registering with the Ministry of Human Resources and Emiratisation (MoHRE) is just the first step. 

From there, you have visas, Emiratisation quotas, employment contracts, and labour law requirements to work through. Missing any of these can result in serious penalties.

That’s where an Employer of Record (EOR) like Payoneer Workforce Management can help. An EOR offers assistance with compliance, payroll, and local regulations on your behalf, so you can focus on running your business.

In this guide, we break down the specifics of what you need to hire in the UAE, including smart talent engagement channels, appropriate regulations, and the benefits of tapping into the Emirati labor market.

How to hire in the UAE

As an internationally sourcing employer, you can take several pathways to engage talent in the UAE, such as:

1) Setting up a legal entity

You can set up a legal entity or subsidiaries in either the mainland or in the Free Trade Zones, retaining ownership of your company. However, this requires a lot of time, typically a few months to a year, and involves extended administrative overhead. 

Partnering with an EOR offers a quicker and compliant way to engage Emirati talent.

2) Employer of Record (EOR)

An EOR can help you here by engaging Emirati talent on your behalf. 

An Employer of Record (EOR) in the United Arab Emirates is a third‑party entity that legally employs workers and allows businesses to operate in the UAE and engage local talent without setting up a legal entity in the country.

The EOR manages key employment responsibilities in the UAE, including employment contracts, payroll, benefits, taxes, and compliance requirements. Partnering with a reliable EOR streamlines the process of engaging talent in the UAE and supports adherence to local regulations.

3) Engage Independent Contractors (UAE)

Some businesses in the UAE choose to work with independent contractors for short‑term or project‑based work. However, it’s important to follow local rules that distinguish contractors from employees. 

Misclassifying a worker as a contractor when they function as an employee can result in compliance issues and potential penalties.

To minimize the risk of misclassification, companies can rely on contractor management tools or structured onboarding processes so that contractors are engaged in a compliant manner.

Where to find employees in the UAE

With an established recruitment method in the UAE, you now need to find the best source of talent.

There are multiple channels through which you can onboard employees in the UAE, including:

1. Job boards

UAE hosts various job-hunting platforms, including conventional and region-specific boards:

• Nafis
• Indeed UAE
• Bayt.com
• GulfTalent

Besides, LinkedIn is a popular platform in the UAE, among recruiters and candidates. It is the perfect medium for recruiters to directly look for ideal profiles, post targeted job ads, and fill medium-to-senior level roles. 

2. Through local recruitment agencies

Hiring local agencies or recruiters gives you an inside edge with information on fresh candidates or recent college graduates. Other than that, you can also consult local firms like Charterhouse or Nadia Global.

These are organizations that oversee the end-to-end recruitment process and maintain extensive databases of local talent that fit well in respective industries.

But you need to keep in mind that recruitment in the UAE is a federally regulated activity.

Before partnering with any agency, you should perform a background check and look for a Mediation & Brokerage license issued by the MoHRE.

If it’s available, an agency can locally recruit on your behalf, and if not, you may have to consider other options.

3. EOR support

Working with a local EOR like Payoneer Workforce Management helps you complete the onboarding process fast with compliance support. While you focus on identifying suitable candidates, an EOR acts as the legal employer in the UAE. They assist with payroll, benefits, termination, and taxation. 

Employers typically prefer this route to avoid setting up legal entities and lower administrative burden or compliance risks, which may lead to heavy penalties.

Onboarding employees in the UAE

Once you have selected a candidate for a job role, the onboarding process is a bit lengthy and is executed in 5 phases:

1. Compliance & documentation

• Collect the candidate’s Emirates ID, Passport, family Book (Khulasat Al Qaid), and Attested Degree in case of a “Skilled” job role.
• Check for a Nafis registration. 
• Issue a standard job offer letter from the company’s end, stating the salary and benefits.

2. The MoHRE legal contract

• The UAE government solely recognizes a specific, bilingual contract for Emiratis.
• Log in to the MoHRE Smart App (accessible outside the UAE) and generate a UAE National Employment Contract. 
• Ask the candidate to digitally sign the contract with their UAE Pass. It’s the only legal way to onboard an Emirati citizen.
• Once signed, MoHRE issues a UAE National Work Permit.

3. Nafis benefit linking

• Once you have the legal contract, link the new hire to your company profile on the Nafis portal.

4. Mandatory pension registration

• Register the employee with the GPSSA (for Dubai/Sharjah/Northern Emirates) or with the Abu Dhabi Pension Fund.
• You need to pay 15% of the contribution salary to the pension fund, while the employee pays 5%.

5. Financial & insurance integration

• Add the employee to your Wages Protection System (WPS) file. You need to make sure that all salaries are paid through a UAE bank.
• Health Insurance provision is mandatory, especially in Dubai and Abu Dhabi.  You, as an employer, are legally required to provide coverage or a private supplement.

While the entire process is tedious and extensive, every step is critical if you want to reduce fines. 

An EOR partner like Payoneer Workforce Management can aid by assisting with this workflow while you take care of company tasks. This way, the process is fast and flexible.

Key employment laws and requirements

Employment in the UAE is primarily regulated by Federal Decree by Law No. (33) of 2021- Regulating Labor Relations. You need to be very careful of the laws that govern recruitment and protect employees in the UAE, to reduce penalties. 

Key aspects of the employment regulations in the UAE include:

Employment contracts 

Typically, all employees must have a written, fixed-term contract registered with the Ministry of Human Resources and Emiratisation (MOHRE). Probation periods are capped at six months.

Here are the key pointers:

• Employer and employee details
• Contract duration (fixed-term, max 3 years)
• Job title and description
• Salary and benefits
• Working hours and overtime
• Leave entitlements
• Probation period (up to 6 months)
• Termination conditions and notice period
• End-of-service gratuity
• Non-competition clause (up to 2 years)
• Language (Arabic and English)

Employee benefits

Employees working in the UAE are entitled to the following employee benefits: 

• Working hours: Article 17 defines standard hours as 9 hours per day or 45 hours per week. Working hours are reduced by 2 hours during Ramadan for everybody, regardless of religious affiliation. 
• Overtime: Overtime cannot exceed more than 2 hours per day and 144 hours every 3 weeks, as per Article 19 of the decree. On regular days, the overtime pay rate is 125% of the hourly pay, while for weekends and public holidays it is 150% of the hourly pay.

• Paid leave: The law defines 33 paid leaves for the employees.
  • Annual leave:
    • Minimum 30 calendar days for each year of service. 
    • 2 days per month while the service period is more than six months and less than a year.
  • Sick leave: 90 days, available after probation period, with 15 days of 100% pay, 30 days of 50% pay, 45 days with no pay.
  • Maternity/Parental leave: Paid maternity leave of 60 days and 5 paternity leave is provided, along with protection against dismissal for pregnancy.

• Gratuity: Article 51 defines end-of-service benefits for national and foreign full-time workers:
  • National: Benefits are decided based on the agency legislating pensions and social security in the respective state.
  • Foreign: Pay of 21 days for each year of the first five years of service, and pay of 30 days for each year beyond that.

Other than these, the decree also provides regulations for termination and notice period events, protection against discrimination and harassment in the workplace, and health and safety regulations that you need to follow as an employer. 

Tax obligations

The UAE government doesn’t require employees to pay any sort of income tax. The only mandatory deduction from payment comes from the contribution towards a pension fund. 

Termination and severance

In the UAE, employers can terminate employees, provided the reasons are valid and can be proven true. Possible conditions for termination include:

• Employee resignation
• Mutual consent from the employee and the employer
• Termination during probationary period
• Termination by the employer due to misconduct, performance issues, absence without leave, etc. 
• Contract expiry

Notice period in the UAE usually ranges from 14 to 90 days, as written in the contract. However, an employee can be terminated without notice in cases of gross misconduct or any other situation listed under Article 44 of the Labor Law Regulations of Federal Decree Law No. 33.

Employees in the UAE don’t receive severance pay either. They are, however, entitled to a pension if they are registered with the GPSSA.

Explore Payoneer Workforce Management in the UAE

If you’re expanding internationally, the UAE is a central hub for the MENA region. But setting up a legal entity to recruit in the UAE can be a hassle.

As an employer, you need to go through a lot of red tape, like permits, regulations, etc. 

Payoneer Workforce Management can help you manage these formalities by:

• Onboarding employees in the UAE, compliantly, without you requiring a local entity
• Guidance for navigating the local regulations and legal mandates
• Managing payroll and contractor payments seamlessly
• Handling benefits, timesheets, and more

Payoneer Workforce Management can help you manage your Emirati workforce without losing control over routine tasks, goals, and company workflows. 

Book a demo today and learn how you can expand your business internationally. 

FAQs

1. Do Emirati employees need to pay Income Tax?

No, the UAE government doesn’t mandate employees working in the UAE to pay income tax.

2. Is there a fixed minimum wage in the UAE?

No, the UAE does not have a national minimum wage. It may vary based on region, role and employer.

3. How can companies hire employees in the UAE?

Companies can hire employees in the UAE by establishing a local legal entity or by using an Employer of Record (EOR). The EOR becomes the legal employer and manages onboarding, employment contracts, payroll, work permits, and compliance while allowing businesses to operate without setting up their own entity

4. What are the key employment laws in the UAE?

UAE employment laws require a MOHRE‑approved employment contract, medical fitness checks, and proper visa sponsorship. All employment must follow MOHRE standards, including clear job titles, salary details, notice periods, and termination rules. Employers must also ensure compliance with work permits, residence visas, and updated labor regulations.