Employer of Record (EOR) in Dubai

Employment Laws and Regulations in Dubai

Employment Contracts

Employment in Dubai’s private sector is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which took effect on 2 February 2022 and is administered by the Ministry of Human Resources and Emiratisation (MOHRE). All mainland Dubai contracts must be in writing, use the MOHRE standard template, and be registered electronically through MOHRE’s online portal before the employee starts work.

Since the 2022 reforms, all private-sector contracts are fixed-term. The initial cap was 3 years, but Cabinet Resolution No. 1 of 2022 and later amendments removed the explicit ceiling, allowing fixed-term contracts to be renewed by mutual agreement (UAE Legislation Portal). Arabic is the official language of record and prevails in any dispute, so bilingual Arabic-English contracts are standard. Part-time, temporary, flexible, and job-sharing arrangements are now explicitly recognised under Article 7.

Working Hours and Overtime

The standard private-sector workweek in Dubai is 48 hours, normally arranged as 8 hours per day over 6 days (Article 17 of Federal Decree-Law No. 33 of 2021). Working hours are reduced by 2 hours per day during the holy month of Ramadan for all employees, not just Muslims, with no reduction in pay. Friday afternoon is the weekly rest day for most of the private sector, and the federal government moved to a Saturday and Sunday weekend in 2022, with many private employers following suit.

Overtime is paid at 125% of the basic hourly wage for additional hours worked on a normal day and 150% for hours worked between 10 pm and 4 am or on the weekly rest day (Article 19). Total overtime cannot normally exceed 2 extra hours per day, and daily working time, including overtime, cannot exceed 12 hours. Senior managers and some supervisory roles are exempt from overtime rules under implementing regulations.

The table below maps every premium pay rate defined in the UAE Labour Law to the hours it applies to, the daily cap, and the practical edge cases that catch out payroll teams. It covers weekday overtime, night-shift work, weekly rest day assignments, public holidays, and the Ramadan reduction, with every rate taken directly from Articles 17 to 20 of Federal Decree-Law No. 33 of 2021.

Minimum Wage

Dubai has no statutory minimum wage for expatriate private-sector employees. Article 27 of Federal Decree-Law No. 33 of 2021 reserves the power for the Cabinet to set a minimum wage, but no Cabinet resolution has been issued as of 2026 (PwC Worldwide Tax Summaries: UAE). Emirati nationals have separate salary support thresholds under the NAFIS Emiratisation programme, but these apply to hiring incentives rather than a general wage floor. In practice, employers benchmark wages against MOHRE wage categories for visa purposes and the average salary in Dubai, with professional roles in Dubai typically starting well above the ranges used for entry-level visa categories.

Probation Period

The probation period in Dubai is capped at 6 months from the employee’s start date under Article 9 of Federal Decree-Law No. 33 of 2021, and it cannot be extended. During probation, the employer may terminate with 14 days’ written notice and the employee may resign with 14 days’ notice to leave the UAE or 30 days’ notice to join another UAE employer. If the employee moves to a new UAE employer during probation, the new employer reimburses the recruitment costs paid by the original sponsor unless otherwise agreed.

Leave Entitlements

Dubai’s statutory leave framework sits inside Articles 29 to 33 of Federal Decree-Law No. 33 of 2021 and covers annual, sick, maternity, parental, and several special leave categories. The rules apply to all private-sector employees on mainland Dubai contracts regardless of nationality.

Annual Leave

Employees in Dubai are entitled to 30 calendar days of paid annual leave after 1 year of continuous service, with employees between 6 and 12 months of service accruing 2 working days per month (Article 29). Leave pay is calculated on the employee’s basic salary plus the housing allowance if one is paid, and unused leave is paid out on termination. Employers can require up to half the leave balance to be taken within the leave year, and carryover is permitted only for the remainder.

Sick Leave

The annual sick leave entitlement under Article 31 is 90 days in total after the probation period, split as 15 days on full pay, the next 30 days on half pay, and the remaining 45 days unpaid, subject to a certified medical report. The employer is not required to pay sick leave during probation, and sick leave caused by wilful misconduct is not payable. The entitlement resets each calendar year.

Maternity Leave

Female employees in Dubai receive 60 days of maternity leave under Article 30, of which the first 45 days are paid at full salary and the following 15 days at half salary (UAE Government maternity leave guide). Up to 45 additional days of unpaid leave are available for medical complications certified by a doctor. Mothers of a child with a disability or serious illness receive an extra 30 days of fully paid leave, renewable once. Dismissal on grounds of pregnancy or maternity is prohibited, and nursing breaks of up to 1 hour per day apply for 6 months after the return to work.

Paternity Leave

Parents in Dubai are entitled to 5 working days of fully paid parental leave under Article 32, which can be taken at any time during the first 6 months after the child’s birth. The entitlement applies to both mothers and fathers, making the UAE one of the first Gulf countries to introduce a statutory parental leave benefit for fathers.

Other Statutory Leave

Federal Decree-Law No. 33 of 2021 also provides for several additional paid and unpaid leave categories for private-sector employees:

• Bereavement leave: 5 days on the death of a spouse and 3 days on the death of a parent, child, sibling, grandparent, or grandchild
• Study leave: 10 working days per year for UAE-citizen employees enrolled at an accredited UAE institution, after at least 2 years of service
• Hajj leave: up to 30 days of unpaid leave once during the period of service for Muslim employees
• Sabbatical leave: national service or study sabbaticals as set out in implementing regulations
• Public holiday leave: paid leave on all official UAE public holidays announced by the Cabinet

Statutory Employee Benefits

Mandatory employee benefits in Dubai revolve around health insurance, end-of-service gratuity, and a newer unemployment insurance scheme rather than the social security model common in Europe. Every employee working in Dubai must be covered by a health insurance policy that meets the Insurance System for Advancing Healthcare in Dubai standards, and the employer pays the full premium for the employee (ISAHD). Dependants must also be covered, typically by the sponsor of their residence visa.

End-of-service gratuity is the UAE equivalent of a pension for expatriates. Under Articles 51 and 52 of Federal Decree-Law No. 33 of 2021, an employee who completes at least 1 year of service receives 21 days of basic wage per year for the first 5 years and 30 days per year thereafter, capped at 2 years of basic wage in total. Pension contributions under the General Pension and Social Security Authority rules apply only to UAE and GCC nationals. Since October 2022, all employees also contribute to the federal Involuntary Loss of Employment (ILOE) insurance scheme, a low-cost policy that pays 60% of basic salary for up to 3 months if the employee is terminated for reasons other than resignation or disciplinary dismissal (ILOE scheme portal).

Recent Regulatory Updates 2026

The most material changes affecting Dubai hiring in 2025 and 2026 relate to Emiratisation, health insurance, and unemployment insurance. MOHRE continued its phased Emiratisation quota under Cabinet Resolution No. 18 of 2022, requiring private-sector establishments with 50 or more employees to increase the share of Emirati staff in skilled jobs by 2 percentage points per year, reaching a 10% target by the end of 2026 (MOHRE news centre). Non-compliant employers face fines of AED 96,000 per unfilled Emirati position per year.

Dubai health insurance rules tightened from 1 January 2025, when the ISAHD regime fully replaced the legacy Dubai Health Authority scheme. Employers must now provide coverage that includes emergency care, inpatient, outpatient, maternity, and prescription drugs, with penalties of AED 500 per employee per month of non-coverage. The ILOE scheme also reached full enforcement in 2024, with employees who failed to enrol by the original deadline subject to an AED 400 fine plus backdated subscription fees (ILOE scheme).

Work Permits and Visas in Dubai

Work Permit Requirements

Who Needs a Work Permit

All non-UAE nationals working in Dubai mainland need a MOHRE work permit and a residence visa sponsored by the employer before they can start employment. GCC nationals (Saudi Arabia, Kuwait, Bahrain, Oman, Qatar) are exempt from the work permit requirement under the Gulf Cooperation Council common market framework but still need a labour card and must be registered with MOHRE. UAE and GCC citizens employed in the private sector are also enrolled with the General Pension and Social Security Authority.

Eligibility and Required Documents

To qualify, the employer must hold a valid MOHRE establishment registration, be within its Emiratisation quota if applicable, and have no outstanding fines. The standard document bundle for the employee includes a passport valid for at least 6 months, a passport-sized photograph on a white background, a MOHRE-format employment contract, a medical fitness certificate from a government-approved clinic, and attested academic or professional qualifications for skilled categories. Emirates ID biometrics are captured in person at a GDRFA or ICP service centre.

Processing Time and Validity

MOHRE typically issues the initial work permit within 5 to 10 working days once the contract and documents are complete. For candidates outside the UAE, the entry permit, medical fitness test, biometrics, and residence visa stamping run in sequence and usually take another 2 to 3 weeks (UAE Government work permits guide). Standard employment visas are valid for 2 years, and the residence visa carries the same duration. Work permits for senior roles, self-sponsored professionals, and Golden Visa holders follow separate tracks.

Renewal Process

Renewals must be filed before the existing work permit and residence visa expire, and the employee can continue working during the renewal window provided the application is in progress. Renewal requires an updated medical fitness check, a new Emirates ID, and payment of MOHRE and GDRFA fees. Late renewals incur fines of AED 50 per day after the grace period and can block future applications for the establishment.

Common Visa Types for Foreign Workers

Dubai offers several residence and work permit categories, each designed for a different type of employment arrangement and duration. The table below summarises the five pathways most commonly used when hiring foreign talent through an employer of record, so you can quickly match each candidate to the right sponsor, validity period, and use case.

Family dependents brought in under a sponsored employee’s residence visa have residence rights only and need their own work permit if they later take up employment.

How an EOR Handles Work Permits

An employer of record in Dubai acts as the legal sponsor for MOHRE purposes, which means the EOR files the work permit application, pays MOHRE and GDRFA fees, and assumes compliance obligations toward the labour, immigration, and health authorities. The EOR handles establishment registration, Emiratisation quota reporting, contract drafting, health insurance enrolment, and Emirates ID coordination. The employee still needs to provide personal documents, attend biometrics at a service centre in person, and complete the medical fitness check.

Because the overseas visa chain adds 2 to 3 weeks beyond a local hire, expatriate onboarding runs closer to 4 to 6 weeks end to end rather than the 2 to 3 weeks quoted for candidates already in the UAE. The EOR can only sponsor work permits within the employment relationship it controls, so clients who need Emiratisation credit recorded against their own establishment still require a locally licensed entity.

Payroll, Taxes, and Social Security in Dubai

Employer Contributions

Employer payroll costs in Dubai differ sharply depending on whether the employee is an expatriate or a UAE or GCC national. Expatriates, who make up the vast majority of EOR hires, generate no social security contributions at all, leaving health insurance and end-of-service gratuity as the main loaded-cost items. UAE and GCC nationals trigger a pension contribution to the General Pension and Social Security Authority that is significantly higher in the Emirate of Abu Dhabi than elsewhere. For a deeper breakdown, see our Dubai payroll tax guide.

Employee Contributions

Employee payroll deductions in Dubai are minimal for expatriates because the UAE levies no personal income tax and no wage-based social security on non-nationals. The only deduction for expatriate staff is the Involuntary Loss of Employment subscription, a symbolic amount designed to fund a federal unemployment insurance pool. UAE nationals pay a 5% pension contribution to GPSSA in addition to the ILOE fee.

Income Tax

The UAE does not levy a personal income tax on employment income for residents or non-residents. Wages, allowances, bonuses, and most other employment benefits are paid gross, and there is no requirement to file a personal tax return. Corporate tax was introduced in June 2023 at 9% on business profits above AED 375,000, but it is paid by the employer entity and does not create any wage withholding (PwC UAE Personal Income Tax).

Payroll Cycle

Private-sector wages in Dubai are paid monthly and must be transferred through the Wages Protection System operated by the UAE Central Bank, which routes salaries from the employer’s UAE bank account to the employee’s account at an approved financial institution. MOHRE requires wages to reach the employee within 15 days of the end of the wage period, and delays of more than 17 days are treated as non-compliance and can block new work permits for the establishment. Salaries are normally paid in AED, although the contract can specify a different currency.

Pay slips are required for every payroll run and must show gross salary, allowances, deductions, and net pay. MOHRE can audit WPS data at any time and cross-checks it against the electronic contract and Emiratisation records.

13th Month Salary and Bonus Pay

A 13th month salary is not mandatory in the UAE and is not a standard market practice in Dubai. Instead, the end-of-service gratuity serves as a form of deferred statutory bonus, paid in a lump sum when the employment ends. Many multinational employers in Dubai pay a discretionary performance bonus at the end of the fiscal year, and some industries such as professional services use target-linked bonuses, but there is no statutory requirement under Federal Decree-Law No. 33 of 2021. Ramadan allowances, housing allowances, and transport allowances are also discretionary and typically included in the contract as fixed monthly amounts rather than annual payments.

Cost of Hiring Through an EOR in Dubai

EOR Service Fees

EOR service fees in Dubai typically fall between $300 and $600 per employee per month, billed in USD regardless of the employee’s local pay package. The fee covers employment contract drafting in the MOHRE format, WPS payroll processing, end-of-service gratuity tracking, ILOE enrolment, health insurance administration under the Dubai rules, and work permit sponsorship through MOHRE and GDRFA. Some providers bundle Emirates ID coordination, visa stamping, and offboarding into the base fee, while others charge separately for visa renewals or off-cycle payroll runs.

Total Employment Cost Breakdown

The all-in cost of employing someone in Dubai goes well beyond gross salary. The table below walks through a realistic cost build-up for a typical hire, layering mandatory employer social contributions, statutory benefits, and payroll taxes on top of base pay so finance teams can budget accurately before an offer goes out.

At a $4,000 monthly gross salary, the total employer cost for an expatriate hire in Dubai runs about 20% above gross, driven mainly by the EOR service fee and end-of-service gratuity accrual. Without the EOR fee, the native statutory loaded cost is only around 10%, one of the lowest in the Middle East because there is no personal income tax and no social security for expatriates. All USD amounts are approximate conversions at $1 = AED 3.67 (April 2026 rate, AED pegged).

Ready to hire in Dubai? RemotePeople handles employment contracts, WPS payroll, MOHRE work permits, Dubai health insurance, and full UAE Labour Law compliance. No local entity needed.

Benefits of Using an EOR in Dubai

The main reason companies use an EOR in Dubai is speed. A trade license, office lease, MOHRE establishment code, and bank account would normally take 6 to 12 weeks to set up and tie up significant capital, while an EOR can onboard an employee in as little as 2 weeks for a local hire. The EOR carries the legal weight of being the registered employer, so the client does not have to register with MOHRE, file Emiratisation reports, or maintain a Dubai bank account with operational balances for payroll.

Compliance is the second big reason. The UAE labour framework has moved quickly since 2022, with new rules on fixed-term contracts, unemployment insurance, Emiratisation quotas, and the Dubai health insurance regime all landing within a few years. A specialist EOR tracks those changes, updates contracts and payroll configurations in real time, and absorbs the fines and back-payments that a direct employer would otherwise face. That compliance layer becomes even more valuable when scaling across the Gulf, because the EOR can run consistent processes across Dubai, Abu Dhabi, Saudi Arabia, and Bahrain.

Cost predictability rounds out the case. Instead of capital-intensive entity setup and unpredictable legal fees, the client pays a flat EOR service fee plus a transparent breakdown of statutory costs. The client can scale the team up or down without unwinding a legal entity, and the EOR’s local expertise typically delivers faster dispute resolution, cleaner terminations, and a better employee experience through a tested payroll and benefits stack.

Termination and Offboarding in Dubai

Notice Periods

Notice periods in Dubai are set by the employment contract but must fall between 30 and 90 days under Article 43 of Federal Decree-Law No. 33 of 2021. The same period applies to both parties unless the contract specifies a longer period for the employer. During the notice period, the employee is entitled to continue working and to receive full pay, including any allowances. Either party can request pay in lieu of notice, in which case the employee receives full wages for the unworked notice period.

The table below breaks down the statutory notice regime in Dubai by employment stage, because the UAE Labour Law uses a two-track system rather than position-level tiers. Post-probation notice is set by the contract within a 30 to 90 day range under Article 43 of Federal Decree-Law No. 33 of 2021, while probation-period notice is set by Article 9 and varies depending on who initiates the separation.

Severance Pay

End-of-service gratuity in Dubai follows Article 51 of Federal Decree-Law No. 33 of 2021: a worker who completes at least one full year of continuous service earns 21 days of basic salary for every year of the first five years, and 30 days of basic salary for every year beyond that, with the total gratuity capped at two years of wages. Allowances for housing, transport, utilities, or furniture are excluded from the calculation, and final settlement must be paid within 14 days of termination.

Calculation Method

End-of-service gratuity is the statutory severance payment for expatriate employees in Dubai. Under Articles 51 and 52 of Federal Decree-Law No. 33 of 2021, an employee who has completed at least 1 year of continuous service receives 21 days of basic wage for each of the first 5 years of service and 30 days of basic wage for each subsequent year. The calculation uses the basic wage only, excluding housing, transport, and other allowances, and the total cannot exceed 2 years of wages regardless of tenure.

Caps and Exceptions

The 2-year wage cap is the main ceiling on gratuity. Employees dismissed for serious misconduct under Article 44, such as disclosing company secrets or assault at work, forfeit their right to gratuity. Employees who resign before completing 1 year of service receive no gratuity, and those who resign during their first 5 years historically received a reduced amount, although the 2022 reforms harmonised the calculation regardless of resignation versus dismissal. Fixed-term contracts that are terminated early by the employer without just cause trigger compensation of at least 3 months’ gross wage or the balance of the contract, whichever is shorter (UAE Government end-of-service guide).

Grounds for Termination

The UAE Labour Law distinguishes between termination with notice, termination for cause, and arbitrary dismissal. With-notice termination requires a valid business reason and the agreed notice period. For-cause termination under Article 44 allows immediate dismissal in narrowly defined cases such as fraud, assault, or repeated violation of safety rules. Arbitrary dismissal, defined in Article 47 as termination unrelated to work performance or conduct, entitles the employee to compensation of up to 3 months’ gross wage in addition to gratuity and notice pay. Dismissal on grounds of pregnancy, filing a legitimate complaint, or trade union activity is void.

EOR vs. Other Hiring Models in Dubai

EOR vs. Setting Up a Local Entity

Choosing between an Employer of Record and setting up your own legal entity in Dubai comes down to timeline, upfront cost, ongoing administrative burden, and how quickly you can scale up or wind down. The table below lays out both paths side by side across setup time, cost, compliance risk, and flexibility so you can match the right model to the size and duration of your Dubai hiring plan.

The entity route makes sense when the Dubai team is large enough to amortise the $8,000 to $25,000 setup cost and the recurring compliance bill, usually when the headcount is 15 or more. It is also the only way to bid on government contracts, win Emiratisation incentives in the employer’s own name, or benefit from free zone tax holidays on export activities. For teams below that threshold, the math rarely works.

An EOR is the faster and cheaper route for one to fifteen hires. It removes the upfront license and capital cost, absorbs MOHRE and Emiratisation reporting, and lets the client redirect legal and operational time toward product and revenue. The tradeoff is less direct control over HR policies and no eligibility for government tenders, which for most expanding businesses is a reasonable price to pay for speed.

EOR vs. Hiring Independent Contractors

Classifying a Dubai-based worker as an independent contractor rather than an employee can expose you to back-taxes, unpaid social contributions, and reclassification penalties if the working relationship looks like employment in practice. The table below contrasts EOR employment with contractor engagement across legal relationship, tax and benefits treatment, IP ownership, and misclassification risk so you can pick the right model role by role.

Independent contractor engagements in Dubai are only appropriate in some cases, typically short-term project work, specialised consulting, and genuinely autonomous roles where the contractor holds a valid UAE trade license or freelance permit. The UAE does not have a formal misclassification test equivalent to the common-law tests used in the UK or US, but MOHRE and the Ministry of Finance both review worker arrangements for substance when disputes arise.

If an authority concludes that a contractor is effectively an employee, the client can face back-payment of end-of-service gratuity, annual leave, and health insurance contributions, together with fines for operating without a MOHRE contract. For core, long-term roles, hiring through an EOR is the cleaner route. RemotePeople’s Dubai contractor solution can handle compliant contractor payments when a genuine freelance arrangement is the right fit.

EOR vs. PEO (Professional Employer Organization)

EORs and PEOs both simplify international hiring, but only an EOR becomes the legal employer of record in Dubai — a critical distinction when you don’t have a local entity of your own. The table below maps the practical differences across legal employer status, entity requirement, liability allocation, and scope of coverage.

The UAE does not have a formal PEO legal framework. MOHRE recognises only one legal employer per employment contract, so arrangements marketed as PEOs in Dubai are typically HR outsourcing services layered on top of the client’s own MOHRE establishment rather than a true co-employment model. A provider cannot legally share employment liability with a client in the way a US PEO would.

In practice, the choice between an EOR and a Dubai HR outsourcing partner comes down to whether the client already holds a MOHRE establishment code. If not, an EOR is the only compliant way to hire without setting up an entity. If the client already has an entity, a local HR outsourcing service can handle payroll, WPS, and Emiratisation reporting without changing the legal employment relationship. See Dubai PEO services for clients that already hold their own trade license.

Public Holidays in Dubai

Dubai observes a defined set of official public holidays on which most private-sector employers must give staff a paid day off (UAE Government official public holidays). The table below lists the statutory holidays employers need to build into payroll calendars and leave planning for the year, along with the date rule for each.

Dubai recognises around 12 paid public holidays each year under Cabinet announcements, depending on the number of Eid days confirmed by moon sighting. Employees required to work on a public holiday are entitled to a replacement day off or payment at 150% of the basic wage under Article 19. Payroll schedules for March and May are typically adjusted around Eid al-Fitr and Eid al-Adha, since banks and government offices close for the full run of Eid days.

How to Get Started with an EOR in Dubai

Engaging an employer of record in Dubai is a structured five-step process that normally runs in parallel with candidate selection so the onboarding timeline stays tight:

• First, scope the role, the target start date, and the compensation package, and decide whether the hire will be a local UAE resident or a candidate relocating from abroad.
• Second, sign the EOR service agreement with RemotePeople and share employee details, ID documents, and any attested qualifications needed for MOHRE.
• Third, the EOR drafts the MOHRE-compliant employment contract in English and Arabic, registers it with MOHRE, and initiates the work permit and entry permit where the candidate is arriving from abroad.
• Fourth, the employee completes medical fitness testing, Emirates ID biometrics, and residence visa stamping, while the EOR configures payroll through WPS and activates a Dubai-compliant health insurance policy.
• Fifth, the employee starts work on day one, fully payrolled, insured, and compliant with UAE labour law, while the EOR handles monthly payroll, gratuity accruals, and government filings on your behalf.

Contact our team to set up your first Dubai hire. RemotePeople handles MOHRE contracts, WPS payroll, work permits, health insurance, and end-of-service gratuity, so you can focus on building the team rather than navigating UAE paperwork.

Where companies hiring in Dubai expand next

Companies hiring in Dubai commonly expand across the GCC, where harmonized residency rules and aligned payroll practices make regional coverage straightforward. Teams frequently add Bahrain for GCC-aligned residency and payroll practices; hiring in the United Arab Emirates often follows for the parent jurisdiction’s framework extending to this market; an EOR partner in Saudi Arabia is a common next step, offering harmonized GCC labor rules and talent mobility; and Qatar rounds out the regional footprint with shared GCC employment frameworks.