How to Hire Workers in United Arab Emirates | Employer of Record (EOR) in United Arab Emirates

Holidays – In the UAE, most Workers are entitled to eight paid national holidays, several of which may span multiple days. If a worker is required to work on a public holiday, they must be compensated either at 150% of their basic wage or granted a substitute day off in addition to a 50% bonus on their daily wage. The official public holidays in the UAE are as follows: Gregorian New Year Eid Al Fitr Arafah Day Hijri New Year Prophet Mohammed’s Birthday Commemoration Day UAE National Day

In the UAE, Workers are entitled to 30 calendar days of paid annual leave after completing one year of continuous service. For Workers who have worked between 6 months and 1 year, the entitlement is 2 days per month. Leave is calculated based on calendar days and includes public holidays and weekends that fall within the leave period. Companies may determine the timing of leave, but Workers must be given sufficient notice. Unused leave can be carried forward for up to 2 years, after which it may lapse unless delayed due to work requirements. Upon termination, Workers are entitled to payment of unused leave as their final wage rate. During the probationary period, they will accumulate 2 days of vacation per month, totaling 12 days by the end of the probation period. Upon successfully completing probation, the accrual rate will increase to 2.5 days per month, resulting in 15 days of vacation accrued in the first 6 months and an additional 15 days in the following 6 months.

In the UAE, worker classifications are primarily based on skill level and educational background. The Ministry of Human Resources and Emiratization (MOHRE) categorizes employees into five professional levels: Level 1 includes professionals such as doctors, engineers, and educators. Level 2 covers technical and administrative roles requiring diplomas or equivalent qualifications Level 3 pertains to skilled labor, including clerical and sales positions Level 4 applies to semi-skilled workers, such as drivers. Level 5 is designated for low-skilled labor, including roles in cleaning and construction.

The probationary period for any Worker in the UAE must not exceed six months and cannot be extended beyond that. Once the Worker successfully completes the probation period and continues in service, this period is counted as part of their total length of engagement. To terminate a Worker during the probationary period, at least 14 days' prior written notice is required. If a Worker wishes to change jobs during the probationary period, they must submit at least one month's written notice. Alternatively, if the Worker chooses to resign and leave the UAE during the probationary period, they must provide 14 days prior written notice.

Following a probationary period, Workers are entitled to 90 days of paid sick leave per year payable at full-pay for the first 15 days, half-pay for the next 30 days, and unpaid thereafter. Workers who are sick for 3 days or less do not need to provide a medical certificate, for sickness lastly 4 days or more the worker must provide a medical report issued by government approved medical facility.

Under UAE Labor Law, the standard working hours are 8 hours per day or 48 hours per week. However, the working hours may vary depending on the sector or specific worker categories. Workers are entitled to one or more breaks if they work for five consecutive hours, with each break being at least one hour. Breaks are not counted within working hours. In cases where Workers are remote, specific working hours must be agreed upon. From June 15 to September 15, outdoor work is prohibited from 12:30 to 3:00 pm to protect workers from extreme heat. During Ramadan, working hours are reduced by 2 hours per day. Lastly, Friday is the designated day of rest, and work on this day must either be compensated for with a day off in lieu of or 150% pay. The working week typically runs from Sunday to Thursday.

Workers may work overtime, provided that the total number of extra hours does not exceed two hours per day. If the nature of the work requires the Worker to exceed regular working hours, they will be entitled to overtime pay at 125% of their basic salary. If overtime work is performed between 10:00 pm and 4:00 am, the rate increases to 150% of their normal pay. This provision does not apply to Workers scheduled on a shift basis. If the Worker is required to work on their designated day of rest, they will be entitled to a substitute rest day or overtime pay at 150% of their base salary.

In the UAE, Worker termination is governed by Federal Decree-Law No. 33 of 2021. Workers can be terminated for reasons such as poor performance, misconduct, or redundancy, with a 30-day notice period required. Immediate dismissal without notice is permitted for gross misconduct. Workers may resign with a 30-day notice and are entitled to an end-of-service benefit based on their length of service, with 21 days of basic pay for the first five years, and 30 days per year thereafter. Workers on fixed-term contracts may be required to give notice if terminating early. Special protections apply to women on maternity leave and Workers with disabilities. Workers do not receive severance pay, only their end-of-service benefit. The benefit is paid based on their length of service, with 21 days of basic pay for the first five years, and 30 days per year thereafte

Workers are generally required to provide a 30-day notice or the notice period specified in their contract, whichever is longer. Workers who resign are still entitled to their end-of-service benefit.

Workers do not receive severance pay, only their end-of-service benefit. The benefit is paid based on their length of service, with 21 days of basic pay for the first five years, and 30 days per year thereafter.

Visa details Flight home  Effective July 1, 2024, the government will be assessing a fee for engaging non-Emirati citizens. If a non-Emirati citizen is engaged as a Worker, the current cost of this fee will be set forth on the quote. However, this fee is subject to annual adjustments as required by law and will be invoiced through to the Client based on the applicable rate at the time of invoice.

Social Security Contributions, End of Service Benefit (EOSB), and private medical insurance (employee and family)