CURRENT HIRING FOR UAE

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On September 5th, 2022, the UAE government implemented new immigration regulations including a new residency visa system that introduces several new categories.

Under the new regulations residence permits for work include:

• Residence permits for contractual employment – an employer-sponsored resident permit that requires Ministry of Human Resources and Emiratization (MOHRE) approval and an employment contract

• Green Visa – a 5-year self-sponsored residence permit for investors, highly-skilled works, and freelancers

To obtain a residence visa in the UAE, employees will need the following documents:

• A valid passport and a photocopy

• Passport photos

• An Emirates ID card

• An entry permit from the Ministry of Labor

• The results of a medical screening

• A copy of a company card from the employer

• A copy of the company’s commercial license

The employee may apply for a work permit after obtaining a residence visa. To get a work permit, the employee will need all of the documents listed above as well as a work permit application form, which must be completed in Arabic, and an employment contract or job offer from a company in the UAE.

The United Arab Emirates comprises seven Emirates. Most U.S. technology companies hiring sales employees in the UAE focus on the emirates of Abu Dhabi or Dubai. There are also approximately 45 free trade zones in the UAE, more than 30 of which are located in Dubai, each managed by its own free zone authority. Traditionally, companies in the UAE would establish a branch office or subsidiary in Abu Dhabi, Dubai or in one of the free zones, which would enable the company to sponsor or access work permits and thus hire employees.

A business license is required for any business operating in the UAE. Employees must be sponsored under the correct visa in the UAE, either by their employer if on the mainland, or by the respective free trade zone authority if working for a company in the free zone. A company must have the appropriate business license(s) in order to obtain a visa for its employees. If an employee is found to be living and working in the UAE without a visa, or if a company sponsoring an employee’s visa is not properly licensed, the employee may be asked to leave the country and both the employee and the company may be blacklisted from doing business in the UAE.

The UAE Labour Law regulates employment on the mainland of the UAE. If employees are employed in a free zone, their employment is regulated by the employment law adopted by the free zone authority where the employee is employed, which may contain differences from the UAE Labour Law. Each free zone authority has its own employment law and employees are subject to the rules and regulations of their respective free zone authorities. 

A written contract is required to submit an application for visa sponsorship. It is best practice for companies to put in place a strong, written contract in both Arabic and English which spells out the terms of the employee’s compensation, benefits, and termination requirements. Any employment contract in the UAE should always state the salary and any compensation amounts in United Arab Emirates Dirham (AED) rather than a foreign currency.

All of our local employees are provided with robust locally compliant employment contracts that include protection of intellectual property of our customers. You get access to great talent in the UAE, with no need to enter into your own employment contracts.

In the UAE, the standard working week is Monday to Friday, with 40 working hours. Actual working hours may vary according to the needs and requirements of the job responsibilities. The maximum working hours in the UAE are 8 hours a day, or 48 hours in a week. The UAE federal government has adopted a four and a half-day working week. Hence, government sector employees work eight hours, from 7.30 am to 3.30 pm from Monday to Thursday, and from 7.30 am to 12.00 pm on Fridays. Saturdays and Sundays are the official weekends.

Subject to prior approval being received, employees can claim overtime as per UAE labor law. If the circumstances require the employee to work on an off-day, as specified in the labor contract, or work regulations, then the employee will be entitled to a substitute rest day, or pay equal to normal working hours’ remuneration (which is based on basic salary) plus 50 percent of that pay.

During Ramadan, local laws state that working hours must be reduced by 2 hours a day.

An employee is entitled to an official holiday with the full wage for all holidays declared by the government for the public and private sectors.

Islamic Holidays are timed according to local sightings of various phases of the moon, and the dates given above are approximations. Therefore, the dates of the holidays are subject to change, and we cannot guarantee their complete accuracy.

The number of days of holiday is based on expected days off for the private sector. Private sector employees are entitled to full pay on official holidays;

• New Year’s Day (1 day)

• Eid Al Fitr (3 or 4 days)

• Eid Al Adha (4 days)

• Islamic New Year (1 or 2 days)

• Prophet’s Birthday (1 or 2 days)

• Commemoration Day (1 day)

• UAE National Day

Thirty calendar days of vacation is a market norm benefit in the UAE. Vacation leave is often based on length of service:

• Less than 6 months: The employee is not entitled to an annual vacation

• 6-12 months: The employee is entitled to an annual vacation of not less than two days each month

• Over 1 year: The employee is entitled to 30 days of vacation

Vacation time that is not used may be carried forward and accrued or paid out in lieu. Unless advised otherwise by an employer employees must utilize their annual leave in the applicable annual leave year.

Employees are entitled to a payment in lieu of unused leave upon the termination of employment calculated on the basis of an employee’s basic salary only.

After three months of continuous service following the probation period, an employee is entitled to up to 90 days of sick leave per year, paid as follows:

• The full wage for the first 15 days.

• The half wage for the next 30 days.

• The remaining period would be without a wage.

However, if the employee’s illness is directly caused by his misconduct, s/he is not entitled to any wage during the sick leave.

During the probationary period, the employee may get a sick leave without pay, subject to the approval of the employer and based on a medical report issued by the medical entity that stipulates the necessity of the leave.

Working women shall be entitled to 60 days of maternity leave, 45 days full pay, and 15 days half pay.

If the employee gives birth after 6 months or more from pregnancy, either the child is born deceased or alive or born alive then deceased, the employee is entitled to 45 days based on full pay, following 15 days based on half-pay, then following consecutive or inconsecutive 45 days without pay based on a report from a Medical Authority.

In case an employee gives birth to a sick child or People of Determination who require a full-time attendance based on a report from a medical authority then the employee shall be entitled to 30 days after the maternity leave, extended to another 30 days without pay.

In UAE, 5 paid working days of Paternity leave is granted and can be taken consecutively or non-consecutively within the first six months of birth (available to mother and father).

For expats, insurance coverage is mandatory for employees and discretionary but best practice to cover dependents. 

An employee who completes one year or more in continuous service is entitled to a severance (sometimes referred to as a ‘gratuity’) at the end of their service. If an employee is terminated, he or she would be entitled to gratuity pay as follows:

• If service is less than 1 year, End of Service Benefit is not applicable.

• If service is between 1 to 5 years, End of Service Benefit is calculated as 21 days base salary * number of years

• If service is more than 5 years, End of Service Benefit is calculated as 21 days base salary for the first 5 years + 30 days basic salary for the rest of the years

An employee who completes one year or more in continuous service is entitled to a severance (sometimes referred to as a ‘gratuity’) at the end of their service. If an employee is terminated, he or she would be entitled to gratuity pay as follows:

• If service is less than 1 year, End of Service Benefit is not applicable.

• If service is between 1 to 5 years, End of Service Benefit is calculated as 21 days base salary * number of years

• If service is more than 5 years, End of Service Benefit is calculated as 21 days base salary for the first 5 years + 30 days basic salary for the rest of the years

There are no employer taxes in the UAE, however, we recommend accruing 8.3% of the employee’s compensation as for the End of Service Benefit or Gratuity.