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Hiring in the UAE
Pre-employment background checks in the UAE
Hire employees in the UAE
Language requirements in the UAE
Payroll management in the UAE
Start building your global team with CXC
Employer of Record in the UAE
Expanding and managing a workforce in the UAE comes with a unique set of opportunities and challenges. Employers must navigate labour laws, hiring regulations, pre-employment checks, language requirements, and payroll management to ensure compliance with local standards.
Moreover, setting up payroll systems can be complex, requiring companies to comply with wage protection regulations and visa requirements. For businesses looking to streamline their operations, outsourcing payroll services can be an efficient solution.
With these complexities, many companies turn to an Employer of Record (EoR) in the UAE to simplify their hiring and workforce management processes. An EoR acts as a legal employer on behalf of businesses, handling everything from employment contracts and compliance to payroll and onboarding. By using Employer of Record services in the UAE, businesses can quickly establish their teams without the need to set up a local entity.
Partnering with an experienced EoR service provider, like CXC, enables companies to focus on business growth while ensuring full compliance with local labour laws. Whether expanding into the region or managing remote teams, an EoR provides a cost-effective and risk-free solution, offering flexibility and operational efficiency.
In this guide, we will talk about everything you need to know to hire in the UAE compliantly, including pre-employment background checks, language requirements, types of workers, and more.
Hiring in the UAE
Hiring in the UAE involves several legal and administrative steps to ensure compliance with local regulations. Whether recruiting local talent or expatriates, employers must follow structured processes to avoid legal complications and maintain a smooth hiring experience.
The Ministry of Human Resources and Emiratisation (MOHRE) oversees labour affairs in the country, ensuring companies hiring in the UAE adhere to employment laws. The first step in the recruitment process is obtaining a valid trade license, as only registered businesses can legally employ workers.
For expatriates, employers must secure a work permit and residency visa on behalf of the employee. This process includes medical examinations, background checks, and visa stamping. Employment contracts must be formalised in writing and should clearly outline salary, benefits, working hours, and job responsibilities.
Labour laws in the UAE provide comprehensive protections for employees, including regulations on working hours, overtime, and annual leave. For example, the standard workweek is 48 hours, and during Ramadan, working hours are reduced by two hours per day. Employers must also comply with Emiratization policies, which require a certain percentage of UAE nationals in the workforce.
Cost of hiring in the UAE
The cost of hiring an employee in the UAE varies depending on industry, job role, and visa requirements. Employers must cover visa fees, medical tests, and insurance, which can add significant costs to the recruitment process.
Salary expectations also differ between industries. While the UAE does not have a minimum wage, wage protection systems ensure timely and fair salary payments. Additionally, employees are entitled to gratuity pay upon completion of their contract, calculated based on years of service and final salary.
Other expenses include accommodation allowances, transportation, and relocation costs, which many companies provide to attract top talent. The recruitment process can also be expedited by engaging a contract hiring agency in the UAE, which helps businesses streamline compliance and reduce administrative burdens.
Employment agencies in the UAE
Many businesses partner with hiring agencies in the UAE to access a broader talent pool and simplify the recruitment process. These agencies specialise in sourcing candidates, conducting background checks, and ensuring compliance with local regulations.
Using a contract hiring agency in the UAE is particularly beneficial for companies looking to fill temporary or project-based roles. Additionally, working with an Employer of Record (EoR) service provider can help businesses hire employees legally without establishing a local entity. EoR companies handle payroll, visas, and HR compliance, reducing the complexities of direct employment.
To remain competitive in the UAE’s job market, employers should stay updated on labour law changes and leverage hiring solutions that align with their business goals. Ensuring compliance, managing costs effectively, and utilising employment agencies can help businesses build a strong workforce while navigating the evolving job market.
Pre-employment background checks in the UAE
Conducting a background check in the UAE is an essential step in the hiring process to ensure candidates meet legal and company-specific requirements. Employers must secure prior approval from the Ministry of Human Resources and Emiratisation (MOHRE) or relevant free zone authority before hiring a foreign employee on a local employment contract.
The level of screening varies based on nationality and employer type. In most cases, employers cannot independently verify certain aspects of an applicant’s background, so employees themselves may need to provide supporting documents. Common checks include verification of employment history, educational credentials, and professional qualifications. Some industries, particularly finance and healthcare, have stricter screening requirements.
Employers operating within free zones must adhere to specific hiring regulations set by the respective free zone authority. Many require bilingual employment contracts and may issue employee ID cards in place of work permits. Additionally, in some cases, free zone authorities act as the legal sponsors for foreign employees instead of the hiring company.
Medical checks in the UAE
Medical screening is a mandatory requirement for candidates seeking employment in the UAE. The process includes a health examination to screen for infectious diseases such as tuberculosis, HIV, and hepatitis. If an applicant fails the medical test, they may be deemed unfit for employment and required to leave the country.
Employers hiring foreign nationals must ensure that medical checks are completed before the work permit and residency visa are issued. Certain industries, such as food services and healthcare, may have additional medical fitness requirements. The medical tests must be conducted at government-approved health centres.
Criminal record checks in the UAE
While employers in the UAE do not have unrestricted access to criminal records, some positions may require candidates to provide a police clearance certificate or good conduct certificate from their home country or the UAE. The requirement is more common in sectors like education, finance, and security-sensitive roles.
The UAE authorities conduct background checks on expat employees based on national security considerations. In some cases, expatriates may be required to obtain security clearance before being granted a work visa. Employers should communicate these requirements to candidates early in the hiring process to prevent delays.
Employers looking to hire workers for short-term assignments can explore alternative visas, such as business visit visas or mission visas, which allow temporary work without the need for a long-term employment contract. Golden visa holders are exempt from standard residency visa requirements but must still obtain a work permit from their employer.
Understanding and complying with employment background check UAE regulations is critical for businesses to mitigate risks and streamline the hiring process. Employers should stay informed of evolving legal requirements to ensure a seamless recruitment experience while maintaining compliance with UAE labour laws.
Hire employees in the UAE
Employees in the UAE
To hire employees in the UAE, businesses must comply with local labour regulations, including contract requirements and sponsorship rules. All employees, except those regulated by the DIFC or ADGM, must be employed under fixed-term contracts. Employers must ensure that existing unlimited-term contracts are converted to fixed-term contracts by December 31, 2023.
Part-time workers in the UAE are recognised under labour law as individuals working for one or more employers for a specified number of hours or days. In DIFC, part-time workers are those who work fewer than 8 hours per day or less than 5 days per week. Regardless of the jurisdiction, part-time employees are entitled to prorated employment benefits.
Employers must also ensure that all documents for hiring new employees in the UAE are correctly processed, including employment contracts, work permits, and residency visas. The hiring process involves MOHRE approvals for mainland companies, while free zone businesses must follow their respective authorities’ procedures.
Independent contractors in the UAE
The concept of independent contractors in the UAE is limited due to strict sponsorship requirements. Individuals seeking to work as independent professionals must establish their own professional licence or secure a freelance permit. The UAE’s new Labour Law, effective February 2, 2022, introduced this permit, allowing individuals to provide services without being sponsored by a specific employer.
Under Article 8 of the Executive Regulations to the Labour Law, freelancers are considered self-employed and are not subject to standard employment conditions. They can offer services to multiple clients, either individuals or businesses, without being classified as employees. However, the expected Green Visa for freelance work is not yet available.
Agency workers in the UAE
Businesses can also engage agency workers in the UAE, where staffing agencies provide temporary employees to companies. The Labour Law classifies this under employment agency activities, where an agency hires an individual and then supplies their services to a third party. In this model, the employment relationship remains with the agency, not the hiring company.
This option is commonly used for short-term projects or industries with fluctuating labour demands. Employers can enter into an agreement to hire employees between companies in the UAE, particularly when outsourcing workforce solutions. This provides flexibility in staffing without long-term contractual obligations.
Employers should carefully evaluate the best hiring option to meet their business needs while ensuring compliance with UAE regulations. Whether opting for standard employment, contracting freelancers, or using agency workers, it is essential to navigate the legal landscape efficiently to avoid compliance issues and optimise workforce management.
Language requirements in the UAE
The Arabic language in the UAE plays a crucial role in business and employment documentation. According to UAE Labour Law, all employment contracts and records must be in Arabic. However, in practice, many businesses use English documentation alongside Arabic.
The Ministry of Human Resources and Emiratisation (MOHRE) issues standard employment contracts in dual English and Arabic, as well as in widely spoken South Asian languages. In cases where multiple languages are used, the Arabic version takes precedence in legal matters.
While free zones may not strictly enforce the Arabic language requirement, employment documents must be provided in a language that the employee understands. In legal disputes, any document submitted to the courts must be translated into Arabic, and the official Arabic translation will always prevail.
The official languages in the UAE impact various business processes, making it essential for employers to ensure compliance with language regulations while maintaining accessibility for a diverse workforce. Given the UAE’s multicultural environment, businesses often adopt bilingual or multilingual documentation to cater to employees from different backgrounds.
Employers operating in sectors such as government, banking, and legal services should be especially mindful of the Arabic language requirements, as these industries may have stricter regulations. Additionally, Arabic proficiency can be an advantage for employees seeking roles that require direct engagement with government entities and local clients.
Employers should carefully consider linguistic requirements to avoid legal complications and facilitate clear communication with employees. Adhering to these regulations not only ensures compliance but also fosters a more inclusive and effective work environment.
Payroll management in the UAE
Managing payroll in the UAE requires compliance with local labour laws. Employers must establish a structured payroll system to ensure timely salary payments while meeting government mandates.
How to set up payroll in the UAE
To process payroll in the UAE, companies must first establish a legal presence in the country. Foreign entities cannot directly employ staff in the UAE without having at least a branch or representative office. This is because employees require work permits or employment ID cards, which must be sponsored by a registered local entity.
Key steps in setting up payroll management in the UAE include:
- Company registration: Employers must obtain a valid trade licence and register with the Ministry of Human Resources and Emiratisation (MOHRE) or the relevant free zone authority.
- Employee registration: Every employee must have a work permit, residence visa, and Emirates ID, which the employer is responsible for securing.
- Payroll system implementation: Employers must set up a payroll system that complies with the Wage Protection System (WPS), which mandates salary payments through authorised financial institutions.
- Compliance with UAE labour laws: Employment contracts must specify salary details, benefits, and allowances, ensuring adherence to UAE’s labour laws.
- Salary disbursement: Salaries must be paid in UAE dirhams (AED) through WPS-approved channels, ensuring employees receive timely and accurate payments.
In some cases, foreign employees may work in the UAE under secondment arrangements, where a local entity sponsors the work permit while the individual is seconded to a foreign company. Additionally, expatriates working remotely for non-UAE companies can apply for a one-year renewable remote work visa, provided they meet the minimum income requirement of USD 3,500 per month.
Outsourcing payroll in the UAE
Many businesses choose to outsource payroll management in the UAE to third-party providers or payroll system providers. CXC has both the experience and expertise in setting up and managing payroll for businesses in the UAE and around the region.
Outsourcing payroll can offer several benefits, including:
- Ensuring compliance with UAE labour laws and WPS requirements.
- Reducing administrative burdens and HR workload.
- Mitigating risks related to payroll errors and legal penalties.
- Providing streamlined payment processing for expatriates and local employees.
Payroll outsourcing providers handle tasks such as salary calculations, tax deductions, employee benefits, and regulatory reporting. This is particularly beneficial for multinational companies that need to manage payroll across different jurisdictions.
By implementing a compliant and efficient payroll process, businesses can enhance employee satisfaction, minimise compliance risks, and focus on core operations. Whether managing payroll in-house or outsourcing to a professional provider, ensuring adherence to UAE regulations is critical for smooth payroll operations.
Start building your global team with CXC
Expanding your business into the UAE offers exciting growth opportunities, but it also comes with unique challenges. Establishing a legal entity can be a complex, time-consuming, and costly process, and navigating it alone may expose your business to compliance risks.
This is where CXC can support you. As a trusted Employer of Record (EoR) partner, we simplify the process of hiring in the UAE and 100+ countries. From ensuring compliance with local labour laws and drafting employment contracts to managing seamless onboarding and offboarding, we take care of every detail—so you can focus on growing your business.
Looking to expand your team in the UAE and beyond? Contact our experts today to learn how we can help you scale with confidence and full compliance.
Compliantly hire employees anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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