How to hire in United Arab Emirates (UAE) through an EOR

All UAE employment contracts must be in writing and attested by the Ministry of Human Resources and Emiratization (MOHRE). You'll use a standard bilingual template in English and Arabic, with Arabic taking precedence in any dispute.

Limited-term contracts are now the default for most private sector roles. They cap at three years, auto-expire without renewal, and give you clear control over endings. This shift away from unlimited contracts reduces long-term liabilities.

Most companies use limited-term contracts for the vast majority of hires. They match visa durations, keep gratuity payouts predictable, and make terminations more straightforward after probation. Unlimited contracts are harder to exit cleanly.

What has to be in the contract

UAE law requires specific details in every contract. You'll need to include job title, duties, start date, salary (base plus allowances), working hours, leave entitlements, probation length, and notice periods. End-of-service gratuity rules should be listed too.

Contracts must be bilingual: English and Arabic. Arabic controls if there's a dispute in court. Submit to MOHRE for attestation before the employee starts work. Un-attested contracts risk fines of up to AED 20,000 per violation.

Probation maxes out at 6 months. You can end employment during this period with 14 days' notice, or 30 days if the employee is moving to another UAE employer. No notice is required in cases of serious misconduct. After probation, notice periods for limited-term contracts run from 30 to 90 days.

Contractor vs employee

Misclassification carries real consequences here. Courts look at control: if you dictate hours, tools, location, and exclusivity, that person is likely an employee. They'll also consider behavioral control, financial control, and the nature of the relationship, including whether benefits are paid and how permanent the arrangement is.

The penalties are significant. Fines run AED 100,000 per misclassified worker, plus back payments covering social security, gratuity (21 days' pay per year served), unpaid leave, and overtime. You could also face visa fees, labor bans, and potential criminal liability for repeat offenses. MOHRE enforcement stepped up considerably in 2025.

Non-compete clauses can hold up if they're reasonable: capped at 2 years, tied to the specific role, geographically limited, and accompanied by compensation during the restriction period. Overly broad clauses tend to fail in court. On IP: rights are enforceable if explicitly assigned in the contract, but employees own their inventions by default unless you specify otherwise. Add an assignment clause upfront to protect yourself.

If someone is doing ongoing work, don't rely on a contractor label. Use a part-time or freelance contract with MOHRE approval instead. If you've already got a misclassification issue, working with an EOR to attest contracts properly is one way to get back on the right side of things before an audit.

Employees in the UAE get 30 calendar days of paid annual leave after one year. That's more generous than many countries, and it accrues at two days per month once they've passed the six-month mark.

Time off

You'll give employees 30 fully paid calendar days of annual leave for each complete year of service. For service between six months and one year, it accrues at two days per month. If someone leaves before a full year is up, you prorate it based on time worked.

Leave starts from day one, but you can decide whether it applies during probation. You set the schedule, taking business needs and employee preferences into account. Unused leave can carry forward with your approval, but employees need to use it within two years or you cash it out at basic salary rate.

Public holidays are on top of annual leave. They're paid days off, announced each year by the government. The table below shows the typical ones. Always confirm exact dates, since Islamic holidays shift with the lunar calendar.

All leave types

UAE law sets clear minimums for each leave type. Unless noted, they're paid at full wage, and employees keep their jobs during these periods.

Mandatory benefits

Instead of a pension, most expatriates are entitled to an end-of-service gratuity. It's calculated at 21 days' basic salary per year for the first 5 years, then 30 days per year after that. You pay it out on termination, provided the employee has completed at least one year. UAE nationals go into the pension system instead, where your contribution is 15% of basic salary and the employee contributes 5%.

Health insurance is mandatory in Dubai and Abu Dhabi. You cover the full cost for employees, and often dependents too. There's no federal social security for expats, but work injury insurance is required through GPSSA or an equivalent scheme.

There are no unusual mandates like meal vouchers or transport subsidies. End-of-service gratuity is the main one to plan for. Budget roughly 2-3 months' salary per year of service for longer-tenured employees.

What people actually expect

If you're hiring skilled workers, the legal minimums won't get you far. Both locals and expats typically expect private health insurance that covers the family, including dental and optical. Life insurance and a 13th-month bonus are also common at competitive employers.

The 30-day annual leave entitlement is the floor, not the ceiling. Top employers offer 35-40 days. Flexibility matters too, including remote work options, which became more formalised after the 2021 rule changes allowing four days remote. Housing or transport allowances are standard for mid-level roles, often in the range of AED 50,000-100,000 per year.

Sticking to bare minimums will generally limit you to entry-level candidates. To bring in engineers, managers, or specialists, you'll need to match the market: annual flights home for expat employees and education allowances for their children are widely expected. Check salary surveys like Bayt.com for your specific industry. Gaps in your offer tend to show up as longer time-to-hire.

The UAE has moved toward stronger employee protections in recent years, and that shapes how terminations work in practice. You can't let someone go without cause, and the process is more regulated than in many Western countries. Here's what you need to know.

Valid grounds for termination

You can terminate for cause, but the law is specific about what qualifies. Valid reasons include persistent failure to perform essential job duties (after a written investigation and two formal warnings), confidentiality breaches that cause actual damage, being under the influence of alcohol or controlled substances at work, workplace violence or assault, unauthorized absence exceeding 20 non-consecutive days per year or 7 consecutive days, and unlawful exploitation of a position for personal gain. Redundancy is also recognized as valid grounds under the current law, which wasn't the case before.

There are also automatic termination scenarios: employee death or permanent disability (with medical certification), criminal conviction involving a freedom-restricting sentence of three months or more, permanent business closure, employer bankruptcy or insolvency, and work permit issues beyond the employee's control.

Unfair dismissal includes terminating without valid cause, skipping proper procedures, failing to document performance issues, or dismissing someone on discriminatory grounds. UAE courts now rely heavily on digital evidence and e-notifications, so if you're terminating for cause, document everything: performance reviews, warnings, investigation notes. If an employee claims arbitrary dismissal and you can't prove otherwise, you're liable for compensation.

The UAE is genuinely employee-friendly here. You need a real reason, you need to follow the process, and you need proof. It's not a hire-and-fire-at-will jurisdiction.

Notice periods

Notice requirements depend on tenure and who's initiating the termination. During probation (maximum 6 months), you give 14 days' notice. After probation, the range is 30 to 90 days, and any clause exceeding 90 days is void. Employees can waive notice if you've breached an obligation or caused them harm.

During the notice period, employees are entitled to one day of unpaid leave per week to look for new work, and they must receive their full salary throughout. Termination can be communicated via email, WhatsApp, or any method that confirms the employee received it.

Severance and gratuity

End-of-service gratuity is mandatory and calculated on basic salary only. The formula is tiered by tenure, with a hard cap at two years' basic salary.

You must pay all end-of-service entitlements within 14 days of the contract ending. That includes gratuity, accrued vacation, repatriation expenses, and any other contractual benefits. If you don't pay on time, the employee can file a complaint with the Ministry of Labor.

Gratuity applies to most terminations. The main exceptions are resignations without cause and terminations during probation for performance reasons, though even that second one is contested. If you're terminating for redundancy, gratuity is due in full.

Work permits and visas

You can hire foreign nationals through an EOR in the UAE. The EOR handles work permit sponsorship on your behalf, which is one of their core functions. The main visa categories are employment visas (tied to a specific employer), investor visas, and freelance visas for self-employed individuals. The golden visa exists for long-term residence but isn't relevant for standard employment.

The EOR manages the full work permit process: applying through the General Directorate of Residency and Foreigners Affairs (GDRFA), handling medical clearances, and processing the visa. Timelines typically run 2 to 4 weeks from application to approval, depending on document completeness and government processing speed. Key requirements include a valid passport, medical fitness certificate, educational qualifications matching the role, and a clean criminal record.

Work permits are tied to the sponsoring employer. If an employee leaves, the permit becomes invalid and must be cancelled. The EOR handles that cancellation. When you hire through an EOR, they're the legal sponsor, which means you're not managing permits directly.

There's no digital nomad visa in the UAE, though the golden visa can be used for remote work if the individual qualifies through other criteria such as investment or property ownership.

Other compliance matters

Data protection is governed by Federal Law No. 45 of 2021 (the UAE Data Protection Law). You must handle employee personal data securely and can't share it without consent. Trade unions exist but aren't common in the private sector, and collective bargaining agreements are rare. Most employment relationships are individual contracts.

The major regulatory shift came in 2021 with the new Labour Law (Federal Decree Law No. 33 of 2021). All unlimited contracts must be converted to fixed-term contracts (maximum 3 years, renewable). If you're still operating under old contracts, convert them now. The 2026 updates focus on digital dispute resolution and online filing with the Ministry of Human Resources and Emiratisation (MOHRE), making it faster for employees to challenge terminations. Retaliation against employees who file complaints is prohibited.

If a dispute arises, employees can file for mediation through MOHRE before going to court. The process is now entirely digital, which means faster outcomes but also a clearer paper trail on both sides. Document everything.