Dubai is one of the world’s top business hubs, attracting companies and professionals from around the globe. Hiring Employees in Dubai is an important step for businesses looking to expand. However, understanding the legal requirements, visa procedures, and costs involved is crucial for employers.
In this blog, we’ll explore everything you need to know about hiring employees, including the legal framework, costs, and common questions.
Legal Requirements for Hiring Employees in Dubai
Dubai’s employment laws are governed by the UAE Labour Law, which ensures fair treatment for both employers and employees. Here are the key legal requirements:
- 1. Business License
Before hiring employees, your company must have a valid business license. The type of license depends on your business activity and location (mainland, free zone, or offshore).
- 2. Work Permits and Visas
All foreign employees must have a valid work permit and residence visa. Employers are responsible for applying for these documents through the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA).
- 3. Employment Contracts
Employers must provide a formal employment contract that includes:
- Job title and description
- Salary and benefits
- Working hours
- Leave entitlements
- Termination clauses
- 4. Wages and Payment Regulations
Salaries must be paid through the Wages Protection System (WPS), ensuring timely and legal wage payments.
- 5. End-of-Service Benefits
Employees who complete one year of service are entitled to gratuity payments, calculated based on their last drawn salary and years of service.
- 6. Health Insurance
Employers must provide mandatory health insurance to all employees as per UAE law.
- 7. Compliance with Emiratisation Policies
Companies must comply with the UAE’s Emiratisation policies, which require hiring a certain percentage of UAE nationals in specific sectors.
- 8. Working Hours and Overtime
The standard working hours are 8 hours per day or 48 hours per week, with additional overtime regulations for extra working hours.
Costs of Hiring Employees
The cost of hiring employees varies depending on the business setup and job position. Here are the main expenses:
- 1. Work Permit & Visa Costs
- Employment Visa Fee: AED 3,000 – AED 7,000 (varies by skill level and company category)
- Medical Test & Emirates ID: AED 1,000 – AED 2,000
- Visa Stamping & Residency Permit: AED 500 – AED 1,000
- 2. Health Insurance
- Basic Insurance Plan: AED 600 – AED 1,500 per year
- Comprehensive Insurance: AED 2,000 – AED 5,000 per year
- 3. Employee Salary & Benefits
- Average Salaries: AED 5,000 – AED 30,000 per month (varies by industry and experience)
- Annual Leave Pay: Employees are entitled to 30 days of paid leave after one year
- Gratuity Payment: Calculated based on the employee’s final salary
- End-of-Service Benefits: A mandatory payment for employees completing at least one year of service
- 4. Office Setup Costs
- Office Rent: AED 20,000 – AED 100,000 per year (varies by location)
- Equipment & Utilities: AED 5,000 – AED 20,000
- License Renewal Fees: AED 10,000 – AED 15,000 per year
Hiring Process for Employees
- 1. Define Job Roles and Requirements
Clearly outline the job responsibilities, skills required, and salary range.
- 2. Advertise Job Openings
Use platforms like LinkedIn, Bayt, and GulfTalent to attract candidates.
- 3. Conduct Interviews
Screen applicants and conduct interviews to find the best fit for the role.
- 4. Issue a Job Offer
Once selected, provide a written job offer detailing salary, benefits, and work conditions.
- 5. Apply for a Work Visa
Submit visa applications through MOHRE and GDRFA.
- 6. Medical Tests and Emirates ID
The employee must undergo a medical test and apply for an Emirates ID card.
- 7. Visa Stamping and Labor Card
Once all approvals are received, the visa is stamped, and a labor card is issued.
- 8. Onboarding and Training
Ensure a smooth transition by providing necessary training and orientation.
FAQs
Can companies hire employees from outside the UAE?
Yes, companies can proceed with Hiring Employees in Dubai from abroad and sponsor their work visas in compliance with UAE labor laws.
How long does the hiring process take?
The visa processing time is usually 2-4 weeks, depending on document approvals.
Are employers required to provide accommodation?
It depends on the company policy and employment contract. Some companies offer accommodation allowances.
What happens if an employee’s contract is terminated early?
Employers must follow termination rules and provide notice periods as per UAE Labour Law. Compensation may be required.
Can employees change jobs easily in Dubai?
Yes, but they may need to obtain a No Objection Certificate (NOC) from their current employer, depending on contract terms.
What are the penalties for not complying with employment laws?
Fines, legal action, and company blacklisting can occur if labor laws are violated.
What is the probation period for new employees?
The probation period is typically 3 to 6 months, as per UAE Labor Law.
Conclusion
Hiring Employees in Dubai involves various legal and financial considerations. Employers must follow UAE labor laws, provide necessary visas and health insurance, and comply with salary and benefit regulations. While costs may vary, planning and understanding the process can help businesses hire the right talent efficiently.
Dubai’s business-friendly policies make it an attractive destination for hiring skilled professionals. By following the correct procedures, businesses can build a strong workforce and contribute to Dubai’s dynamic economy. If you’re planning to hire in Dubai, ensure compliance with legal requirements and best hiring practices for a smooth and successful process.
Start your hiring process today and build a strong team for your business in Dubai!
