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Global Expansion Guide

United Arab Emirates

Manage and pay your employees easily with BIPO in the UAE and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

UAE Dirham (AED)

employment guide_language

Language

Arabic

employment guide_capital

Capital

Abu Dhabi

Employer of Record UAE

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Other Regulations

Probationary Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in the UAE

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  • Global Hiring Guide
  • United Arab Emirates

Employer of Record UAE

Embark on your business expansion in the UAE with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the UAE market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

  • From the implementation date of the new labour law in February 2022, the only type of employment contract is fixed-term. Employers must convert indefinite contracts to fixed-term contracts on or before 31st of December 2023.

    • Unless under special circumstances, the duration of fixed-term contracts shall not exceed 3 years.
    • With the consent of the employer and the employee, the employment contract may be renewed upon expiration. In the case of extension or renewal of the employment contract, the new term shall be deemed as an extension of the original term and shall be included in the calculation of the employee’s continuous service period.
  • For renewal or modification of any type of employment contract, the new terms shall be deemed as an extension of the original contract terms, and the service period of the new contract shall be counted and added into the original contract when calculating the employee’s service period.

  • An employment contract should include below contents:

    • Start date
    • Position
    • Work location
    • Salary and benefits
    • Payroll cycle
    • Timesheet (hour, day)
    • Employment duration
    • Annual leave and pay
    • Statutory holidays and pay
    • Sick leave and pay
    • Notice period of employment termination
    • Disciplinary guidelines and grievance procedures
    • Any specific rules or other company rules

Statutory Contributions

ItemDetailEmployer ContributionEmployee ContributionGovernment Contribution
Social SecuritySocial security benefits12.5% – 15%5% – 11%2.50%
Mandatory Medical InsuranceMedical benefits for employees under visa sponsorship of the employerAccording to the plan chose by the employer––
Unemployment Insurance ProgrammeApplicable to employees of private sectors and public sectors–Base salary ≤16,000 AED, 5 AED per month; Base salary > 16,000, 10 AED per month.–
 TotalAbout 12.5% – 15%About 5% – 11%About 2.5%

Minimum Wage

There is no legal requirement of minimum wage in UAE. Wages can be negotiated between employers and employees.

Public Holidays

The National Public Holidays in UAE in 2025 is shown as following. Please refer to the government announcement.

Holiday Name Date
Gregorian New Year 1 January 2025
Eid al-Fitr Holiday 29 March 2025
Eid al-Fitr 30 March 2025
Eid al-Fitr Holiday 31 March 2025
Eid al-Fitr Holiday 1 April 2025
Arafah Day 5 June 2025
Eid al-Adha 6 June 2025
Eid al-Adha Holiday 7 June 2025
Eid al-Adha Holiday 8 June 2025
Hijri New Year 26 June 2025
The Prophet’s Mohammed Birthday 4 September 2025
Commemoration Day 1 December 2025
National Day 2 December 2025
National Day Holiday 3 December 2025

Working Hours

Normal Working Hours

  • Not exceed 8 hours per day, 48 hours per week.
  • The daily working hours for certain industries or certain categories of employees may be increased or decreased according to special business requirements in accordance with the regulations of the Ministry of Labour and Social Affairs.

  • Normal work hours are reduced every day during Ramadan:

    1. Daily work hours are reduced by 2 hours per day during Ramadan, which means the working hours per day shall not exceed six hours. However, wages shall be paid as normal without any deduction.
    2. Working hours may be further reduced for strenuous or harmful works.
  • The commuting time spent by employees from their residence to work location is not counted as working hours, except for certain categories of employees as defined by the Ministry of Labour and Social Affairs.
  • Under a flexible working schedule, employees can complete work scheduled by the employer according to the work situation and work requirements. This involves working hours or working days according to the requirements of the company. The law may define any other form of work pattern.
  • If an employee requests to work remotely, either inside or outside the UAE, the employer can approve the employee’s application and set the employee’s working hours accordingly.

Rest Time

  • Daily rest time:

    • Working hours should not include any break for rest or for a meal allowed by the employer. No employee may work more than five consecutive hours without at least one or more breaks for rest, meals, and prayers, amounting in the aggregate to not less than one hour.
    • Employees are entitled to a rest period of no less than 11 consecutive hours in every 24-hour period.

  • Weekly rest time:

    Employees are entitled to no less than one paid rest day per week as stipulated in the labour contract and work regulations / laws. The government may also increase the number of weekly rest days upon the adoption of a resolution.

Night Work

  • The night working hours are between 10:00 pm one day and 4:00 am the next day, an employee should grant additional overtime pay if he or she performs night work.
  • Female employees (except those working in medical institutions) are not allowed to work between 10:00 pm one day and 7:00 am the next day.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.

  • Overtime restriction:

    Except in case of force majeure or to prevent huge losses, serious accidents, or to eliminate or mitigate consequences, employees’ daily overtime shall not exceed 2 hours. The total working hours of employees in every 3 weeks shall not exceed 144 hours.

  • Overtime pay:

    • Should the work circumstances require the carrying out by the employees of work for more than the normal working hours, the employee shall be paid 1.25 times the ordinary hourly rate.
    • Overtime performed during night working hours (between 10:00 pm one day and 4:00 am the next day), the employee shall be paid 1.5 times the ordinary hourly rate.
    • Overtime performed during rest days, the employee shall be entitled to a time-off-in-lieu, or 1.5 times the ordinary hourly rate as overtime pay.
  • If an employer requires an employee to work on a statutory holiday (with the right to have full pay or partial pay), the employer must provide the employee with a time-off-in-lieu or 1.5 times the ordinary hourly rate. If a statutory holiday falls on a weekend, the employer can only pay overtime pay as compensation to the employee.
  • Employees with managerial, supervisory etc. positions are not entitled to overtime pay.

Summer Midday Break Policy

  • Summer midday break is generally from middle June to middle September every year due to the high temperatures during the summer seasons in the UAE (The specific date is according to the announcement of the Ministry of Labour and Social Affairs), outdoor workers should not work under the sun between 12:30 pm and 3pm.

    • Daily working hours are divided into two shifts, morning and night.
    • Employers are required to provide outdoor workers with a shaded area during the rest period.
  • Employers who contravene this policy are liable to a fine of 15,000 AED.

Other Regulations

Employment Type

The law allows employers and employees to agree on different types of employment:

  • Full-time (permanent): Employees under this type of employment are full-time and work for one employer.
  • Part-time: Employees under this type of employment work specific number of hours or days for one or more employers.
  • Temporary: Employees under this type of employment work for a specific work task within a specific time period and are notified upon completion of such task.

Employment Record Keeping

Employers are required to maintain correct and continuous employment records during employees’ life cycle, including but not limited to, at his or her main work location:

  • Working hours records
  • Salary records
  • Payroll records etc.

Probationary Period

  • According to the announcement of the Ministry of Labour and Social Affairs in UAE, employees should be employed for a probationary period not exceeding six months.
  • The employee may not be employed by the same employer for more than one probationary period.
  • If the employee successfully passes the probationary period and continues to work, the probationary period shall be counted as his or her service period.

Leave

Statutory leaves in UAE (private sectors) include:

TypeApplicable ToDetails
Paid Annual LeaveEmployees who have served for one yearAt least 30 days. Employees who have served for more than 6 months but for less than one year: two-day paid leave per month.
Pregnancy and Maternity LeaveFemale Employees60 days
Breastfeeding TimeFemale Employees1-2 times, no more than 1 hour/day (Within 6 months after returning to work after completed the maternity leave)
Parental LeaveAll Employees with children under 6 months5 days
Sick LeaveRegular EmployeesNo more than 90 days
Education LeaveEmployees who have served in private sectors for two years10 days for students studying at accredited institutions in the UAE
Pilgrimage LeaveMuslim employeesNo more than 30 days
Bereavement LeaveAll Employees

Death of spouse: 5 working days

Death of parents, children, siblings, grandparents, grandchildren: 3 working days

Termination and Compensation

Termination Notice

  • During the probationary period, the employer may terminate the service of employment by providing a writing notice at least 14 days in advance, at least 30 days in advance if the employee will join another UAE company. In addition, the employer has the right to require the new employer to pay the hiring costs of the employee.
  • After the probationary period, a written termination notice is required whether the employer or the employee wishes to terminate the employment contract. The notice period should be no less than 30 days and no more than 90 days.

Compensation

Compensation for wrongful dismissal
  • If an employee is unlawfully dismissed by his or her employer, the court may require the employer to pay him or her compensation. The court shall consider the type of work, and the degree of damage caused to the employee, as well as the length of service and an investigation of his or her working conditions when assessing compensation. In all cases, the amount of compensation shall not exceed the total salary of the employee for three months, calculated based on the last salary payment of the employee.
  • This compensation cannot replace the notice period or payment-in-lieu instead of the notice period.

Gratuity

  • Full-time foreign employees, who have been employed for one year or more, are entitled to receive severance pay upon leaving the company.
Length of Service Gratuity
< 1 year –
≥ 1 year，< 5 years 21 calendar days’ base salary for every year of work.
> 5 years 30 calendar days’ base salary for every year of work.
  • If the employment period of the temporary employee is less than one year, no gratuity is payable.
  • Part-time employees are entitled to a pro rata basis of gratuity in accordance with the agreement with their employers.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with the UAE’s regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with financial obligations in the UAE.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to the UAE’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with the UAE’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in the UAE

Unlock your growth potential with BIPO’s Employer of Record service in Brazil. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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