Hiring Employees in Dubai: Legal Requirements for Businesses
Hiring employees in Dubai comes with specific legal requirements that every business owner must follow. Whether you are setting up a new company in the UAE or expanding your workforce, understanding the laws will help you stay compliant and avoid penalties.
Understanding UAE Labor Laws
Before hiring employees in Dubai, it’s crucial to understand the UAE labor laws governed by the Ministry of Human Resources and Emiratisation (MOHRE). These laws regulate contracts, wages, working hours, and employee rights.
Key Legal Requirements for Hiring Employees in Dubai
1. Obtaining a Business License
Before you can hire employees, your company needs a valid trade license from the relevant authority, such as the Department of Economic Development (DED) or a free zone authority.
2. Employment Contracts
Every employee hired in Dubai must have a legally binding employment contract. The contract must outline salary, benefits, job role, and contract duration. Both the employer and employee must sign the agreement.
3. Work Permits and Visas
Employers must secure a valid work permit and employment visa for foreign employees. This process involves applying for an entry permit, undergoing medical tests, and obtaining a UAE residence visa.
4. Salary Protection System (SPS)
As per UAE labor laws, companies must pay salaries through the Wages Protection System (WPS). This ensures employees receive their wages on time through regulated banking channels.
Employee Rights and Responsibilities
Working Hours and Leave
The standard working hours in the UAE are 8 hours per day or 48 hours per week. Employees are entitled to paid annual leave, sick leave, and end-of-service benefits.
End-of-Service Gratuity
Employees who complete 1 year of service are entitled to end-of-service gratuity, calculated based on their basic salary and tenure.
Compliance and Penalties
Failure to comply with UAE labor laws can result in penalties, fines, or visa bans. It’s essential to ensure that all hiring processes meet legal requirements.
For more detailed guidelines, visit the UAE Government Portal.
Also, explore our guide on Best Free Zones in UAE for Business Setup.
