Hire in United Arab Emirates

Typical time to hire

1-2 weeks for contractor, 2-4 weeks for full-time (visa processing adds 2-4 weeks)

Entity requirement

Mainland LLC (requires local service agent for non-GCC nationals) or free zone entity. Free zones offer 100% foreign ownership.

EOR available

Yes — from $399/employee/month through a Corpshore entity

Contractor of record

Yes — from $39/worker/month

Standard workweek

40-48 hours (8 hours/day; government sector moved to 4.5-day week in 2022)

Maximum weekly hours

48 hours

Minimum annual leave

30 calendar days after 1 year (2 days/month during first year)

Public holidays

10 per year

Maternity leave

60 days (45 at full pay + 15 at half pay)

Paternity leave

5 working days (within 6 months of birth)

Notice period

30 days minimum (both employer and employee). Contract may specify up to 3 months.

Severance

End of service gratuity: 21 days basic salary per year (first 5 years) + 30 days per additional year. New DEWS (DIFC) and alternative savings schemes being introduced.

Probation

Up to 6 months

Overtime rules

25% premium (normal overtime), 50% premium (overtime between 10pm-4am). Friday overtime: 50% premium.

Income tax range

0% (no personal income tax)

Corporate tax

9% (effective June 2023, on taxable income above AED 375,000)

Social contributions

UAE nationals only: 5% employee + 12.5% employer (Abu Dhabi) or 5% + 15% (other emirates). No contributions for expatriates.

VAT / GST

5% (introduced 2018)

Tax year

Calendar year or financial year

Treaty network

Over 130 tax treaties

Worker classification

New Labour Law (Federal Decree-Law No. 33 of 2021, effective February 2022) modernised employment relations. Freelancer visas available in some free zones.

Data protection

Federal Decree-Law No. 45 of 2021 (Personal Data Protection Law). Free zones (DIFC, ADGM) have separate data protection regimes aligned with international standards.

Right to work

All foreign workers require a work permit and residence visa sponsored by an employer. Free zone employment has separate licensing. Golden visa for investors, entrepreneurs, and skilled professionals.

Non-compete

Enforceable under Article 10 of the Labour Law. Limited to 2 years, specific geography, and must protect a legitimate interest. Courts assess proportionality.

Collective bargaining

Trade unions are not permitted under UAE law. Ministry of Human Resources handles labour disputes. Wage Protection System (WPS) ensures salary payments.

WPS (Wage Protection System) mandates electronic salary payments through approved channels. UAEFTS handles interbank transfers. AED is pegged to USD. Stripe and Wise support AED.

• No personal income tax makes the UAE attractive for high earners
• 2022 Labour Law introduced fixed-term contracts as the default (replacing unlimited contracts)
• Free zones (DIFC, JAFZA, DMCC, Abu Dhabi Global Market) each have distinct rules and benefits
• Dubai and Abu Dhabi are regional hubs for MNCs serving the Middle East, Africa, and South Asia