Why Dubai?

  • Dubai's strategic location at the crossroads of East and West makes it a global business hotspot.
  • The World Bank ranks Dubai as one of the easiest places to do business in the Middle East and North Africa.
  • With a business-friendly tax regime and world-class infrastructure, Dubai is a magnet for international companies.

Hassle-free Compliance with e-square PEO & EOR

To thrive in the Dubai market, e-square's PEO & EOR solutions guide you through Dubai's labor laws and regulations. As the UAE Employer of Record, we handle responsibilities including income tax, payroll tax and tax returns with the Dubai Tax Office. Partnering with e-square Dubai PEO ensures efficiency and cost-effectiveness in your Dubai market venture.

Navigating Dubai's Labor Laws with Expertise

Dubai's employment laws promote fairness for both employers and employees. Key points include employment contracts, working hours, leave entitlements, termination and anti-discrimination policies. We're here to ensure compliance with these regulations.

Here are some key points to consider

Employment Contracts in Dubai-UAE

When you start a job in Dubai, your employer will provide you with a written document in both Arabic and English. This document outlines important information such as your job description, salary, working hours, leave entitlements and notice periods.

Working Hours and Leave

In Dubai, the standard workweek consists of 48 hours spread over six days. However, during the holy month of Ramadan, working hours are reduced to six hours per day. Employees are entitled to various types of leave, including annual leave, sick leave, maternity leave and others, as specified in the Labor Law.

Termination and Resignation

Terminating employment in Dubai follows specific guidelines outlined in the Labor Law. Employers must have valid reasons for termination and notice periods vary based on the length of service. Likewise, employees are also required to provide notice when resigning.

Discrimination and Harassment

Dubai's employment laws strictly prohibit discrimination based on factors such as gender, religion and nationality. Employers are responsible for maintaining a workplace free from harassment.

Employment of Expatriates

Dubai, being a diverse city with a significant expatriate population, requires expatriates to obtain a valid work permit, typically sponsored by their employer.

Employment Taxes in Dubai

One of the advantages of working in Dubai is the absence of personal income tax. This means employees do not need to pay income tax on their earnings. However, there are other taxes and fees that individuals and businesses may encounter.

Corporate Tax

In the UAE, businesses do not pay employer taxes, but they do contribute 8.3% toward the End of Service Benefit or Gratuity. Additionally, starting June 1, 2023, a 9% corporate tax will apply to businesses with profits exceeding Dh375,000, approximately USD 102,000.

Value Added Tax (VAT)

The UAE introduced a 5% VAT on certain goods and services in 2018. However, many essential items and sectors, such as healthcare and education, are exempt from VAT.

Social Security and Pension

For expatriates in the UAE, there is no mandatory social security system. UAE nationals, on the other hand, are entitled to social security benefits and pensions.

Harmonizing Compensation and Benefits in Dubai-UAE

Compensation Offer

The UAE does not have a set minimum wage for expatriates. UAE nationals, however, have a minimum wage based on their education level, ranging from 3,000 dirhams (AED) per month for those without a high school certificate to 5,000 AED for college graduates. Overtime work on Fridays typically earns a 50% wage increase.

Guaranteed Benefits in the UAE

Employees usually receive 30 days of annual leave. Female employees who have completed a year of service are entitled to 45 days of fully paid maternity leave, while sick leave can extend up to 90 days, with varying pay rates. Paternity leave of five days is available within six months of a child's birth. Employees can also take a one-time pilgrimage leave of 30 days without pay.

Health Insurance

In Abu Dhabi and Dubai, employers are required to provide health insurance coverage not only for their employees but also for their spouses and dependents. Various health insurance options are available, and many companies offer assistance with this benefit.

Frequently Asked Questions ?

What is the role of a PEO in Dubai?

A PEO handles HR tasks, payroll and benefits administration, allowing you to focus on your core business operations.

Can a PEO/EOR help with employee onboarding in UAE?

Absolutely. PEOs/EORs streamline the onboarding process for your new hires.

Are PEO and EOR services suitable for startups in Dubai?

Yes, PEO and EOR services are beneficial in Dubai for startups seeking to establish a robust HR and compliance foundation without investing in a full HR team.

How does an EOR ensure compliance with Dubai's labor laws?

An EOR specializes in local labor regulations, ensuring your workforce adheres to employment laws, tax requirements and more.

How do PEO and EOR services differ?

A PEO shares employment responsibilities, while an EOR assumes legal employment responsibility for your team.

A PEO shares employment responsibilities, while an EOR assumes legal employment responsibility for your team.

Loved by thousands of global

Global Countries EOR services

Request a demo from one of our global
employment experts

Book a Demo