United Arab Emirates

There are four routes to engaging talent in the UAE. HQ payroll typically isn’t viable; workers need a UAE employment visa and a contract registered with the Ministry of Human Resources and Emiratisation. Independent contracting is not recognised under UAE labour law. A local entity allows direct hiring but requires WPS payroll, visa sponsorship, and gratuity. An EOR enables compliant hiring in the UAE without a local entity.

Registering a company in the UAE typically takes several weeks, depending on entity type, required approvals, and whether the business operates on the mainland or in a free zone. The bigger workload comes after setup: issuing fixed-term employment contracts, sponsoring visas and Emirates IDs, providing mandatory health insurance, paying salaries through the Wage Protection System (WPS), end-of-service gratuity, and adhering to UAE labour law on hours, leave, and termination.

Independent contracting isn’t recognised under UAE labour law, all employment must be on fixed-term contracts of up to three years. If a worker is full-time and supervised by your company, UAE authorities may reclassify the engagement as employment, with statutory rights like end-of-service gratuity. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in the UAE.

HR compliance in the UAE means contracts, policies, and practices align with UAE labour laws under the Ministry of Human Resources and Emiratisation. It covers working hours, timely salary payments through the Wage Protection System (WPS), statutory benefits like medical insurance, end-of-service gratuity, and visa sponsorship, plus 30 days of annual leave and a 48-hour work week. Getting it right protects employee rights and reduces employer risk.

Employing someone in the UAE involves costs beyond salary. Employers must provide medical insurance, cover employment visa and Emirates ID fees, and budget for end-of-service gratuity (3 weeks of basic salary for every year of continuous service, increasing to 1 month of salary after 5 years). Repatriation costs may also apply. Use our salary calculator to estimate total employment costs.

Boundless is the legal employer of the individual, as far as the UAE government, tax, and employment authorities are concerned. We provide a locally compliant fixed-term contract, sponsor employment visas and Emirates IDs, run payroll through the Wage Protection System (WPS), and administer statutory benefits such as 30 days annual leave and end-of-service gratuity. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

When employing through an Employer of Record in the UAE, the EOR is responsible for handling compliance with local labour laws, including payroll, visa sponsorship, and statutory obligations. The UAE does not levy personal income tax, so employees do not pay income tax. Employers must still provide mandatory benefits such as medical insurance, end-of-service gratuity, repatriation costs, and statutory leave entitlements.

Boundless works with local employment partners and advisers in the UAE to ensure contracts and processes comply with local labour law, including fixed-term contract rules, visa sponsorship, health insurance, and Wage Protection System requirements. We discuss specific norms such as working hours, overtime, leave, end-of-service gratuity, and termination. When a sensitive issue arises, notice periods, dismissal, or repatriation, our team engages local specialists promptly.

When using an Employer of Record like Boundless in the UAE, the company manages day-to-day responsibilities such as supervision, workload, performance, and disciplinary matters. Boundless ensures compliance with local labour laws, including issuing compliant contracts, sponsoring visas and Emirates IDs, providing statutory benefits like medical insurance and end-of-service gratuity, and running payroll through the Wage Protection System (WPS).

Employees locally employed through an Employer of Record in the UAE receive identical rights and statutory benefits as direct hires, a locally compliant fixed-term contract, sponsored employment visa, and Emirates ID, mandatory health insurance, 30 days annual leave, sick leave, public holidays, end-of-service gratuity, and repatriation costs. Salaries are paid monthly via the Wage Protection System (WPS).