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Expanding your business operations and hiring employees in Dubai and the United Arab Emirates (UAE) can offer a host of advantages. The region presents a strategically beneficial location, serving as a gateway between East and West, offering access to a vast and diverse market. UAE’s rapidly growing economy, powered by sectors such as trade, logistics, tourism, real estate, and finance, provides a robust platform for business growth. Moreover, the UAE government is highly supportive of business and economic development, offering incentives like free trade zones, where businesses can enjoy 100% foreign ownership, zero tax, and minimal import-export duties. The infrastructure in Dubai and the wider UAE is world-class, including advanced technology and digital facilities, transport networks, and logistic hubs, which can boost business productivity and efficiency.
Here we set out the key things you need to know when hiring employees in Dubai and the UAE.
When hiring employees in Dubai, several legal requirements and guidelines are set forth by the UAE Labour Law and the Ministry of Human Resources and Emiratisation (MOHRE). Below are some of the key legal requirements:
These are general requirements. Depending on the sector in which your business operates, there might be additional legal considerations. Therefore, it’s advisable to seek legal counsel or HR advisory to ensure full compliance when hiring in Dubai.
The cost of hiring employees in Dubai can vary significantly depending on a range of factors, including the industry, the role, the level of experience required, and whether the employee is a UAE national or an expatriate.
Here are some general costs that you should consider:
These are just a few examples and the actual costs could be different based on the specific circumstances of the role and the company. It’s also important to remember that the cost of living in Dubai is relatively high, which can influence salary expectations.
Hiring employees in Dubai can be done through various means. Here are some of the key ways you can go about it:
Remember, each of these methods has its own advantages and disadvantages, and the best approach depends on your specific needs, resources, and business context. It’s often useful to use a combination of methods to attract a diverse range of candidates.
Here’s a basic step-by-step guide to hiring employees in Dubai:
Remember, hiring in Dubai involves understanding and complying with local labor laws, so it’s advisable to seek local legal counsel or HR advisory services to ensure you’re meeting all requirements.
Hiring employees in Dubai and the UAE means having a details understanding of employment regulations, market conditions, and specific cultural factors that impact on employment in Dubai. To streamline hiring in Dubai many companies will benefit from a Dubai PEO or Dubai EOR solution.
Yes, it's mandatory for all employers in Dubai to provide health insurance for their employees. The Dubai Health Authority requires all employers to provide a basic level of health coverage for all workers. The level of coverage may vary, but basic health needs must be met.
As per the UAE Labour Law, the probation period can be a maximum of six months. However, the exact length of the probation period may be less, and should be stated in the employment contract. During this period, both the employer and the employee can terminate the contract without notice or end-of-service benefits.
As per the UAE Labour Law, an employment contract can be terminated in several ways, including by mutual agreement, at the end of a fixed-term contract, or by one party unilaterally under certain conditions. The party initiating the termination usually has to provide notice of 30 days, but this can vary depending on the contract. If the employer initiates the termination, they may need to provide end-of-service benefits, known as a gratuity, which is calculated based on the employee's salary and length of service. It's crucial to follow the legal process for termination to avoid potential disputes or legal issues.