EOR Services In Dubai And The UAE

Employer Of Record (EOR) Services In The UAE

We focus on finding the right employee set for you (according to the skill-set requirement of your company) and coordinate with the Edge global HR services team. This enhances our EOR services' efficiency and makes hiring employees overseas easier.
Currency
United Arab Emirates Dirham (AED)
Languages
Arabic & English

Working Days
Monday to Friday

Working Hours
48 hours/week

Types of Employment Contracts
Fixed-Term & Unlimited Term Contracts

Probation Period
0 to 6 months

Payroll Cycle
Monthly

Payroll Tax
None

Hire and pay employees across the globe

Hiring a global team with a competent skill set can be quite challenging in a market such as the UAE. Talented employees are looking for suitable companies to accelerate their career growth. At the same time, there are several companies in search of talented workers who can relate to their vision. The problem lies in the execution of a streamlined recruitment process that can cater to both. This is what EOR service providers in Dubai and other emirates bring to the table.

Your Reliable EOR Provider In The UAE

Many companies are choosing to hire in the UAE with Edge, mainly because of the unmatched reliability and excellence of service we offer. We have worked with companies from almost all sectors. We have accompanied them in the process of establishing their presence in the UAE market while taking care of all their administrative, human capital management, payroll, and operational processes. Our professionals have also worked closely with companies who have made it big, and share these trade secrets and growth strategies with fresh companies to help them attain newer heights.

We focus on finding the right employee set for you (according to the skill-set requirement of your company) and coordinate with the Edge global HR services team. This enhances our EOR services’ efficiency and makes hiring employees overseas easier.

There are multiple benefits of utilizing an EOR solution tailored according to your needs. You are always in control of all EOR processes run by us, and we remain answerable to you for all our calls. Additionally, we conduct interim audits and submit the report of our findings to you, suggesting actionable steps to enhance the working environment. This can translate into massive sales growth and revenue in no time!

The Process Of EOR Services By Edge

Our EOR management process is streamlined to hire talent globally according to the local laws and regulations prevalent in a region.

We follow a five-point system for our recruitment process.

  1. Meeting and Shortlisting – We conduct a real-time or virtual meeting with your company’s management team to align ourselves with the company’s vision and growth plan. Based on our understanding, we forward these details to our EOR professionals who begin scouting and shortlisting potential employees for your UAE office. The shortlisted employees (including both residents and non-resident employees) are called for an in-person interview round.
  2. Technical Interview for Shortlisted Candidates – We conduct a comprehensive skill test for all candidates and select the most suitable employees for your organization.
  3. Orientation with Company Work Environment – All new employees are made to attend an orientation session with the management of your company, explaining to them the company’s motto, target milestones, and work environment.
  4. Enrollment of Employees with HR and Payroll Team – The employees are then incorporated into the HR and payroll management database. All payroll services (such as payslip generation) will be regularized starting next month.
  5. Employee Assistance – They are provided with all forms of assistance for relocation, visa, social security, tax compliance, and employment contracts.

We draft locally compliant employment contracts while keeping your company’s internal policies in mind.

Work Laws And Labor Regulations In The UAE

Understanding the existing work laws and labor guidelines in the UAE would enable you to appreciate all the intricate details required for an EOR team to keep in mind. Thus, the global team employees from an experienced third-party EOR service provider like Edge can offer more advantages than a naive, inexperienced in-house team.

Payroll Needs And Minimum Wages

  • Payroll Schedule: In the UAE, the customary payroll cycle is monthly, with salary disbursements typically occurring around the 25th of each month. However, certain companies may choose to adopt a bi-weekly or semi-monthly payment frequency.

At Edge, our global payroll processing services are at par with the highest international compliance and standards.

  • Minimum Wage: The UAE lacks a federal minimum wage policy. Instead, individual emirates may establish their own minimum wage standards. For instance, Dubai mandates a minimum wage of AED 3,500 monthly, whereas Abu Dhabi, while lacking a specified minimum wage, suggests a minimum basic salary of AED 1,200 per month.

Work Leave Allowances

Formal employees in the UAE are entitled to work leave under the categories of annual leave, sick leave, and paternal leave.

Type of Leave Criteria
Annual Leave Workers with a tenure of one year or more qualify for a minimum of 30 paid vacation days annually. Nevertheless, certain emirates may extend more generous vacation benefits. For instance, Dubai grants an extra 10 days of leave for every decade of service completed.
Sick Leave After completing a probationary period, employees usually have the right to paid sick leave. The duration and remuneration may differ based on emirate regulations and company policies. Mostly, employees are required to furnish a medical certificate for prolonged sick leave.
Parental Leave Female employees who have served for a minimum of one year are entitled to maternity leave, with the duration and payment rates subject to variation by the emirate. In Dubai, for instance, mothers receive 45 days of fully compensated leave, whereas in Abu Dhabi, they enjoy 60 days, with the initial 45 days fully paid and the subsequent 15 days at half pay. While some emirates provide paternity leave, the regulations vary.

National Holidays In The UAE

In the UAE, some of the national holidays are as (but not limited to) follows:

  • New Year’s Day is observed on January 1st annually.
  • Eid al-Fitr marks the end of Ramadan and is celebrated on varying dates determined by the Islamic lunar calendar.
  • Eid al-Adha, also known as the Festival of Sacrifice, commemorates Ibrahim’s willingness to sacrifice his son as an act of obedience to God. The Islamic lunar calendar determines its date.
  • The Hijri New Year, marking the Islamic New Year, falls on varying dates according to the Islamic lunar calendar.
  • Mawlid al-Nabi commemorates the birthday of Prophet Muhammad, observed on varying dates based on the Islamic lunar calendar.
  • The National Day celebrates the union of the seven emirates on December 2nd and 3rd annually.
  • Isra and Mi’raj commemorate the Night Journey and Ascension of Prophet Muhammad, observed on varying dates according to the Islamic lunar calendar.

There may be additional holidays observed at the discretion of individual emirates or based on religious and cultural practices.

Severance Pay

In the event of termination without fault following a minimum of one year of service, an employee is eligible for severance pay. The severance amount usually spans from 21 to 30 days’ wages per year of service, contingent on tenure and grounds for termination. Certain emirates may enforce distinct regulations or ceilings on severance compensation.

Termination of Employment Contract

Terminations may be instigated by either the employer or the employee. Both parties are obliged to adhere to designated procedures and furnish notice periods as mandated by law. Severance pay might be warranted under specific circumstances.

Overtime Compensation Rules

Extra work hours are generally remunerated at 1.5 times the standard wage for the initial two hours and double the standard wage for any subsequent hours. Nevertheless, particular regulations and exceptions may be applicable based on the emirate and the type of work.

More Services Available in United Arab Emirates

HR Consulting in United Arab Emirates
HR Consulting in United Arab Emirates
Business Process Outsourcing United Arab Emirates
Business Process Outsourcing United Arab Emirates
Payroll Outsourcing in United Arab Emirates
Payroll Outsourcing in United Arab Emirates

Hire the right way

Let our team handle all of the compliance and payroll on your behalf

Frequently Asked Questions

What is the cost of hiring a third-party EOR services in Dubai? How does it differ from employer of record services in Abu Dhabi?

The cost of hiring a third-party company to look after your EOR needs depends on many factors, such as:

  • Scope of services required
  • Number of employees in the workforce
  • Complexity of employment contracts
  • Requirement of company-specific services such as legal assistance
  • Additional integrated services

Generally, EOR services in Dubai may include handling payroll, compliance with local labor laws, visa sponsorship, employee benefits administration, and HR support.

The costs can be structured as a flat fee per employee or based on a percentage of the employee’s salary.

The differences between EOR services in Dubai and Abu Dhabi depend on local regulations, business environment, and administrative procedures specific to each emirate.

While both Dubai and Abu Dhabi follow federal labor laws set by the UAE government, there might be differences in licensing requirements, visa processes, and local regulations that could impact the cost and delivery of EOR services.

How to choose the right EOR partner in the UAE?

The right EOR partner in the UAE would offer you all the benefits of utilizing an EOR solution at a very low cost. This would help you manage internal company operations more efficiently and bring cost savings to the table. The valuable resources and capital saved in the process of outsourcing EOR services can be incorporated elsewhere within the company (such as monthly spending on performance marketing, R&D department for hardware or software solutions companies, etc.).

The EOR partner should have worked with multiple companies in different emirates of the UAE. This experience can help them better serve you.
Moreover, an experienced EOR service provider would be up-to-date with the local market conditions, cultural preferences, and UAE labor law compliance. All these can help you stay compliant and scale quickly in the UAE market. Your EOR partner should not merely be an outsourced company, but act as an extension of your core company, taking care of all operations and administrative needs.

One trick to evaluate the efficiency of various EOR services in Dubai, Sharjah, Abu Dhabi, and Ajman is to have a look at their current customer testimonials. If the majority of the companies they are serving are satisfied, then the company is a green flag.

What are the onboarding and offboarding challenges the EOR team needs to handle?

For employee onboarding and termination of contract, the employer of record (EOR) team can come across various challenges that they must tackle:

  • Drafting employment contracts – With all the nitty-gritty work laws and labor regulations prevalent in the UAE, it is sometimes quite challenging to draft locally compliant labor contracts. Also, the employment contract needs to be compliant with the internal policies of the company. It should also provide some room and flexibility for accommodating employee needs and specially requested perks.
  • Managing payroll and tax deductions – The payroll cycle, minimum wages, and tax deductions based on salary need to be updated regularly with changes in government policies and guidelines. The EOR team needs to adopt these changes quickly.
  • Termination of Employment Contract – Often, the reason for employment contract termination plays a major role in determining whether the employee is to receive severance or not. If yes, the EOR team ensures the settlement of all dues and compliance with the stipulated notice period. This simplifies the offboarding process and eases its impact on the overall company performance and growth.