Employer Of Record UAE
Infotree Global Solutions provides the UAE Employer of Record services for companies who are looking to hire employees, manage HR and payroll in the UAE. No need to set up a branch office because all your business requirements will be taken care of by a dedicated team of professionals. They will do all the work in compliance with the local labor laws and help in running your global business smoothly and effectively.
Table of Contents
• Hiring in UAE
• Employment Compliance
• Employee Entitlements
• Payroll Tax in UAE
• Employment Laws in UAE
• Challenges when Expanding into UAE
• Benefits of Employer of Record UAE
• Why Infotree Global Solutions?
Hiring in UAE
The employment regulations in UAE depend on the structure and how the regulations are governed. The country is a federation of seven emirates, including around 45 different free zones with distinct taxes and customs rates. Complaint business contracts form the basis of business needs because the employment structure in the UAE is entirely regulated. Although a federal Labor Law exists in the country, there are different employment regulations for each Emirate and free zone. For instance, there are free zones such as Abu Dhabi Global Market and Dubai International Financial Centre that have different sets of employment laws that replace the UAE Labor Law. Getting a license and particular locations in free zones such as Dubai, Sharjah, Fujairah, Ras Al Khaimah, and Ajman and Umm Al Quwain can get you complete ownership of your company regardless of your type of business along with different sets of employment laws.
Our Employer of record service in UAE handles all your concerns of hiring international expertise. Let us take care of the administrative functions so that you can completely focus on your core business values. Avoid the maintenance risks of a local entity and make the process of saving costs much easier than ever before!
• Working hours
Weekly working hours in the UAE are maximum of 48 and daily no more than 8 hours. The working week starts from Sunday and goes to Thursday. Employees can not work for more than five hours consecutively without taking breaks for meals, prayer, and rest.
Offices in UAE remain closed on Friday and Saturday. However, private organizations set their workweeks. If an employee works on Friday, he/she may get either extra holiday during the next week or 50% increased pay for those working hours. Friday is fixed off but daily wage workers can work on Fridays but no more than two Fridays consecutively.
While hiring new employees, you must be aware of rules and regulations and updated compensation details. There is no rule of fixed minimum wage in UAE but it depends upon the level of education the employee is on and varies between 3000 AED to 5000 AED.
As per overtime rules, only two hours a day are allowed. Its compensation depends upon the time as if the work is performed between 9 p.m. and 4 a.m. the employee gets time and a half of salary. There should not be a delay of more than 10 days of the completed month salary of the workers in UAE. Typically, the employee is supposed to clear the dues once every 14 days.
• Probationary Period
A legal probation period is a maximum of 3-6 months in the UAE during which employers can terminate their employment without any notice. The employee is not entitled to any severance too in case the termination happens during the period. The experience is measured after the probationary time only.
• Termination and Severance
If the termination is due to a valid cause, an employer does not need to give any notice or compensation. Otherwise, an employee should receive 30 days written notice to terminate the contract. An employee is entitled to compensation from the employer along with gratuity. The UAE Labor Law allows employees to get “early termination compensation”.
After termination, whether the employee can get severance or not depends on the type of contract, the valid reason for termination, and the level of employees’ experience.
Neither the Employment Law nor the Labor Law determines any bonus offers for UAE employees. Most of the employers themselves decide the offers or schemes like an end-of-year bonus to remain competitive in the market.
The country does not have a standard minimum wage for the required party but there is a salary requirement depending on their education. Any UAE national without a high school certificate cannot earn less than 3000 dirhams per month. People with high school graduation can have a minimum wage of 4000 AED per month and employees with the college certificate are not eligible to earn less than 5000 AED per month. Overtime is another essential factor in the UAE compensation laws. Friday is a designated statutory holiday but any employee who works on the same day is entitled to an increase of 50% or more in pay or another day off.
• Maternity leaves
In UAE female employees are entitled to 45 days of paid maternity leave including time off before and after birth. However, female employees who have completed at least one year of consistent service receive full pay while those with less than a year are entitled to half pay.
Employees are entitled to two days of paid annual leave per month who have done more than six months of continuous service. However, those with 1 year or more of continuous employment get a vacation for up to 30 days. Employees are also entitled to paid leave for 10 public holidays but if any employee is required to work on one of these, famous be provided with compensatory leave and a 50% bonus of the daily wages.
• Sick leave
In UAE there is a provision for up to 90 days of sick leave for employees after 3 months of continuous service excluding the probationary period. The first 15 days are entitled to full pay and the next 30 days are at half pay. Thus, any sick leave after 45 days will be unpaid.
• Health Benefits
Health coverage insurance is legally required for everyone and to be paid for it in full. However, in certain Emirates, employers are required to cover the dependents up to specified limits.
• Other Benefits
Citizens of the UAE are eligible for pensions and related retirement benefits after the age of 49 or 20 years of employment. However, employees working in the UAE that belong to countries suggest Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman will be entitled to pension as set by their home countries.
Payroll Tax in UAE
When it comes to setting up payroll in the UAE, wages are the first factor to be considered. while there is no minimum wage in the country the UAE Labor law recommends the basic needs of an employee that must be met by the employer. It varies from level to level of education, but the employers must register with the Ministry of Human Resources and Emiratization it should be followed by subscription to the electronic salary transfer system. The employee wages must be paid through this transfer system and late or unpaid salary can result in heavy penalties.
In addition to this, there are specific rules for payroll and taxation in the UAE, which depend on whether your organization employs International or local employees. The country has little in the way of corporate tax as there is no individual income tax for employees, social security for ex-pats, no payroll tax, no statutory pension contributions for ex-pats, or withholding tax. In the UAE companies can go for various modes such as remote payroll, local payroll administration, internal payroll, or fully outsource payroll and employee management options.
Infotree Global Solutions takes care of all aspects of payroll and taxes for employees as your UAE Employer of Record, including taxes, withholding, social security payments, or any other statutory requirements for your company.
Employment Laws in UAE
As for the employment laws and contracts in the UAE, the relationship between an employer and employee is governed by the Federal Law of 1980, which relates to Labor relations. The ministry has established a Labor Department to provide easy access for dispute resolution and other labor affairs. However, the labor laws do not apply to employees working in the public sector, domestic workers in households. Written employment contracts are mandatory for compliance concerning the visa sponsorship of an employee in the UAE. They are also important for companies that are looking forward to hiring new employees.
It is important for these contracts to clearly indicate the respective rate of compensations, benefits, job position responsibilities, and any specific protocols on the termination of the employee. In some cases, the default laws are applicable irrespective of the stipulated employment contract while the same can be avoided by providing clear and distinct clauses in a contract. International businesses must use employment contracts and ensure their compliance with local labor laws.
Challenges when Expanding into UAE
If you are looking to hire your expert employees residing in UAE, you need to set up your local entity there. Thus, you are required to spend a lot of time, money, and effort by diverting your attention from the current business growth. You need to take risk of the branch and devote the attention from the core business values to hiring, payroll, employment, and benefits requirements for employees. Also, lack of funding can become your top hurdle while expanding in UAE for the purpose. However, if you find an eligible partner in the region who can act as an employer of record for you, you save everything. Therefore, you can reach us for seamless UAE employer of record solutions and focus on your employees’ productivity above the onboarding and administration processes. Contact us today to get in touch with the local experts who would manage your all HR needs.
Benefits of Employer of Record UAE
To simplify your expansion process let Infotree Global assist you to deal with all the complexities. Be it hiring employees or distributing payroll or taking care of expenses, we are there to assist you at every step. Partner with us and start your global business without worries.
• Market Access
Relying on the professional expertise of an Employer of Record is the best way to enter an unknown market quickly. By using Employer of Record services, an international organization can avail the expertise of UAE employees to work for its company. Besides quick access to the United Arab Emirates market, the EOR also enables the client to ease off worries related to payroll and HR.
• In Country Laws
It is hard to ignore the importance of regulations and compliance in a foreign country. If you are operating a business in UAE you need to be well-aware of the payroll and taxation rules. With UAE Employer of Record services, a company can hire a foreign individual or local employees and deal with the complexities of the country’s rules. Be it income tax, social security contribution, expanse management, withholding charges, or business tax, an EOR company takes care of it all with total compliance.
• Diverse Solutions
No matter whether you already have a company on an international location or you are going to establish the one, an employer of record can help you significantly. The EOR Company can hire staff on your behalf without having the need of setting up a branch in UAE. If your company is already operating, using EOR for managing payroll tasks can be a great idea as they can present an effective solution to tax and accounting responsibilities in the country.
Why Infotree Global Solutions?
Setting up a branch office or just a subsidiary in the UAE to assist with a micro-level team is a time-consuming and complicated process. There are stronger worker protections for labor law in the UAE that need greater attention and expert details to understand the best practices.
As an Employer of Record UAE, we take all the responsibility to make it a smooth and easy journey for you to expand into the UAE as we help you to hire your employees. We also offer customized end-to-end solutions to handle your HR matters to ensure that your practices comply with the regulations without suffering from the burden of establishing a foreign subsidiary or branch office hassle-free.
In addition to this, you get immense value and benefits including, but not limited to –
• Power-packed strategies and consultation to expand your business to the UAE. We will help you with proven and powerful strategies to expand your business in the UAE with proper Visa and regulation compliance from starting to the end.
• Easy onboarding and administrative activities for employment locally. We will also take care of payroll management systems and payments for all of your employees.
• We provide you with the supply of local benefits administration for recruitment expenses including employment arrangements.
• Hassle-free compliance with local laws and regulations so you don’t have to worry about any placement laws in the UAE for your recruitment needs.
• You also won’t have to stress about any additional payroll taxes. It can immensely save countless hours that go into processing and submitting taxes for each specific case and business operation.
If you wish to share your concerns or discuss any issues with us regarding solutions of UAE PEO Services, feel free to get in touch with us. An executive from our team will get back to you shortly and get all the details on your concern to understand your problems from your perspective!
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