IRC HR SERVICES

Employer of Record (EOR) in UAE

Currency

Emirati Dirham – AED

Ease Of Doing Business

16

Population

9,516,871

Capital

Abu Dhabi

Language

Arabic

GDP Growth

3.9%

Summary

United Arab Emirates, federation of seven emirates along the eastern coast of the Arabian Peninsula.
The largest of these emirates, Abu Dhabi (Abū Ẓaby), which comprises more than three-fourths of the federation’s total land area, is the centre of its oil industry and borders Saudi Arabia on the federation’s southern and eastern borders.

The port city of Dubai, located at the base of the mountainous Musandam Peninsula, is the capital of the emirate of Dubai (Dubayy) and is one of the region’s most vital commercial and financial centres, housing hundreds of multinational corporations in a forest of skyscrapers.

The smaller emirates of Sharjah (Al Shāriqah), ʿAjman (ʿAjmān), Umm al-Quwain (Umm al-Qaywayn), and Ras al-Khaimah (Raʾs al-Khaymah) also occupy the peninsula, whose protrusion north toward Iran forms the Strait of Hormuz linking the Persian Gulf to the Gulf of Oman.

The federation’s seventh member, Fujairah (Al-Fujayrah), faces the Gulf of Oman and is the only member of the union with no frontage along the Persian Gulf.
Historically the domain of individual Arab clans and families, the region now comprising the emirates also has been influenced by Persian culture owing to its close proximity to Iran, and its porous maritime borders have for centuries invited migrants and traders from elsewhere. In the 18th century, Portugal and the Netherlands extended their holdings in the region but retreated with the growth of British naval power there; following a series of truces with Britain in the 19th century, the emirates united to form the Trucial States (also called Trucial Oman or the Trucial Sheikhdoms).  

Historically the domain of individual Arab clans and families, the region now comprising the emirates also has been influenced by Persian culture owing to its close proximity to Iran, and its porous maritime borders have for centuries invited migrants and traders from elsewhere.

In the 18th century, Portugal and the Netherlands extended their holdings in the region but retreated with the growth of British naval power there; following a series of truces with Britain in the 19th century, the emirates united to form the Trucial States (also called Trucial Oman or the Trucial Sheikhdoms).  

The states gained autonomy following World War II (1939–45), when the trucial states of Bahrain and Qatar declared independent statehood. The rest were formally united in 1971, with the city of Abu Dhabi serving as the capital.

The stability of the federation has since been tested by rivalries between the families governing the larger states of Abu Dhabi and Dubai, though external events such as the Persian Gulf War (1990–91) and an ongoing territorial dispute with Iran have served to strengthen the emirates’ political cohesion.

The emirates comprise a mixed environment of rocky desert, coastal plains and wetlands, and waterless mountains.

The seashore is a haven for migratory waterfowl and draws birdwatchers from all over the world; the country’s unspoiled beaches and opulent resorts also have drawn international travellers.

Standing at a historic and geographic crossroads and made up of diverse nationalities and ethnic groups, the United Arab Emirates present a striking blend of ancient customs and modern technology, of cosmopolitanism and insularity, and of wealth and want.

The rapid pace of modernization of the emirates prompted travel writer Jonathan Raban to note of the capital: “The condition of Abu Dhabi was so evidently mint that it would not have been surprising to see adhering to the buildings bits of straw and polystyrene from the crates in which they had been packed.”

Public holidays

Date Holiday name
January 1 & 2 New years’ day Holiday
April 20, 21, 22 & 23 Eid al-Fitr Holiday
June 27 Arafat Day
June 28, 29 & 30 Eid Al Adha
July 21 Islamic New Year
September 29 Prophet Muhammed Birthday
December 1 Commemoration day
December 2 & 3 National day holiday

Type of leave

Annual Leave

After passing six months of employment, employees are entitled to two days of paid leave for each month of the first year.
After the first year of employment,  an employee is entitled to 30 calendar days of paid leave annually,
as per the updated UAE Labor Laws

Public holidays

UAE recognizes 8 public holidays.

Sick days

An employee is entitled to a sick leave of not more than 90 days per year, only after the end of probationary period. The 90 days’ sick leave can be continuous or intermittent, and the salary is paid as follows: full pay for the first 15 days.

Maternity leave

A female worker is entitled to a maternity leave of 60 days, out of which: 45 days will be fully-paid leave. 15 days will be half-paid leave.

Paternity leave

The new article stipulates that a private sector employee be granted a paid parental leave for five working days to look after his baby, effective from the baby’s date of birth until he is 6 months old

Parental leave

Female employees in a permanent position in the federal government are entitled to 90 days’ maternity leave and male employees are entitled to 3 days’ paternity leave.

Employment termination

Termination process

In the UAE, an employer or an employee may terminate the job contract by serving a notice period as stipulated. This is in accordance with Article 43 (1) of the Employment Law, which states: “Either party to an Employment Contract may terminate the contract for good cause, by giving the other a notice in writing

Notice period

The worker shall perform his duties during the notice period agreed upon in the contract, provided that the notice period is not less than 30 days and not in excess of 90 days.

Severance pay

If a worker has served for more than 1 year but less than 5 years, he is entitled to full gratuity pay based on 21 days’ salary for each year of work. If a worker has served more than 5 years, he is entitled to full gratuity of 30 days’ salary for each year of work following the first five years.

Probation period

Article 37 of the UAE Labor Law states that the employee may be appointed for a probationary period not to exceed six months, and the employer may terminate the services of the employee during this period without giving notice or end of service remuneration.

Working hours

General working hours

Private sector workers are required to work 8 hours per day or 48 hours per week. During the holy month of Ramadan, working hours are reduced by 2. The UAE federal government has adopted a four and a half-day working week. Hence, employees work eight hours, from 7.30 am to 3.30 pm from Monday to Thursday, and from 7.30 am to 12.00 pm on Fridays. Saturdays and Sundays are the official weekends for the federal government sector.

Overtime

The employer may ask the worker to work overtime, provided the number of extra hours does not exceed two hours in one day. If the nature of the work requires the worker to work beyond the normal working hours, then he will be entitled to a pay equal to normal working hours’ remuneration (which is based on basic salary) plus 25 per cent of that pay. It could increase to 50 per cent if overtime is done between 10 pm and 4 am. This rule does not apply on workers who work on basis of shifts.

If the circumstances require the worker to work on his off-day, as specified in the labor contract, or work regulations, then the worker will be entitled to a substitute rest day, or to a pay equal to normal working hours’ remuneration (which is based on basic salary) plus 50 per cent of that pay.

Employee benefits

General employee benefits

Traditionally, most benefits used to fall under one of the four major types of employee benefits, namely: medical insurance, life insurance, retirement plans, and disability insurance.

Taxes

Corporate Tax

9 %

Individual Income tax

there is no applicable individual tax within the country.

VAT / GST

The standard VAT rate is 9%

VISA

UAE visa on Arrival

– 30-day visit eligibility:
If you are a passport holder of the below country or territory, no advance visa arrangements are required to visit the UAE. Simply disembark your flight at Dubai International and proceed to immigration, where your passport will be stamped with a 30-day visit visa free of charge.
Andorra, Canada, Japan, Malaysia, New Zealand, Singapore, USA, Australia, China, Kazakhstan, Mauritius, Republic of Ireland, Ukraine, Vatican City, Brunei, Hong King, Macau, Monaco, San Marino, Uk & Northern Ireland.
 
– 90-day visit eligibility:
If you are a passport holder of one of the below countries or territories, your passport will be stamped with a multiple entry 90‑day visit visa that’s valid for 6 months from the date of issue, and for a stay of 90 days in total. Citizens of the below European countries are also entitled to apply for a pre‑arranged visit visa if their 90‑day visa on arrival has been fully utilized.
Argentina, Barbados, Bulgaria, Costa Rica, Czech Republic, Estonia, Germany, Hungary, Kiribati, Austria, Belgium, Chile, Croatia, Denmark, Finland, Greece, Iceland, Latvia, Bahamas Islands, Brazil, Colombia, Cyprus, el Salvador, France, Honduras, Italy, Liechtenstein, Lithuania, Malta, Netherlands, Peru, Romania, San Marino, Slovakia, South Korea, Switzerland, Luxembourg, Montenegro, Norway, Poland, Russian Federation, Serbia, Slovenia, Spain, Uruguay, Maldives, Nauru, Paraguay, Portugal, Seychelles, Solomon Islands, Sweden
 
– 180-day visit eligibility:
If you hold a Mexican passport you’re eligible for a multiple entry 180‑day visit visa that’s valid for 6 months from the date of issue, and for a stay of 180 days in total.