Hiring Employees in the UAE

Legal Requirements for Hiring

• Written Employment Contract: Must be in Arabic (plus another language if needed) and registered with MOHRE; must include job details, salary, hours, benefits, leave, probation (max 6 months), and termination terms.
• Work Permits / Visas:
  • Employers must obtain a valid work permit via MOHRE—12 different types exist (full-time, part-time, temporary, juvenile, domestic helper, golden visa, etc.).
  • Application steps: trade license, establishment card, MOHRE quota, employee documents, medical examination, Emirates ID, work permit and residency visa.
  • Digital/AI-driven permit issuance is now enabled via MOHRE’s upgraded platform.

Working Hours & Salary

• Working Hours: Up to 8 hours/day or 48 hours/week; reduced by 2 hours/day during Ramadan; 1 hour break after 5 consecutive hours; at least one weekly rest day.
• Salary Payment:
  • Must be paid at least monthly through MOHRE’s Wage Protection System (WPS). All private sector companies registered with MOHRE must comply with Wage Protection System (WPS) requirements. However, specific regulations govern certain exemptions for free zone entities.
  • Employer cannot delay or deduct payments arbitrarily; wages must be on time.

Hiring Foreign Employees

• Employer obligations:
  • Cover recruitment costs, visas, medical expenses, accommodation, uniform, medical insurance, and travel costs.
  • Contracts must match pre-arrival job offer.
  • Cannot retain workers’ passports—illegal confiscation prohibited.
  • Employees can change employer after 6 months if consent or legal grounds (unfair treatment, unpaid salary) apply.
• Midday Outdoor Ban: From June 15 – Sept 15 (12:30–15:00), outdoor work prohibited to protect labourers.

Employee Rights & Benefits:

• Equal Pay: Women must receive equal wages for equal work.
• Health & Safety: Employers must ensure safe working conditions, provide health insurance, protective gear, and prevent occupational hazards.
• No Forced Labor/Discrimination: Law prohibits forced labour, discrimination (gender, race, religion, nationality), harassment, bullying, and exploitation of minors (<15 years) .
• Housing & Meals: For certain worker categories (e.g., domestic, construction), employers must provide suitable accommodation, and three daily meals.
• Unemployment Insurance: Since 2023, eligible employees may receive up to 3 months’ compensation if terminated (subject to minimum 12 months in scheme and Termination should not be due to disciplinary action as per Article 39 of Federal Decree Law).
• End of Service Benefit (EOSB) / Optional Savings: Employers must pay gratuity; an optional savings scheme is available instead.

Unemployment Insurance in the UAE

• As of 1 January 2023, all employees in the federal government and private sector (including most free-zone employees) must enroll in the Involuntary Loss of Employment (ILOE) scheme – also known as Unemployment Insurance.
• Exemptions: Investors (company owners), domestic helpers, temporary/part-time workers, juveniles under 18, and pensioners employed after retirement.

Types of Insurance (ILOE Categories):

• Category A: Basic salary ≤ AED 16,000/month → premium ~ AED 5 + VAT/month.
• Category B: Basic salary > AED 16,000/month → premium ~ AED 10 + VAT/month
  Employees choose their category based on contracted basic salary.

Coverage Details:

• Duration: Up to 3 consecutive months per claim, cumulatively up to 12 monthly payments over whole career
• Benefit Amount: 60% of average basic salary over the previous 6 months.
• Max AED 10,000/month for Category A
• Max AED 20,000/month for Category B

Eligibility Conditions:

• Must have paid premiums for 12 continuous months.
• Must claim within 30 days of job termination.
• Must not have resigned or been dismissed for disciplinary reasons.
• Must remain in the UAE during claim; benefit stops if re-employed or exit country.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of the UAE employment laws and regulations, please visit the official governmental websites.

Updated on: November 2025