Employer of Record UAE: what’s the best in 2024?

In recent years, the United Arab Emirates (UAE) has cemented its status as a premier business hub, attracting a diverse range of companies from around the globe. Navigating the intricacies of employing staff in this dynamic region can present unique challenges. This is where an Employer of Record (EOR) in UAE becomes indispensable. As an EOR, I facilitate seamless workforce management for businesses intending to operate within the UAE without establishing a legal entity.

I understand the legal framework and labor practices in the UAE and ensure that companies comply with local labor laws, visa requirements, and employment regulations. By managing the administrative and financial aspects of employment, I enable businesses to focus on their core activities while ensuring a compliant and efficient operation in the UAE.

Key Takeaways

• Acting as an Employer of Record in UAE offers legal compliance and simplified HR operations for foreign companies.
• Local expertise in labor laws and employment regulations ensures successful workforce management.
• Businesses can recruit and operate in the UAE without the need to establish a legal entity.

Employer of Record UAE: what’s the best in 2024?

When setting up operations in the UAE, an Employer of Record (EoR) can be an invaluable HR partner, helping to navigate the complexities of local labor laws and employment regulations. Each EoR provider offers a unique set of services designed to simplify the process of hiring and managing staff in the UAE.

Deel: Ideal for businesses seeking a comprehensive solution with various contract types and extensive support throughout the employment lifecycle while ensuring full compliance with UAE labor laws. While offering a seamless platform for hiring and payments and providing a compliance framework tailored to UAE labor laws, Deel may be costly for small businesses with limited budgets, and its features can be overwhelming for those new to EoRs.

Multiplier: Suitable for businesses expanding quickly into new territories including the UAE and needing a straightforward platform for onboarding and payroll management. While simplifying the process of employing staff in multiple countries including the UAE and offering a clear interface to manage overseas employees, Multiplier’s services may be more generic and less tailored to UAE-specific nuances, and some custom HR solutions may not be available.

Remote: A good choice for businesses prioritizing compliance and having a larger budget to support their global HR needs in the UAE. While providing a robust platform for managing a global team with a local presence in the UAE and ensuring employees are hired in full compliance with UAE regulations, Remote’s service may be more expensive compared to other EoRs and might offer more services than what a small-scale company requires.

OysterHR: Best for small to medium-sized companies valuing simplicity and transparency in their HR operations within the UAE. While having a user-centric design accessible for users of all tech levels and focusing on transparency in pricing and processes, OysterHR may lack the bespoke services that come with niche EoRs and might not support very large enterprises as effectively.

Remofirst: An economical choice for startups and smaller businesses that are cost-conscious but still require a reliable EoR service for their UAE operations. While offering competitive pricing structures and optimizing user experience for convenience, Remofirst’s relatively new presence in the market may raise concerns about industry experience, and there might be limited reviews or case studies available for UAE-specific scenarios.

Rippling: Well-suited for businesses looking to integrate IT management with their HR systems and willing to invest in an expansive, automated platform for their presence in the UAE. While offering a unified management system by combining EoR services with a wider HR and IT platform and reducing manual HR work through automated processes, Rippling’s wide range of features may be more than what is necessary for some businesses, and its pricing may not be the most competitive for the services provided.

Deel

Core Functions:

• Streamlines the contract process for global employees and contractors.
• Manages payroll, benefits, and compliance within the UAE.

Pros:

• Offers a seamless platform for hiring and payments.
• Provides a compliance framework tailored to UAE labor laws.

Cons:

• May be costly for small businesses with limited budgets.
• Features can be overwhelming for those new to EoRs.

Summary: Ideal for businesses looking for a comprehensive solution with various contract types and extensive support throughout the employment lifecycle while ensuring full compliance with local laws.

>> Find everything you need to know about Deel on their website.

Multiplier

Core Functions:

• Facilitates international hiring without setting up a local entity.
• Handles local employment contracts, payroll, and tax filings.

Pros:

• Simplifies the process of employing staff in multiple countries including the UAE.
• Offers a clear interface to manage overseas employees.

Cons:

• Services may be more generic, less tailored to the UAE-specific nuances.
• Some custom HR solutions may not be available.

Summary: Suitable for businesses expanding quickly into new territories including the UAE and needing a straightforward platform for onboarding and payroll management.

>> Find everything you need to know about Multiplier on their website.

Remote

Core Functions:

• Specializes in international employment with full EoR services.
• Ensures legal and tax compliance in the UAE.

Pros:

• Provides a robust platform for managing a global team with a local presence in the UAE.
• Strong focus on ensuring employees are hired in full compliance with UAE regulations.

Cons:

• Service may be more expensive compared to other EoRs.
• It might offer more services than what a small scale company requires.

Summary: A good choice for businesses that prioritize compliance and have a larger budget to support their global HR needs in the UAE.

>> Find everything you need to know about Remote on their website.

OysterHR

Core Functions:

• Offers hiring, payroll, benefits administration, and legal compliance.
• Local expertise in the UAE employment landscape.

Pros:

• OysterHR has a user-centric design, making it accessible for users of all tech levels.
• Focuses on transparency in pricing and processes.

Cons:

• May lack the bespoke services that come with niche EoRs.
• Might not support very large enterprises as effectively.

Summary: Best for small to medium-sized companies that value simplicity and transparency in their HR operations within the UAE.

>> Find everything you need to know about OysterHR on their website.

Remofirst

Core Functions:

• Streamlines the hiring of full-time employees in the UAE.
• Manages payroll, taxes, and benefits for UAE-based employees.

Pros:

• Offers competitive pricing structures.
• User experience is optimized for convenience.

Cons:

• Relatively new to the market, which may raise concerns about industry experience.
• Limited reviews or case studies available for UAE-specific scenarios.

Summary: An economical choice for startups and smaller businesses that are cost-conscious but still require a reliable EoR service for their UAE operations.

>> Find everything you need to know about Remofirst on their website.

Rippling

Core Functions:

• Combines EoR services with a wider HR and IT platform.
• Provides onboarding, payroll, and benefits management in the UAE.

Pros:

• Integration of HR and IT services offers a unified management system.
• Automated processes reduce manual HR work.

Cons:

• The wide range of features may be more than what is necessary for some businesses.
• Pricing may be not the most competitive for the services provided.

Summary: Well-suited for businesses looking to integrate IT management with their HR systems, and willing to invest in an expansive, automated platform for their presence in the UAE.

>> Find everything you need to know about Rippling on their website.

Understanding Employer of Record in UAE

As an expert in the field, I aim to provide a comprehensive overview of the Employer of Record (EOR) services in the UAE and its associated benefits.

Defining Employer of Record (EOR)

An Employer of Record, commonly referred to as EOR, is a legal service provided by third-party organizations that effectively hire and manage employees on behalf of other companies. In the UAE, EOR services are particularly valuable due to the complex local employment laws and the necessity for compliance with the regulatory environment, especially in Dubai, which is a vibrant business hub in the Middle East. By partnering with an EOR, companies can navigate these complexities and operate with employees in the UAE without establishing a legal business entity.

The key responsibilities of an EOR in the UAE include:

• Legal employment of staff on behalf of the client company
• Management of HR functions such as payroll, taxation, and benefits
• Ensuring compliance with local labor laws and regulations
• Mitigation of legal and compliance risks

Benefits of Using EOR Services

EOR services in the UAE offer numerous advantages that serve to streamline the process of managing overseas employees. Companies leveraging EOR services ensure compliance with local employment laws, which is particularly crucial in the rapidly developing legal landscape of the Middle East.

The advantages of utilizing EOR services in the UAE include:

• Legal Compliance: Keeping abreast with UAE’s employment regulations without the need for a physical presence.
• Efficiency in Hiring: Rapid onboarding of employees in Dubai and elsewhere in the UAE, allowing companies to scale operations quickly.
• Cost Savings: Reducing the necessity for a local entity, which can be cost-prohibitive.

Overall, EOR services empower companies to focus on core business activities while entrusting employment and HR logistics to specialized service providers.

Legal Framework in UAE

The UAE legal framework is critical for the operation and regulation of businesses, particularly for employers of record. It is essential to understand the specifics of the UAE Labor Law, adherence to compliance and regulations, and the nuances of local laws across different emirates such as Dubai.

UAE Labor Law Overview

The UAE Labor Law prescribes rules for workforce management, encompassing various aspects of the employment relationship. Key features include provisions for working hours, leaves, and end-of-service benefits. Employers must draft contracts in accordance with the law and ensure that the Employment Contracts are compliant with the Ministry of Human Resources and Emiratisation (MOHRE) guidelines.

Compliance and Regulations

I observe strict compliance with all applicable regulations to avoid legal repercussions and maintain sound business practices. Entities must align their operations with the Wages Protection System (WPS), which ensures that salaries are paid promptly and securely. Moreover, the law mandates suitable work conditions and protection against discrimination.

Understanding Local Laws

Local laws in the UAE can vary between different emirates, including Dubai. As someone knowledgeable about the intricacies of these variations, I advise acquainting oneself with the requirements of Free Zones and onshore jurisdictions, which have distinct legal frameworks. Understanding these can influence the decision of setting up a legal entity in the UAE — whether it is a Limited Liability Company (LLC) or a Foreign Branch Office.

My grasp of the legal practices in the UAE confirms the paramount importance of thorough due diligence for compliant business operations.

Workforce and Labor Practices

In managing workforce and labor practices, I consider compliance with the UAE labor regulations to ensure proper working hours, fair compensation for overtime, and adherence to holiday entitlements, as well as health and social security benefits for employees.

Standard Working Hours and Overtime

The standard working hours in the UAE are 8 hours per day or 48 hours per week. For my employees working beyond the standard hours, overtime pay is calculated at 125% of the normal pay rate on weekdays and 150% during weekends. During the month of Ramadan, these hours are often reduced.

Public Holidays and Paid Leave

My employees are entitled to public holidays, which can vary each year but generally include National Day, New Year, and religious observances such as Eid. Employees also receive 30-calendar-day annual leave after completing one year of service. I ensure compliance with this provision for uninterrupted rest periods.

Health Insurance and Social Security

It is mandatory for me to provide health insurance to my employees in the UAE. This is enforced across many emirates, including Dubai and Abu Dhabi. Additionally, participation in the UAE’s social security scheme is compulsory, offering pension and end-of-service benefits. Maternity leave is granted for 45 days with full pay, while sick leave is provided for up to 90 days, the first 15 days fully paid.

Contracting and Employment Lifecycle

In my experience handling employment frameworks within the UAE, I’ve observed that a meticulous approach to crafting employment contracts and managing the employee lifecycle — from onboarding to termination — is crucial for compliance with local labor laws and for ensuring a transparent work relationship.

Drafting Employment Contracts

When drafting employment contracts, it’s essential to be concise yet comprehensive. The contract must include the role’s responsibilities, salary, benefits, working hours, and the probation period, which typically does not exceed six months as per UAE Labor Law. It’s also important to specify the contract’s duration — whether limited or unlimited — and conditions for renewal. Ensuring contracts align with the UAE’s labor law safeguards both employers and employees.

• Role & Responsibilities: Clearly defined within the contract.
• Salary & Benefits: Must include agreed upon wages and any additional benefits.
• Working Hours: As per labor laws, usually 8 hours/day or 48 hours/week.
• Probation Period: Maximum six months, during which termination can occur with lesser notice.
• Contract Duration: Specify if limited (fixed-term) or unlimited (open-ended).

Onboarding Process

The onboarding process is where HR plays a pivotal role in familiarizing new hires with company policies and their new role. During this time, employees undergo training and are introduced to the team. A well-structured onboarding program can reduce turnover and improve job satisfaction.

• HR Involvement: Orientation and paperwork management.
• Training: Job-specific training and familiarization with company culture.
• Team Integration: Introductions and initial engagements with colleagues.

Termination and Severance

Termination processes must comply with UAE labor laws, which stipulate notice periods and justifications for termination. Severance pay is calculated based on the period of service, provided the employee has completed at least one year of continuous service. Handling termination respectfully and lawfully is essential to maintaining a positive company reputation.

• Notice Periods: As per contract, subject to labor law regulations.
• Justifications: Valid reasons for termination as recognized by the Labor Law.
• Severance Pay: Calculated based on the length of continuous service.

Financial and Administrative Aspects

In my role as an Employer of Record (EOR) in the UAE, I am responsible for ensuring that financial and administrative tasks like managing payroll and taxes, as well as handling payments and currency, are meticulously taken care of. My expertise in these areas ensures compliance with local laws and smooth operations for businesses expanding into the UAE.

Explore ‘What is employer of record’ to learn more about this topic.

Managing Payroll and Taxes

As part of my financial responsibilities, I manage payroll for employees comprehensively. This involves calculating gross wages, subtracting all necessary deductions, and determining net pay. Payroll management is a delicate practice, and here is a breakdown of how I manage it:

• Salaries: Calculating accurate wages based on hours worked and contractual agreements.
• Deductions: Withholding the correct amounts for the mandatory UAE pension schemes and health insurance.
• Taxation: Applying and managing the appropriate taxation; although the UAE does not levy personal income tax on wages, compliance with corporate taxes is essential.

Personal income tax does not apply in the UAE, but thorough understanding of other applicable taxes ensures I navigate the financial landscape effectively.

Handling Payments and Currency

Managing payments involves more than just transferring funds. I take a detailed approach to handling payments:

• Invoices: Ensuring that all invoices are accurate and paid on time to maintain good supplier relationships.
• Currency: Dealing with multi-currency transactions as required. Since the UAE dirham (AED) is pegged to the US dollar, I keep abreast of any developments that could affect this fixed exchange rate.

Currency fluctuations can be significant when dealing with international transactions, so my expertise provides stability and predictability for employers.

Employment Solutions for Global Business

In my capacity as a specialist in the field, I can attest that an Employer of Record (EOR) in the UAE is a pivotal solution for global businesses aiming to expand internationally and sustainably manage talent acquisition and retention.

Facilitating International Expansion

When it comes to expansion, global businesses face a maze of compliance regulations and administrative hurdles, especially in new foreign markets. I have seen firsthand how an EOR in the UAE simplifies this process. The EOR acts as the legal employer, handling legal compliance, employment contracts, and work permits. This removes the burden from the company’s shoulders, allowing them to focus on core business activities rather than spending valuable time on complex regulatory environments.

• Legal representation: The EOR provides local legal representation in the UAE, which is crucial for businesses to comply with local labor laws.
• Work permits and visas: With an EOR, securing work permits and visas becomes an efficient process, minimizing delays and ensuring the workforce is operational in a timely manner.

Talent Recruitment and Retention

Talent is the cornerstone of any business, and its recruitment and retention are magnified in importance when entering new markets such as the UAE. As I engage with businesses, I emphasize how an EOR supports global talent acquisition by offering competitive local employment packages that comply with local norms, which is key to attracting top professionals. Furthermore, the EOR helps maintain high retention rates by ensuring that employment practices align with local expectations, thereby fostering employee satisfaction.

• Recruitment: An EOR leverages local expertise to recruit top talent, ensuring that the global team is competitive and well-equipped.
• Benefits and compensation: Optimal benefits and compensation packages designed by an EOR align with the UAE market, which incentivizes talent retention.

Employing an EOR in the UAE allows companies to establish and grow their global team without establishing a local entity, thus providing a seamless solution for long-term international business success.

Additional Services and Support

In my capacity, I provide a suite of additional services ensuring comprehensive legal and HR support alongside robust intellectual property and data protection. These services are specifically tailored to the unique business landscape of the UAE.

Legal and HR Support

When operating in the UAE, I assist with navigating the complex legal framework. My expertise encompasses the nuances of UAE labor laws, which allows me to extend legal support that ensures compliance with local regulations. I further offer in-depth human resource services that cover recruitment, onboarding, payroll management, and termination procedures, creating a streamlined HR process.

• Compliance: Adherence to UAE employment laws and regulations.
• Employee Management: Support with visa sponsorships, work permits, and employee benefits.

Intellectual Property and Data Protection

Protecting your intellectual assets in the UAE is paramount. I provide specialized IP protection services to safeguard your trademarks, patents, and copyrights. I also help implement data protection strategies that align with the UAE’s stringent cyber laws, ensuring that your business maintains the highest standards of data security.

• Registration and Enforcement: Assistance with IP registration and legal remedies.
• Data Privacy: Guidance on the UAE’s data protection laws to prevent data breaches.

Frequently Asked Questions

In this section, I cover the most pressing inquiries regarding Employer of Record (EOR) services in the UAE, from legal compliance and salary management to visa acquisition and online management.

What are the legal requirements for utilizing an Employer of Record service in the UAE?

The UAE mandates that EORs must be licensed entities within the country and adhere to local labor laws. They must ensure contracts align with the UAE’s regulations, including end-of-service benefits and work hours.

How is salary typically managed by an Employer of Record in the UAE?

I manage salaries in compliance with local laws, including timely payments, wage protection system enrollment, and managing taxation where applicable, providing detailed payslips to employees.

What is the process for obtaining a visa through an Employer of Record in the UAE?

My visa sponsoring process involves obtaining necessary approvals, adhering to quota requirements, and ensuring all documentation complies with UAE immigration policies, facilitating a smooth application.

Can Employer of Record services in the UAE be managed online?

I enable online management of EOR services, offering platforms for document submission, employee onboarding, and payroll management, streamlining processes to ensure efficiency and accuracy.

What benefits can employees expect when hired through an Employer of Record in the UAE?

Employees can expect statutory entitlements like healthcare, end-of-service benefits, and annual leave. I ensure these benefits are duly administered according to the UAE labor laws.

What distinguishes Employer of Record services from co-employment in the context of the UAE?

In the UAE, EORs act as the primary employer on record, bearing full legal responsibility for employees, while co-employment involves shared responsibilities and liabilities between the EOR and the client company.