Key Insights on Hiring in the United Arab Emirates (UAE)

Here are some essential considerations when hiring in the United Arab Emirates

1. Employment Contracts

Common Types of Employment Contracts:

  • Unlimited-Term Contracts
  • Fixed-Term Contracts
  • Part-Time Contracts
  • Temporary Contracts
  • Freelancer/Consultancy Agreements

2. Probationary Periods

Overview: Legally permitted and widely applied.

Typical Features:

  • Maximum of 6 months
  • Minimum 14 days’ notice required by either party during probation
  • If employee resigns to join another UAE employer, 1 month’s notice is required
  • No end-of-service gratuity during probation, but employees retain:
    • Access to health insurance
    • Protection from discrimination
    • Wage protection under WPS (Wage Protection System)

3. Rights and Duties of Workers

Employee Rights Include:

  • Timely and full payment of wages
  • Access to health insurance (mandatory for employers to provide)
  • Maximum working hours and overtime pay
  • 30 days of paid annual leave after one year
  • End-of-service gratuity (after 1 year of continuous service)
  • Protection from unfair dismissal and arbitrary termination
  • Safe and healthy working environment
  • Equal pay for equal work (anti-discrimination laws apply)

 

Employee Duties Include:

  • Adhere to work duties and job description
  • Maintain confidentiality
  • Respect UAE laws, Islamic customs, and workplace policies
  • Avoid conflicts of interest
  • Observe safety and discipline at work

4. Leave Entitlements

Statutory Leave Includes:

  • Annual Leave
  • Sick Leave
  • Maternity Leave
  • Paternity Leave
  • Parental Leave
  • Compassionate/Bereavement Leave
  • Hajj/Umrah Leave

5. Taxation and Social Security

Overview:

The United Arab Emirates maintains a structured regulatory and social protection framework to support economic stability and workforce welfare. While the UAE does not impose personal income tax, employers are required to comply with mandatory contributions such as end-of-service benefits, pension schemes for eligible UAE and GCC nationals, and other statutory obligations to ensure employee rights and benefits are upheld. In summary:

  • No personal income tax for employees
  • Social Security Contributions apply only to UAE/GCC nationals
  • Expats are not subject to social contributions but must be registered under Wage Protection System (WPS)
  • Corporate Tax

 

Penalties for Non-Compliance:

  • Fines for late wage payments (under WPS)
  • Visa/work permit violations can result in heavy penalties
  • Employer blacklisting for repeated labor law breaches
  • Legal actions by MOHRE or relevant Free Zone authority