Dubai is the Middle East’s premier global business hub and one of the world’s most strategically connected cities. Zero personal income tax, world-class infrastructure, a large expatriate professional workforce, and unmatched air connectivity between Africa, Asia, and Europe make it the gateway market for companies bridging multiple regions. The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) add additional free zone frameworks that attract financial services, technology, and professional services firms. For global employers, compliant hiring in Dubai requires navigating Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), the Wage Protection System (WPS) administered by the Ministry of Human Resources and Emiratisation (MOHRE), end-of-service gratuity obligations, GPSSA pension contributions for UAE nationals, and Emiratisation (Nafis) quotas for qualifying private sector employers.
An Employer of Record Dubai provider registers with MOHRE, manages WPS-compliant payroll, sponsors employee residence visas and work permits, and handles the full employment lifecycle without requiring you to establish a local LLC, free zone company, or branch office in the UAE. Global Deployments operates through its own registered legal entity in Dubai, providing EOR, payroll, and PEO services to international clients across the Middle East from day one.
The Legal Framework for Hiring in Dubai
Private sector employment across the UAE, including Dubai, is governed by Federal Decree-Law No. 33 of 2021, which replaced the former Federal Law No. 8 of 1980 and took effect in February 2022. The law covers employment contracts, working hours, leave entitlements, termination, end-of-service benefits, and Emiratisation obligations. Enforcement sits with MOHRE, and labour disputes for mainland companies are referred to the MOHRE conciliation process before escalation to the courts.
All employment contracts for mainland Dubai must be registered with MOHRE on MOHRE-approved standard templates. Fixed-term contracts are the default contract type under the 2021 law, with a maximum duration of three years and the option to renew. All contracts are automatically treated as fixed-term; indefinite contracts are no longer issued under the current framework, though existing pre-2022 indefinite contracts remain valid.
Every expatriate employee working in mainland Dubai requires a UAE residence visa and MOHRE work permit sponsored by the employer. The employer is responsible for initiating the visa and permit process, including immigration file registration and Emirates ID application.
Key Compliance Obligations for 2026
- WPS (Wage Protection System): All employers with five or more employees must pay salaries through WPS-approved banks and financial institutions by the agreed pay date. MOHRE monitors WPS compliance in real time. Late salary payment triggers automatic penalties, including a ban on new work permit applications and possible operational restrictions.
- MOHRE Registration and Labour Cards: All employees must hold a valid MOHRE work permit (labour card). Employers must register with MOHRE before hiring and maintain active registration throughout the employment relationship.
- GPSSA for UAE Nationals: UAE nationals employed in the private sector are covered by the General Pension and Social Security Authority (GPSSA) scheme, not by the end-of-service gratuity system. Employer and employee contributions apply at rates that vary based on the employee’s registration date (see table below).
- End-of-Service Gratuity (Expatriates): Expatriate employees who complete at least one year of continuous service are entitled to a statutory end-of-service gratuity on termination, calculated on basic salary only. The gratuity must be paid within 14 days of contract termination.
- Emiratisation (Nafis): Private sector companies with 50 or more employees are required to meet UAE national hiring quotas under the Emiratisation programme, currently increasing at a target rate of 2% of skilled positions per year. Non-compliance attracts financial penalties (AED 96,000 per unfilled Emiratisation position per year as of 2026).
- Probation Period: The maximum probation period under Federal Decree-Law No. 33 of 2021 is six months. During probation, either party may terminate the contract with 14 days’ notice (employer) or one month’s notice if the employee is moving to another UAE employer.
Income Tax and Payroll Tax Framework
The UAE does not impose personal income tax on employee salaries or wages. There is no PAYE system, no employee income tax withholding obligation, and no employee social security contribution for expatriate workers. Corporate tax on business profits was introduced in June 2023, but this applies to the company, not to individual employees.
| Tax / Contribution | Rate | Applies To |
| Personal Income Tax | 0% | All employees (nationals and expatriates) |
| Employee Social Security | 0% | Expatriate employees |
| GPSSA (UAE Nationals, post-Oct 2023) | Employee 11%, Employer 15% | UAE nationals registered after 31 Oct 2023 |
| GPSSA (UAE Nationals, pre-Oct 2023) | Employee 5%, Employer 12.5% | UAE nationals registered before 31 Oct 2023 |
| Government GPSSA Top-Up | 2.5% | Where UAE national salary is below AED 20,000 |
End-of-Service Gratuity (Expatriate Employees)
End-of-service gratuity is the primary statutory benefit for expatriate employees. It accrues from the first day of employment and is payable on any form of contract termination, including resignation, once the employee has completed a minimum of one year of continuous service.
| Service Duration | Gratuity Accrual Rate |
| First 5 years of service | 21 calendar days of basic salary per year |
| Beyond 5 years of service | 30 calendar days of basic salary per year |
| Maximum total gratuity | Capped at 2 years’ total basic salary |
Gratuity is calculated on the employee’s last drawn basic salary. Housing allowance, transport allowance, and other recurring payments are excluded from the gratuity base. In the DIFC, the DIFC Employee Workplace Savings (DEWS) scheme applies instead: employers contribute 5.83% of basic salary per month for employees with under five years of service, and 8.33% for those with five or more years, into a regulated savings plan managed by an approved trustee.
Work Standards and Leave Entitlements
Federal Decree-Law No. 33 of 2021 sets the standard working week at 48 hours (8 hours per day, 6 days per week), though many private sector employers operate a 5-day, 40-hour week by contract. During Ramadan, working hours are reduced by 2 hours per day for Muslim employees. Overtime beyond contractual hours is compensated at 125% of the ordinary hourly rate, rising to 150% for overtime worked between 10pm and 4am.
- Annual Leave: 30 calendar days of paid annual leave per year after completing 12 months of continuous service. Employees who have completed more than six months but less than one year are entitled to 2 days of leave per month. Unused annual leave must be paid out as part of the final settlement on termination.
- Sick Leave: Up to 90 calendar days of sick leave per year after the probation period. The first 15 days are at full pay, the next 30 days at half pay, and the final 45 days are unpaid. Medical certification from an approved health authority is required.
- Maternity Leave: 60 calendar days of maternity leave: 45 days at full pay and 15 days at half pay. Applicable from the first day of employment with no minimum service requirement. An additional 45 days of unpaid leave may be granted for medical complications related to pregnancy or childbirth. Where a newborn is diagnosed with a disability or illness requiring continuous care, the mother receives an additional 30 days of paid leave, extendable by a further 30 days unpaid.
- Paternity Leave: 5 working days of paid paternity leave, to be taken within six months of the child’s birth, either consecutively or intermittently.
- Bereavement Leave: 5 days for the death of a spouse, parent, child, or sibling; 3 days for other relatives.
- Study Leave: 10 working days per year for employees enrolled in an accredited UAE educational institution who have completed at least two years of service.
- Public Holidays: The UAE observes approximately 14 public holidays per year, including UAE National Day (2 to 3 December), Eid Al-Fitr, Eid Al-Adha, and Islamic New Year. Precise dates for Islamic holidays are confirmed annually by the UAE government. Work on public holidays is compensated at the ordinary rate plus 150%.
Termination and End of Service
- Notice Period: Federal Decree-Law No. 33 of 2021 prescribes a minimum notice period of 30 days and a maximum of 90 days, as specified in the employment contract. During probation, the employer must provide 14 days’ notice to terminate. If an employee on probation resigns to join a new UAE employer, one month’s notice is required.
- Termination by Employer: An employer may terminate a fixed-term contract before its expiry for legitimate operational reasons, with payment of the remaining term’s salary as compensation if termination is without just cause, in addition to accrued gratuity and outstanding leave pay.
- Termination by Employee (Resignation): An employee who resigns from a fixed-term contract before expiry without just cause may be subject to a compensation claim equivalent to 45 days’ wages, unless the contract provides otherwise or the MOHRE determines otherwise through conciliation.
- Arbitrary Dismissal: If MOHRE or the courts find that an employer terminated an employee arbitrarily (without valid reason), the employee is entitled to compensation of up to three months’ total salary, in addition to end-of-service gratuity and all other dues.
- MOHRE Dispute Resolution: Labour disputes must first be submitted to MOHRE for conciliation. If conciliation fails within two weeks, the case is referred to the competent court. This two-step process is mandatory before judicial proceedings can commence.
Why Use an Employer of Record in Dubai
Setting up a mainland LLC or free zone entity in Dubai requires share capital, local sponsorship in some structures, commercial licensing, and ongoing regulatory compliance across multiple authorities. For companies that need one or a handful of employees in the UAE, the setup cost and administrative burden are disproportionate.
Global Deployments holds an owned legal entity in Dubai and acts as the legal employer for international clients building a UAE workforce. The full employment, MOHRE registration, WPS payroll, visa and work permit sponsorship, gratuity accrual, GPSSA registration for UAE nationals, and Emiratisation compliance cycle is managed directly by Global Deployments’ in-country Dubai team, under one engagement, with onboarding delivered in as little as 48 hours.
Global Deployments | Part of Africa Deployments Ltd. Address: The Strand, Beau Plan Business Park, Mauritius BRN: C19167158 | VAT: 27738392 global-deployments.com | Phone: +23057138629
Conclusion
Hiring compliantly in Dubai in 2026 requires active management of MOHRE registration and work permit sponsorship, WPS-compliant salary processing, end-of-service gratuity accrual and settlement within the 14-day statutory deadline, GPSSA contributions for UAE national employees, and Emiratisation quota compliance for qualifying employers. The Ministry of Human Resources and Emiratisation (MOHRE) at mohre.gov.ae is the definitive regulatory authority governing private sector employment in the UAE. An Employer of Record partner with an owned entity in Dubai removes the entity requirement and manages the full compliance stack, so your Dubai team is onboarded, sponsored, paid, and legally protected from day one.