Hiring an employee in Dubai mainland requires adherence to specific legal and regulatory frameworks. This process is particularly complex when hiring foreign nationals. Below, we will explore the detailed steps involved in hiring an employee in Dubai, focusing on key requirements and best practices.

Visa Quota

The first step in hiring an employee in Dubai is to apply for approval of their visa quotas through the Ministry of Human Resources and Emiratisation (MOHRE). The quota is determined based on the size of the office and its operational capacity. This means that the number of foreign employees a company can sponsor is contingent upon its established quota. Understanding this quota is crucial for employers to effectively plan their hiring strategies.

Labor Approval

Before proceeding with the employee hiring process, companies must obtain labour approval from MOHRE. This approval confirms that the company’s request aligns with the labour market needs of the UAE. It is a critical step that must be completed prior to issuing any employment offers.

Offer Letter

An offer letter serves as a preliminary agreement between the company and the prospective employee. It should include several essential components:

• Job Title and Role: Clearly define the employee’s responsibilities and expectations. This helps prevent misunderstandings regarding job functions.
• Compensation Package: Provide detailed information on salary, bonuses, and any additional benefits, such as accommodation or transportation allowances.
• Benefits and Entitlements: Include mandatory information about health insurance, annual leave, and sick leave, all of which are stipulated under UAE labour law.

 Labor Contract

The labour contract must specify the following:

• Work Style: Whether the work is full time, or part-time.
• Working Hours: Typically, the standard working hours in the UAE are eight hours a day or 48 hours a week, although there are exceptions for certain sectors.
• Term: The term of the employment contract, i.e. for how long the contract is valid for.
• Job Title
• Salary and Allowances
• Other Main Terms: Probation period, leave allowances, etc.

Entry Permit

Once labour approval is granted, an entry permit is issued, allowing the employee to enter the UAE. This is an essential document that enables the prospective employee to begin their transition to working in Dubai.

Residency Visa and Medical Examination

After arriving in the UAE, the employee must complete a medical examination. This examination includes blood tests and chest X-rays to screen for contagious diseases such as tuberculosis, HIV, and hepatitis. If any serious health conditions are detected, the employee may be deemed unfit for work, leading to a potential denial of the visa.

Upon clearing the medical examination, the employee can apply for a residency visa, which is necessary to finalize the employment visa process. The entire process can take several weeks, depending on the specific case and jurisdiction.

The Emirates ID, issued by the Federal Authority for Identity and Citizenship, is crucial for various daily activities in Dubai, including opening a bank account, signing a rental lease, and accessing healthcare services. The process of applying for an Emirates ID begins after the residency visa is stamped.

Work Permits

While hiring an employee in Dubai mainland, companies must apply for a labour card through MOHRE, which acts as the employee’s work permit. This permit outlines the nature of the work and the legal status of the employee within the UAE.

Accommodation Requirements

Under UAE labour law, companies are required to provide accommodation or a housing allowance, particularly for lower-paid workers. Employers must ensure that the accommodations meet the living standards set by UAE authorities.

Visa Renewals

Timely renewal of employee visas is critical. Failure to renew an employee’s visa on time can result in substantial fines or legal complications. The renewal process typically mirrors the initial application and involves updating medical tests, Emirates ID, and residency permits. Employers must actively monitor expiration dates to maintain compliance.

End-of-Service Benefits

End-of-service gratuity is a significant part of employee compensation, calculated based on:

• Basic Salary: Only the basic salary is considered for gratuity, excluding allowances.
• Years of Service: Employees who have worked for more than one year are entitled to gratuity, calculated as 21 days of basic salary for each of the first five years and 30 days for every additional year thereafter.
• Resignation or Termination: The calculation of gratuity differs depending on whether the employee resigns or is terminated.

Health Insurance

Providing health insurance is mandatory for all employers in Dubai. The coverage must include both inpatient and outpatient care, maternity services, and emergency treatment. Employers may also offer that dependent family members are covered under a similar plan.

Professional Assistance

The process of hiring an employee in Dubai mainland involves multiple steps that require careful adherence to local laws and regulations. From securing labour approval and preparing offer letters to ensuring compliance with health and safety regulations, each stage is crucial for creating a successful hiring strategy. By understanding and following these steps, companies can effectively navigate the hiring landscape and build a talented, compliant workforce in Dubai. Corplex offers a comprehensive solution to simplify the entire hiring process. Their team provides end-to-end support, including visa processing, labour contract drafting, and compliance with Emiratization policies, helping your company focus on growth while ensuring regulatory compliance.