Last Updated on January 12, 2023 by Hassan Abbas
The UAE gives businesses a thriving setting for success: stable macroeconomic and political conditions and a forward-looking government. Well-developed general infrastructure, as well as ICT infrastructure. Additionally, the country has continuously improved its regulatory system and is typically the top choice for conducting business.
In this year’s Arab Youth Survey, the UAE is ranked as the best Arab nation in terms of living security, safety, and economic opportunities, and the ability to start a business. Visit This Page for Leading Manpower Staffing Agency.
If you’re looking to expand their operations to Western Asia, hiring employees in the UAE could be the best option to explore and start with less risk; however, what are the important things to be aware of to reduce risks and cut costs?
Employment Requirements for Employees in The UAE
After establishing your business and obtaining the license, you must provide your employees with a sponsor. Following Article 13 of the UAE Labour Law, Companies are not permitted to employ non-nationals without prior permission from the Department of Labour and obtaining an employment permit.
When granting permission to work, The Ministry of Human Resources and Emiratisation examines the following factors:
The Department of Labour may not accept hiring non-nationals until it scrutinizes its records and ensures that there aren’t any foreign employees from the country who are employed in the employment section that cannot do the essential job.
The worker is legally in the country and has met the residency requirements in the UAE.
The worker should have the academic or professional qualifications required in the country.
1. You must establish a Legal Entity.
Establishing a legal entity and getting the required trade licenses usually takes between 8 and 12 weeks. The company cannot sponsor an employee’s visa during this time.
2. Expats will require a visa.
Particularly important is the transfer of Visa sponsorship for employees of Egypt and Iran currently. It can put clients in a crisis and should be handled with caution and diligence.
3. Financial Compensation
Compensation is usually paid at an easy fixed-rate (gross wage) or divided into 60/40, with 60% being the base salary with 40% of it being car and housing allowances. The amount is not inclusive of any variable compensation, such as commissions.
4. It is a different business week from other weeks.
Friday is the Friday holiday, and the majority of professionals are on leave the weekend of Friday as well.
5. Gratuity at the End of Service Needs to be considered in the overall Compensation.
Suppose hiring in the UAE Most clients do not remember to plan for the Gratuity for End of Service, which is mandatory and accrues as an employee-paid benefit.
Process of employee hiring
After your business has completed thorough research in finding and interviewing the ideal candidate for your job, It is vital to observe the strict laws regarding employment applicable throughout the UAE. In certain business sectors, there are specific legal obligations that employers must adhere to regarding their obligations to their employees.
Although it’s also true that certain sectors of business in the UAE can only employ a certain number of expats and have to hire some percentage of UAE nationals, in general, the UAE welcomes foreign investment and welcomes foreigners.
How does this process function? First, you need to get a job offer.
Suppose a business located in the UAE can employ foreign workers. The process of getting these cards is completed online and is simple.
The leading manpower staffing agency must provide employees with contracts and benefits. However, they must offer an official health card to each employee. The law on employment also sets the maximum hours of work per week, the amount of holiday time employees are entitled to, and if they get any other benefits, such as sick leave or maternity leave.
2. Accepting the Job Offer
In the private sector employees, an aspiring employee must be offered a formal job. They must then sign an employment contract and obtain a work permit and visa.
The letter of offer will include specific information about the job and an annex that summarizes the country’s key elements of labor laws. Both parties must sign the documents. Once the two parties have accepted an offer letter according to UAE law, it is an official agreement.
3. Making Changes
After both parties have signed the letter of offer, the employer cannot modify or substitute any clauses without the consent of both employers, and the employee has agreed to it.
4. Understanding the Offer
The employer must ensure that the prospective employee has read the contract and comprehended all its terms.
If it is later discovered that the employee was not having a clear understanding of the annexes before when they agreed to the agreement, then the company could face an AED of 20,000 (about five hundred dollars US) penalty from the Ministry of Human Resources and Emiratization (MoHRE) for sending in incorrect information.
Employers must also provide specific details regarding their offer letters to MoHRE.
5. Inking the Contract
The employment contract must be built on an offer letter. It is true whether the new employee comes into the UAE from a different country or has already resided in the UAE and is transferring between various UAE-based businesses.
Other Facts to Know About Labor Laws in the UAE
According to UAE laws on labor, an employee is allowed to be employed for a maximum of 8 hours per day and not longer than 48 hours one week. In certain areas, such as cafeteria employees as well as hotel employees and guards, employees are allowed to be required to work for nine hours a day.
As we’ve mentioned earlier, It’s important to note that salaries are a tiny portion of the overall remuneration package in this area. The housing allowance and travel expenses are considered normal to pay.
When an employer ends their contract with an expat employee, the employer is accountable for paying the entire expense of repatriation.
When you are done hiring for the UAE, you can now recruit foreigners within the UAE. The hiring process for international workers in the UAE demands employers submit an employment contract before the time they can apply for sponsorship of visas. Another essential step in hiring within the UAE is to file your employment contracts in Arabic.
Additionally, the contract should include the needed compensation provisions in the UAE. In addition, you must specify termination provisions within the agreement. One of the most important tips we can offer is to ensure that your contracts are presented in English also.
This way, if you have hired foreign hires, the employees can easily read the agreement and accept the clauses and terms.
Sunny Chawla is a Managing Director at Alliance Recruitment Agency. He specializes in helping client for international recruiting, staffing, HR services and Careers advice service for overseas and international businesses.
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