Mehan brings you the leading 7 processes of employee hiring in UAE. Keep reading if you are new to the UAE business world.
Mehan brings an exciting topic for today’s discussion. We will explore how hiring in UAE takes place and what are some key considerations.
This article is for established entities in the UAE excluding the free zones; (DIFC) Dubai International Financial Centre and (ADGM) Abu Dhabi Global Markets.
We will elaborate on employee hiring in UAE and various aspects of UAE employment laws like:
- Residency visas and work permits
- Standard form employment contracts and work safe practices
- Term of employment contracts
- Probation periods
- Salary and end-of-service gratuity
- Termination procedures
- Governing law and dispute resolution
- Opportunities and advantages of doing business in the UAE
The United Arab Emirates has evolved as a well-known destination for businesses looking to develop a regional presence. With several jurisdictions and more than 40 free zones, the UAE offers a diverse business landscape for you.
However, this can be quite challenging for foreign businesses that are unfamiliar with employment laws and hiring in UAE. We agree! It must be quite tough for you initially. Don’t worry! To help you navigate the intricacies of UAE employment practices, Mehanhas brought this amazing piece of information today.
We are about to discuss some key considerations while operating in the UAE business market, so be ready!
You will be able to gauge the key opportunities and advantages that this dynamic region offers by the end of this discourse. What are you waiting for? Let’s start by discussing hiring practices in the UAE one by one!
- Residency Visa and Work Permits:
UAE is a country with a significant expatriate workforce. The government requires the employers to sponsor foreign nationals for residency visas and work permits.
Employers also facilitate the visa process in UAE, while complying with the necessary procedural requirements, health checks, and security screenings. This enables foreign employees to reside legally and work in the UAE.
- Standard Form of Employment Contracts:
The use of standard form employment contracts is common practice of hiring in UAE. The ‘’Ministry of Human Resources & Emiratisation’’ has published a standard form employment contract for companies operating outside of free zones. The individual free zones have their own contracts tailored to their requirements and scope.
While these contracts cover essential provisions, still some basic customization is required. Personalizing official contracts is a general practice, especially in senior employee hiring in UAE, where employers and employees enter into more formal and detailed agreements.
- Term of Employment Contracts after Hiring in UAE:
The concept of unlimited-term employment contracts has been removed according to the recently updated labor law. Instead, employers and employees mutually agree upon the duration of fixed-term contracts that can be renewed for a similar or shorter time frame. This flexibility enables corporations to adapt to changing business trends and requirements while providing stability to both the parties.
- Probation Period:
The maximum employee probation period in the UAE is 6 months. During this time, either party can terminate the employment contract with notice according to the new Labor Law.
This provision ensures fairness and allows both employers and employees to decide whether they are suitable for each other or not.
- Salary and End-of-Service Gratuity:
Compensation packages in the UAE typically comprise a base pay coupled with multiple allowances. The basic salary forms the foundation for determining end-of-service gratuity, while employers get to decide the allocation of allowances.
This flexibility allows companies to structure compensation according to their specific requirements. Always remember, once agreed upon in an employment contract, organizations cannot reduce or adjust the basic salary and allowances themselves.
- Termination at Will and Dispute Resolution:
The UAE Labor Law does not permit termination of employment at will, unlike in some jurisdictions. Termination must be based on proper grounds and in case of wrongful termination, employees may seek compensation through the UAE courts.
Mehan suggests that it is important for employers to understand the legal requirements of termination and sustain positive employee relations in the UAE.
- Governing Law and Dispute Resolution:
In UAE, all official employment contracts are enforceable by UAE laws and are subject to UAE courts. In any case of dispute, UAE courts have jurisdiction and will apply local laws as per the requirements. It is vital for employers to be aware of this and strictly comply with all UAE employment laws and regulations.
Summing it Up!
As companies continue to explore global business opportunities, the UAE stands out as a promising destination for developing regional operations. According to Mehan, by familiarizing themselves with the overall process of hiring in UAE, employers can assertively navigate the corporate panorama.
