Dubai is a city that attracts many expatriates from around the world to work and invest. The authorities have introduced several programs to encourage foreign investors to invest in Dubai's economy and obtain a residence visa. One of these programs is the Golden Visa, which allows foreign investors to reside in Dubai for an extended period. In addition, Dubai is also known for offering advantageous employment contracts for foreigners who wish to work in the country. In this article, we will take a closer look at Golden Visas and employment contracts in mainland Dubai. Some people ask themselves these questions: "I hold a Golden Visa and have just been hired by a company registered in mainland Dubai. What are my employer's obligations regarding my employment contract and my identity/visa documents? What about my end-of-service benefits?" In our article, we have taken care to provide you with a complete and detailed explanation of the subject discussed, so that you can gain a complete and in-depth understanding of the matter addressed.
Residence visa: the Golden Visa for foreigners in Dubai
The Golden Visa is a long-term residence visa program introduced by the Dubai government in 2019. This visa is intended for foreign investors and highly qualified professionals seeking to reside in Dubai for an extended period. The program is open to all foreigners who meet the eligibility criteria, including entrepreneurs, investors, senior professionals, and retirees. The Golden Visa is issued for a period of 5 or 10 years, depending on the visa conditions. The program is intended to encourage foreign investment and strengthen Dubai's economy. Golden Visa beneficiaries can enjoy many benefits, including access to quality healthcare, education for their children, banking services, and easier travel between Gulf countries.
Can I be hired in mainland Dubai while holding a Golden Visa in the United Arab Emirates?
A company registered in mainland Dubai can hire a person who holds a Golden Visa. Golden Visa holders are permitted to work and reside in the United Arab Emirates without needing a local sponsor, which makes it easier for them to find employment in the country. However, the company must comply with the laws and regulations of the Emirati government regarding hiring, work visas, and residence permits for foreign workers. Employment law in the United Arab Emirates is governed by:
- Federal Decree-Law No. 33 of 2021 on the regulation of labor relations (the "Employment Law");
- Cabinet Resolution No. 1 of 2022 concerning the implementation of Federal Decree-Law No. 33 of 2021 on the regulation of labor relations (the "Cabinet Resolution No. 1 of 2022").
The company must apply for a Golden Visa holder permit from the ministry (MoHRE). To obtain this permit, you must submit the required documents to your future employer, namely your passport, an identity photo, and a copy of your Golden Visa, and your employer will handle the application with MoHRE. The employer's obligations toward an employee holding a Golden Visa are the same as those toward an employee holding a standard work permit. These obligations are listed in Articles 13 and 16 of the Employment Law. In addition, Golden Visa holders have different employment conditions:
- They may be exempt from applying for a work permit: "Subject to the provisions of Clauses (4) and (6) of Article (9) of the Employment Law, the ministry may exempt certain employees from obtaining a work permit under the following rules: the employee holds a Golden Visa.";
- They may receive a new work permit from another employer without risking a one-year employment ban in the event of termination without a valid contract. Indeed, Article 28(2)(d) of Cabinet Resolution No. 1 of 2022 clearly states: "Subject to the provisions of Article 50 of the Employment Law, if a foreign employee leaves work for an illegitimate reason before the end of the contract term, they may not be issued another work permit for a period of one year from the date of absence from work, except for Golden Visa holders."
End-of-service benefits
Gratuity, also known as end-of-service benefits, is calculated based on several factors, such as the employee's length of service and basic salary. For a Golden Visa holder working for a mainland company in Dubai, gratuity is calculated in the same way as for holders of a standard work permit. More information on calculating benefits is available here: https://ares-accounting.com/indemnites-de-fin-service-dubai/ Under the law, an employee who has completed one year or more of continuous service is entitled to a gratuity payment at the end of their employment contract. The gratuity payment is calculated as follows (Article 51, paragraph 2, of the Employment Law):
- 21 days of basic salary for each year of service during the first five years of employment;
- 30 days of basic salary for each year of service after the first five years of employment.
The basic salary used to calculate gratuity does not include housing, transportation, or any other benefits.
What to know about visas
Golden Visa holders may work only for companies registered in mainland Dubai. Free Zone companies are not authorized to employ Golden Visa holders. In summary, Golden Visa holders who wish to work for a mainland company in Dubai must have a valid employment contract with a company registered with MoHRE. Work permits must be sponsored by the employer and renewed regularly. It is important to familiarize yourself with the specific requirements and procedures to avoid any potential complications. If in doubt, we invite you to contact us by email at the following address: support@merritt.group.
