Recruit and hire employees in Dubai

Hiring employees in Dubai can seem like a real challenge, especially for startups or companies from abroad. The cultural diversity and economic dynamism of this metropolis attract many talented individuals, but it is crucial to understand the specific features of the local labor market to successfully hire an employee. However, do not let the apparent complexity of the process discourage you! This article is intended as a practical guide to help you understand the essential conditions for hiring employees in Dubai. We will cover topics such as the different types of contracts, the legal obligations to comply with, and best practices for recruiting an employee. Whether you are a beginner entrepreneur or an experienced employer, this information will help you streamline your hiring process and position your company for success in the Dubai market.

Types of employment contracts for hiring

In Dubai, there were two main types of employment contracts: fixed-term contracts and indefinite-term contracts, in accordance with the labor code.

• Fixed-Term Contract: it is important to note the specific features of this type of contract in the context of a first hire. This type of contract is established for a specific period, generally one to three years, and must be clearly specified when hiring an employee. It is renewable, but the renewal conditions must be clearly stated.
• Indefinite-Term Contract: This contract has no expiration date, allowing the employer to plan for the long term. It is often preferred by employees because it offers greater long-term security.

Under the Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, known as the “UAE Labor Law,” which came into force on February 2, 2022, a worker may be hired under a fixed-term employment contract. This means that for each new employee you recruit, you can offer them the opportunity to commit to working with you for a period of two years, renewable thereafter, which is essential for a first hire.

Legal conditions to comply with regarding an employee

Before hiring employees in Dubai, it is essential to comply with the applicable labor laws. This includes obtaining permission to hire by submitting an application to the Ministry of Human Resources and Emiratisation (MoHRE), in compliance with the labor code. In addition, employers must take out health insurance by registering with the social security system, which provides benefits to employees in the event of illness, an accident, or unemployment, in accordance with the labor code. Finally, it is imperative to comply with Emiratisation rules, which impose a hiring quota for UAE citizens within your company.

Formalities and steps for hiring an employee

Hiring an employee in Dubai requires following several steps:

1. Drafting the Job Offer: ensure that the document complies with the requirements of the labor code. Create a clear and detailed job offer, including the responsibilities, required qualifications, and benefits offered, to attract the future employee.
2. Publishing the Offer: Publish the job offer on online recruitment platforms as well as professional social networks. We can also help you with your recruitment efforts, ensuring compliance with the pre-employment declaration.
3. Selecting Candidates: Review the applications received, conduct interviews, and select the candidates who best match your needs.
4. Issuing the Job Offer (job offer letter): this step is essential for the pre-employment declaration. Once the candidate has been selected, issue an official job offer containing the contract details and employment conditions.
5. Applying for a Work Visa: After the offer is accepted, you must apply for a work visa for the employee. This step involves specific documents, such as the employment contract and a copy of the passport, as well as providing the employee with a detailed job offer.

Good to know

Minimum Wage System in Dubai

Dubai has no regulations imposing a minimum wage, allowing employers to determine salaries based on market supply and demand.

Employers’ Commitment to Administrative Costs

Employers are responsible for providing financial support to their employees for processing administrative formalities, particularly regarding work permits, in accordance with the established requirements. It is therefore illegal and prohibited for an employer to ask an employee to pay the costs of obtaining a residence visa or any other administrative fees.

Housing Requirement for Workers

Employers must ensure that their employees have suitable housing, which can be achieved in two ways:

1. By providing housing approved by the competent authorities.
2. By offering financial housing assistance, which may be included in the salary paid.

Understanding labor laws in the United Arab Emirates (UAE) is therefore essential for both employers and employees to ensure a harmonious working environment that complies with legal requirements. Over the past few decades, the Emirates have experienced significant economic growth and development, leading to changes in their labor laws to adapt to the changing needs of the workforce. If you wish to hire for your company in Dubai, our team will support you and explain everything, including the pre-employment declaration. support@merritt.ae.