Setting up a business in Dubai comes with various benefits, but hiring employees requires a thorough understanding of UAE labour laws. To ensure compliance and avoid legal pitfalls, employers must familiarise themselves with key employment regulations.

Employment Contracts

In the UAE, all employees must have a formal contract that specifies job roles, salary, benefits, and working conditions. The contract can be limited (fixed-term) or unlimited (open-ended). Recent labour reforms have standardised fixed-term contracts, ensuring more transparency and security for both employers and employees.

Working Hours and Overtime

The standard working week in the UAE is 8 hours per day or 48 hours per week. However, during Ramadan, working hours are reduced by two hours. Overtime must be compensated according to labour law, with increased pay rates for work beyond regular hours and during public holidays.

Employee Benefits and Leave

Employees in Dubai are entitled to benefits such as paid annual leave (a minimum of 30 calendar days per year after completing one year of service), sick leave, maternity/paternity leave, and end-of-service gratuity. Employers must ensure they provide these benefits to maintain compliance with UAE labour laws.

Visa and Work Permits

Foreign employees require a work visa and residency permit sponsored by their employer. The visa process includes medical examinations, Emirates ID registration, and labour contract approval. Companies must manage visa renewals and adhere to sponsorship obligations.

Understanding and complying with UAE labour laws is crucial for businesses hiring employees in Dubai. Employers who follow these regulations will not only avoid legal issues but also create a fair and productive work environment.

If you need advice on setting up your business, obtaining visas, or securing the right licensing to start in Dubai, get in touch with us today.