Employer of Record in the UAE — Hire Compliantly Without a Local Entity

Under UAE Federal Labour Law, pregnant employees are entitled to 45 calendar days of paid maternity leave. This leave is paid at 100% of the employee's full salary, and the employer bears the full cost. Notably, there is no minimum length-of-service requirement — entitlement applies from the first day of employment.

Furthermore, employees may take additional unpaid leave following the 45-day paid period if medically required, subject to presentation of a medical certificate. Terminating an employee during maternity leave is prohibited under UAE law.

Under the 2022 amendments to the UAE Labour Law, male employees in the private sector are entitled to 5 working days of paid paternity leave. Specifically, this leave must be taken within the first 6 months following the birth of the child. The employer is responsible for salary payment during this period. Additionally, proof of birth in the form of a birth certificate or equivalent documentation is required.

In addition to paternity leave, eligible employees are entitled to 5 working days of paid parental leave within the first 6 months after the birth of their child. Following this period, employees may take up to 45 calendar days of unpaid parental leave. Employees must submit a medical certificate when requesting parental leave through the platform.

Under UAE Labour Law, employees are entitled to paid sick leave for up to 90 calendar days per year, provided they have completed at least 3 months of continuous service after the end of the probationary period. Specifically, the employer pays sick leave at the following rates:

In addition, UAE Labour Law provides the following paid special leave entitlements:

• Death of a spouse: 5 days of paid compassionate leave
• Death of a parent, child, sibling, grandparent, or grandchild: 3 days of paid compassionate leave
• Marriage of the employee: 3 days of paid leave
• Hajj pilgrimage (once in employment lifetime): 30 days of unpaid leave

Employment terminations in the UAE must comply with Federal Decree-Law No. 33 of 2021 (as amended). Specifically, as your Employer of Record in the UAE, MBRemote manages the complete off-boarding process in full compliance with UAE Labour Law, including MOHRE (Ministry of Human Resources and Emiratisation) notifications, visa cancellation, and final settlement processing.

Compliant Termination Methods:

• Voluntary resignation by the employee
• Mutual agreement between employer and employee
• Unilateral termination by the employer with proper notice period and full final settlement
• Termination for cause without notice (Article 120 grounds only)
• Expiration of a fixed-term contract without renewal

Grounds for Termination Without Notice (Article 120):

• Employee assumes a false identity or submits forged documents
• Employee commits an error causing substantial financial loss to the employer
• Employee violates health and safety regulations after written warning
• Employee is absent without valid reason for more than 20 non-consecutive or 7 consecutive days per year
• Employee found guilty of a criminal offence involving dishonesty or moral turpitude
• Employee discloses confidential business information to competitors

The minimum statutory notice period for termination in the UAE is 30 calendar days (1 month). The maximum notice period is 90 calendar days (3 months). Importantly, both parties must agree on and document the exact notice period in the employment contract at the time of hiring.

Payment in Lieu of Notice

Notice periods apply equally to both employer-initiated and employee-initiated terminations. Furthermore, the employer may opt to pay the employee in lieu of notice (payment in lieu), allowing the employment relationship to end immediately upon payment of the equivalent salary for the notice period. During the notice period, the employee is entitled to full salary and benefits.

Specifically, all employees who complete at least 1 year of continuous service are entitled to End-of-Service Gratuity upon termination — unless dismissed for cause under Article 120. Importantly, gratuity is calculated on the employee's basic salary only (excluding allowances):

• First 5 years of service: 21 working days of basic salary per year
• Each year beyond 5 years: 30 working days of basic salary per year
• Total gratuity is capped at a maximum equivalent to 2 years of total compensation

Therefore, gratuity must be paid as part of the Final Settlement within 14 days of the employee's last working day.

During the probationary period, either party may terminate the employment contract by giving a minimum of 14 calendar days' written notice. If the employer terminates a UAE-residence-visa employee during probation without completing proper procedures, the employer may be liable for the costs of the employee's return travel to their home country. Moreover, no gratuity is payable for terminations during probation, provided the employee has served less than 1 year in total.

Employees in the UAE who work a five-day week are entitled to a minimum of 30 calendar days of paid annual leave per year after completing 12 months of continuous service. Leave accrues at a rate of 2.5 calendar days per month.

Annual Leave Accrual During First Year

During the first year of employment, employees may begin taking accrued leave after completing 6 months of service, at a rate of 2 calendar days per month for the remainder of the first year. Once the employee surpasses 12 months of service, the full 30-day annual entitlement applies.

Moreover, unused annual leave may be carried forward or paid out upon termination. Employers may schedule leave at a time that suits business operations, provided reasonable notice is given to the employee.

The UAE observes 15 official public holidays per year. Specifically, public holidays include a mix of fixed-date national holidays and Islamic holidays that vary annually based on the Hijri (lunar) calendar. Notably, Islamic holiday dates are subject to moon-sighting confirmation and may shift by ±1 day.

Official UAE Public Holidays:

• New Year's Day — 1 January
• Eid Al Fitr — 3 days (end of Ramadan, date varies)
• Arafat Day (Eid Al Adha Eve) — date varies
• Eid Al Adha — 3 days (date varies)
• Islamic New Year (Al Hijri New Year) — date varies
• Prophet Muhammad's Birthday (Al Mawlid Al Nabawi) — date varies
• Commemoration Day — 1 December
• UAE National Day — 2 December
• UAE National Day — 3 December

The UAE onboarding timeline varies based on the employee's visa requirements. Specifically, as the legal employer of record, MBRemote sponsors and manages all UAE residence visa applications on your behalf, ensuring full compliance with MOHRE and GDRFA regulations.

• Expatriate employees requiring a UAE residence visa: minimum 3 business days after the Statement of Work (SOW) is signed, pending receipt of the security deposit and submission of all required employee documentation
• UAE nationals and GCC nationals already in-country: minimum 3 business days after SOW signature, pending deposit payment and complete employee information submission
• Employees already holding a valid UAE residence visa: onboarding may be expedited — contact MBRemote for case-specific timelines

MBRemote collects and verifies all required documentation before contract issuance and visa application. For instance, standard documentation requirements for UAE employment include:

Employment contracts in the UAE must be in writing and signed by both the employer and the employee. Employers must issue all contracts in Arabic (the official legal language) or in bilingual Arabic/English format. In any dispute, the Arabic version takes legal precedence.

Additionally, a security deposit is required prior to visa processing. Once the UAE residence visa is issued, MBRemote assumes full employer sponsorship liability — consequently, any client-initiated cancellation after visa issuance triggers return-flight obligations and associated costs.

Mandatory Contract Elements:

• Employee's full name and nationality
• Employment start date
• Contract duration (fixed-term only — see below)
• Job title and detailed job description
• Termination and notice period conditions
• Monthly gross salary with full breakdown (basic salary + all allowances)
• Probationary period details
• Annual leave entitlement
• End-of-service gratuity terms

Following the 2022 UAE Labour Law reform, all employment contracts in the UAE must be fixed-term. Specifically, indefinite-term (open-ended) contracts are no longer permitted for new hires under Federal Decree-Law No. 33 of 2021. Furthermore, all existing indefinite contracts were required to be converted to fixed-term by February 2023.

• Maximum contract duration: 3 years (renewable)
• Contracts can be renewed for the same or shorter periods indefinitely
• Contract backdating is not permitted
• At the end of a fixed-term contract, employers must formally notify the employee of renewal or non-renewal

Probationary periods are mandatory and must be stated in the employment contract. The legal maximum probationary period in the UAE is 6 months from the commencement date of employment. Consequently, the probationary period cannot be extended beyond 6 months and cannot be renewed upon contract renewal.

Termination During Probation

During probation, either party may terminate by providing a minimum of 14 calendar days' written notice. If the employer terminates a residence-visa employee during probation, the employer must cover return travel costs to the employee's home country, unless the employee secures alternative employment within the UAE.

UAE law enforces non-compete clauses under the 2022 Labour Law, provided they meet specific criteria. As a result, a non-compete clause may restrict an employee from joining a competing employer or starting a competing business after leaving employment.

• Must be limited in scope to activities where the employee had access to confidential information, trade secrets, or client relationships
• Maximum duration: 2 years post-employment
• Must be proportionate — courts may reduce overly broad restrictions
• Geographic scope must be reasonable and relevant to the employer's actual business territory

The UAE operates a dual regulatory framework: mainland (onshore) employment governed by Federal Labour Law and MOHRE, and free zone employment governed by the individual free zone authority. In particular, the key practical differences affecting Employer of Record arrangements include: