How to use an Employer of Record in the United Arab Emirates

How to use an Employer of Record in the United Arab Emirates

What happens when a country levies no taxes on personal income on the millions of expats and workers based in the country?

It quickly becomes a business hub that attracts businesses, agencies, and skilled professionals from around the world— think developers, engineers, marketers, and managers. We’re talking about the United Arab Emirates (UAE).

The country has a diverse and talented workforce that businesses can easily tap into if they want to expand globally. However, hiring employees in the United Arab Emirates is no mean feat.

You’ll have to create a local entity in the UAE, file for employment permits with the authorities, and build a team of HR staff to ensure you comply with Emirati employment laws — a process that can be expensive and time-consuming.

On the other hand, you could use an Employer of record UAE. An employer of record maintains a local Emirati entity that officially hires your employees while they work for you. That way, you can scale your hiring faster without breaking some obscure employment regulation.

This article will explain how to use an employer of record in the United Arab Emirates, the benefits and costs of using an EOR, and how Connect Resources services can help you grow your remote team in the UAE.

What are the benefits of using an employer of record in the United Arab Emirates?

Using an employer of record saves you the time and money you’d have spent on creating a local entity yourself and maintaining compliance with Emirati employment laws.

The benefits of using an employer of record include:

A local entity that’s approved to hire Emiratis

A simple and fast onboarding experience for your employees

Support with your benefits and compensation strategy so that you can offer competitive salary and benefits packages that attract the best talent

Legal support and compliance with Emirati employment laws and regulations

Global payroll processing for your employees and contractors

Data security and intellectual property protections

Remote’s global employment solutions can help you hire, pay, and manage employees in the UAE and globally. Learn more about how Remote’s powerful platform makes it easy for you to onboard your global team in minutes.

How much does it cost to use an EOR in the United Arab Emirates?

The cost of using an EOR varies depending on the services required, the number of workers you want to hire, and where they are located.

Older EOR providers charge enterprise rates that could be as high as $2,000 per employee per month. Smaller companies may charge lower rates, but you’ll have to ensure they have all the infrastructure required for you to hire abroad compliantly. Some smaller EORs may not have strong security measures in place or may be dependent on third-party companies that can hike prices at will.

In contrast, Remote offers everything you need to build a truly global team: payroll, benefits, data security, IP protection, and world-class support from our team of global employment specialists — at an affordable, flat rate.

Learn how Connect Resources compares to other EORs and why you should opt for an employer of record UAE services that offers a comprehensive global employment solution for the best prices.

Employment benefits and compensation in the United Arab Emirates

Emirati law provides for several statutory benefits and perks that employers are required to provide to their employees.

Maternity and paternity leave

Expectant mothers are entitled to 45 days of fully paid maternity leave unless they’ve been employed for less than a year, in which case they’ll be entitled to just half of their normal maternity entitlements.

Paternity leave

Fathers are entitled to five days of paid paternity leave within six months of their child’s delivery.

Healthcare

The United Arab Emirates offers universal health coverage for Emirati citizens. Connect Resources can help you roll out a private health insurance program for any of your non-Emirati employees that may be based in the UAE.

Other benefits Connect Resources can help you roll out

Empower businesses to hire anyone from anywhere in the world. A crucial part of that experience is in paying remote talent well and providing unbeatable benefits for your global team.

Connect Resources can help you roll out compliant benefit packages that will help you delight your employees in the UAE and promote better work-life balance for your employees.

Connect Resources can help you achieve that by rolling out benefits such as:

Medical insurance, covering dental and vision
401K retirement accounts
Life insurance
Paid time off

What are the risks of employee misclassification in the United Arab Emirates?

Depending on your legal jurisdiction, misclassifying employees to avoid providing benefits can attract fines, penalties, and legal sanctions to pay any outstanding benefits not provided until that point.

Emirati employment law doesn’t specify any outstanding penalties for misclassifying employees, but the law is always subject to change. It’s important to always lways make sure your employees and contractors are classified correctly to avoid potential legal liability.

The best way to avoid misclassification risks is to work with a trusted employer of record who can help you classify your workers in the UAE correctly. Remote’s team of employment experts have in-depth knowledge of local laws and can ensure compliance with Emirati laws on worker classification.

Get started with an employer of record for the United Arab Emirates

Hiring remote employees in the UAE doesn’t have to be complicated — when you’re using Remote, that is.

Instead of spending a significant amount of time and resources to set up a local entity, provide compliant benefits, and figure out how to pay your workers in the UAE.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your hiring options so you can make the right choice for your organization. Contact us today.