Employer of Record United Arab Emirates

Think of it like this: Agility EOR becomes the legal employer of your employees, taking care of all the paperwork and compliance headaches.

Agility EOR

• We manage the onboarding process and ensure everything’s in order before your employee starts
• We make sure your employees are treated fairly and compliantly in their relevant territory
• We take care of all HR matters, and can answer any and all HR queries you may have e.g. maternity/paternity leave, holidays, sick pay, and more
• We provide compliant contracts, process local payroll, and file taxes
• We issue payslips and handle payments to the employee and authorities

Your Company

• You find and manage your employees’ daily tasks
• You support their development through their work
• You follow our guidance on employment laws and best practices
• You ensure payroll bills are paid to Agility EOR on time

Benefits of using an Employer of Record (EOR)

• Faster and easier hiring: No need to set up your own legal entity.
• Reduced risk and compliance burden: We handle the legal and administrative complexities.
• More time and resources: Focus on your core business while we manage your employees.

There are various ways to employ people in the United Arab Emirates, each with differing levels of costs and compliance:

Employee is employed by you and paid by you from your overseas Company

• Pros: It seems like the most straightforward and affordable choice.
• Cons: The employee is subject to United Arab Emirates employment legislation and is unable to make the legally required social security contributions.

Entity Set-up

• Pros: If you employ a large number of people — typically more than 15 — this may be the most economical choice.
• Cons: Creating a formal corporate structure and upholding stringent adherence to employment and tax laws in the United Arab Emirates can be expensive and time-consuming, particularly for smaller businesses. This strategy frequently proves unworkable for companies with fewer than 15 employees.

Using an Employer of Record

• Pros: In the United Arab emirates, utilizing an Employer of Record service proves to be the most time-and-cost-effective solution for managing payroll, HR, and compliance tasks, particularly for establishing employer-employee relationships with teams smaller than 15 individuals.
• Cons: Costly when hiring a large number of employees. Knowing which Employer of Record provider to choose can be difficult.

Hire a contractor in the United Arab Emirates

• Pros: When the employee isn’t contracted to your business, this approach works well because it gives you the option to send a stand-in for them on their days off.
• Cons: In the United Arab Emirates, hiring a full-time employee who is exclusively committed to your business without the appropriate employment categorization is illegal. Such misclassification may result in fines or even criminal prosecution.

Yes, provided that the employee has other jobs, has the independence to choose how to complete tasks, and has the ability to choose a substitute contractor for when they are not available. An employee in the United Arab Emirates is an individual who works only for your company and whose responsibilities are set by your company. Employment legislation in the United Arab Emirates is broken if this isn’t done.

Under the United Arab Emirates, misclassifying an employee may result in hefty fines, unpaid holiday pay and social security contributions, the requirement to create a local presence, or even legal action from the employee for violation of their job rights.

Securing a trade license from the appropriate authorities and registering your company with the Commercial Register are the first stages in starting a business in the United Arab Emirates.

Despite the initial registration process seems straightforward, there are additional complexities to the setup process, such as setting up a physical office for tax purposes, opening a bank account in the United Arab Emirates (which frequently requires in-person presence), managing payroll software compliant with United Arab Emirates regulations, and achieving tax filing obligations.

Employing individuals in the United Arab Emirates requires observing certain regulatory requirements. Put more simply, HR compliance guarantees that your business adheres to all employment and work practice laws. However, why is it so crucial?

HR compliance in the United Arab Emirates protects your company and your employees, going beyond simple paperwork. Adhering to employment laws ensures that your employees receive equitable treatment, including minimum salary, yearly leave, sick leave, and suitable working hours. This reduces the possibility of financial penalties, legal ramifications, and even litigation resulting from non-compliance, in addition to creating a healthy work atmosphere.

Tax and social security duties are made simpler when Agility EOR is partnered with you as your Employer of Record in the United Arab Emirates. We handle all employee-related files and contributions, guaranteeing full compliance, so you may worry-free concentrate on operating your company.

The day-to-day management and communication with your team, including handling performance issues, enforcing disciplinary actions when needed, and cultivating a positive work environment through open communication, remain the responsibility of your company. Agility EOR takes care of the complexities of employment law and compliance in the United Arab Emirates.

Agility EOR handles the legal side of things in the United Arab Emirates , so you can focus on managing your team and their daily tasks.

The UAE’s tax structure is highly favorable, especially for expatriate workers.

Employees do not pay personal income tax, but employers must contribute 12.5% of gross salary to social security for UAE nationals, with employees contributing 5%. Expatriates are exempt from social security contributions but are entitled to an end-of-service gratuity based on their length of service.

Workers who are covered by a regular employment contract and legal safeguards are provided by their Employer of Record in the United Arab Emirates. This covers relevant tax credits as well as statutory benefits including maternity leave, yearly leave, and sick pay. It’s crucial to remember that everyone living in the United Arab Emirates, not just employees, is covered by the public healthcare system.

Agility EOR handles the administrative burden of HR compliance for you:

Trusted Partners: Top United Arab Emirates employment attorneys and experts work together with Agility EOR. This guarantees that all local legal requirements are strictly followed by your employment contracts and other important paperwork.

Comprehensive Understanding: We keep up-to-date knowledge of all the nuances of employment law in the United Arab Emirates, including rules pertaining to remote work, payroll, social security, and data protection.

Quick Action: Our internal team is available to help and support you as soon as a problem develops.