The United Arab Emirates (UAE) is located in Asia. It is situated in the southeastern region of the Asian continent and in the eastern part of the Arabian Peninsula. It overlooks the Arabian Gulf on the north and northwest, borders the Kingdom of Saudi Arabia to the west and south, and the Sultanate of Oman to the southeast. Spread over 83,600 square kilometers, the UAE is a constitutional federation of seven emirates. It is a politically and economically stable country. The UAE hosts more than 200 nationalities doing business, living, learning, and touring the country.
Companies expanding globally often rely on a United Arab Emirates Employer of Record or UAE Employer of Record to simplify market entry and remain compliant with local labor laws.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the United Arab Emirates.
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The United Arab Emirates (UAE) is located in Asia. It is situated in the southeastern region of the Asian continent and in the eastern part of the Arabian Peninsula. It overlooks the Arabian Gulf on the north and northwest, borders the Kingdom of Saudi Arabia to the west and south, and the Sultanate of Oman to the southeast. Spread over 83,600 square kilometers, the UAE is a constitutional federation of seven emirates. It is a politically and economically stable country. The UAE hosts more than 200 nationalities doing business, living, learning, and touring the country.
Companies expanding globally often rely on a United Arab Emirates Employer of Record or UAE Employer of Record to simplify market entry and remain compliant with local labor laws.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the United Arab Emirates.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in United Arab Emirates planning:
The national holidays mentioned below are valid for the year 2026. These dates form part of the mandatory statutory holidays in the United Arab Emirates and must be observed by employers and companies operating through a United Arab Emirates Employer of Record or UAE Employer of Record services.
| January 1 | New Year’s Day | |
| March 18 - 22 | Eid Al Fitr | Movable |
| May 26 | Arafat Day | Movable |
| May 27 - 29 | Eid Al Adha | Movable |
| June 16 | Islamic New Year | Movable |
| August 25 | Prophet Mohammed's birthday | Movable |
| December 2 - 3 | National Day & National Day Holiday |
The approximate time for sharing the contract with an employee in United Arab Emirates is 5 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
Companies using Employer of Record services UAE or an EOR UAE partner typically receive locally compliant employment contracts prepared according to UAE Labour Law.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
This is particularly relevant for companies planning to hire employees in United Arab Emirates through a UAE Employer of Record or Employer of Record United Arab Emirates solution.
There is a social security regime in the United Arab Emirates that applies to qualifying UAE and other Gulf Cooperation Council (GCC) national employees only. Non-GCC nationals are not subject to social security in the United Arab Emirates. Global companies entering the market via a United Arab Emirates EOR rely on the provider to administer payroll compliance and statutory obligations.
Companies that hire contractors in the United Arab Emirates or pay contractors in the United Arab Emirates through an EOR UAE must still ensure compliant benefits handling where applicable.
Social insurance offers a variety of privileges to citizens, some of which are: healthcare, education, housing, and public services. It also covers disability or special needs for people with determination, occupational diseases, and injuries.
Employers pay 12.5% of payroll costs to the General Pension and Social Security Authority for UAE nationals. A higher rate of 15% is applied in the Emirate of Abu Dhabi.
Starting June 1, 2023, employees will also pay 5 AED per month for unemployment insurance.
The model also supports businesses hiring contractors in the United Arab Emirates while maintaining payroll and compliance management.
The maximum working hours for the private sector is eight hours per day, or 48 hours per week. During the holy month of Ramadan, the working hours must be reduced by two hours. These regulations define the official working hours in the United Arab Emirates and are administered by most UAE Employer of Record services providers.
The worker must not work for more than five consecutive hours without a break or breaks of not less than an hour in total, provided that these periods are not included in the working hours.
The broader leave policy in the United Arab Emirates also includes annual leave, sick leave, and maternity leave entitlements governed by labor law and managed through a UAE Employer of Record provider.
The employer may ask the employee to work overtime, provided the number of extra hours does not exceed two hours in one day. In all cases, the total working hours must not exceed 144 hours every three weeks.
If the nature of the work requires employees to work beyond the normal working hours, then they become entitled to a payment equal to normal working hours’ remuneration (which is based on basic salary) plus 25% of that pay. It increases to 50% if overtime is done between 10 pm and 4 am. This rule does not apply to workers who work in shifts.
A probationary period for the worker must not exceed six months. It is not permissible to appoint a worker under probationary period more than once for employer, and if the worker successfully passes the probationary period and continues to work, the contract becomes valid according to the agreed terms. This period must be counted within the term of service.
Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work is performed during the notice period agreed upon in the contract, provided that such period is not less than 30 days and not more than 90 days.
The maximum working hours for the private sector is eight hours per day, or 48 hours per week. During the holy month of Ramadan, the working hours must be reduced by two hours. These regulations define the official working hours in the United Arab Emirates and are administered by most UAE Employer of Record services providers.
The worker must not work for more than five consecutive hours without a break or breaks of not less than an hour in total, provided that these periods are not included in the working hours.
The broader leave policy in the United Arab Emirates also includes annual leave, sick leave, and maternity leave entitlements governed by labor law and managed through a UAE Employer of Record provider.
The employer may ask the employee to work overtime, provided the number of extra hours does not exceed two hours in one day. In all cases, the total working hours must not exceed 144 hours every three weeks.
If the nature of the work requires employees to work beyond the normal working hours, then they become entitled to a payment equal to normal working hours’ remuneration (which is based on basic salary) plus 25% of that pay. It increases to 50% if overtime is done between 10 pm and 4 am. This rule does not apply to workers who work in shifts.
A probationary period for the worker must not exceed six months. It is not permissible to appoint a worker under probationary period more than once for employer, and if the worker successfully passes the probationary period and continues to work, the contract becomes valid according to the agreed terms. This period must be counted within the term of service.
Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work is performed during the notice period agreed upon in the contract, provided that such period is not less than 30 days and not more than 90 days.
There is a social security regime in the United Arab Emirates that applies to qualifying UAE and other Gulf Cooperation Council (GCC) national employees only. Non-GCC nationals are not subject to social security in the United Arab Emirates. Global companies entering the market via a United Arab Emirates EOR rely on the provider to administer payroll compliance and statutory obligations.
Companies that hire contractors in the United Arab Emirates or pay contractors in the United Arab Emirates through an EOR UAE must still ensure compliant benefits handling where applicable.
Social insurance offers a variety of privileges to citizens, some of which are: healthcare, education, housing, and public services. It also covers disability or special needs for people with determination, occupational diseases, and injuries.
Employers pay 12.5% of payroll costs to the General Pension and Social Security Authority for UAE nationals. A higher rate of 15% is applied in the Emirate of Abu Dhabi.
Starting June 1, 2023, employees will also pay 5 AED per month for unemployment insurance.
The model also supports businesses hiring contractors in the United Arab Emirates while maintaining payroll and compliance management.
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