The economy of the United Arab Emirates (UAE) is the 4th largest in the Middle East (after Turkey, Saudi Arabia and Iran). It has an open economy with a high per capita income and annual trade surplus. The UAE economy is mainly driven by natural resources like petroleum and natural gas. More specifically, more than 85% of the UAE’s economy was based on oil exports in 2009. The UAE government started to diversify its economy in recent years, successfully expanding into tourism and trade sectors, and such efforts have reduced the portion of GDP from the oil and gas sector to 30%. Finally, the country’s free trade zones offering full foreign ownership and zero taxes have attracted many foreign businesses to invest in the UAE.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in the United Arab Emirates. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.
Global payroll solutions make it easy to find and hire top talent in the United Arab Emirates. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
United Arab Emirates’ worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
The primary law governing employment relationships in the United Arab Emirates is the Federal Law No. 8 of 1980. It contains declarations of principles relating to right to work, fair payment, maximum working hours, minimum wages, labour disputes, occupational safety and health, as well as rights of female workers and juveniles.
Globelise will be able to help you navigate through the employment process and so that you’ll be able to offer a competitive and compliance offer to attract and retain your employees in the UAE.
Currently, there are still no independent trade unions in the UAE. However, the government has granted limited freedom to some professional associations to raise work-related concerns, lobby the government for redress, and file grievances.
Probation period in the UAE generally lasts between 3 to 6 months.
Company or Individuals who are looking to hire talents and run payroll globally
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