An employer of record in Dubai employs your hire through a licensed United Arab Emirates entity, sponsors the work permit and residence visa, issues an employment contract that complies with UAE labour law, runs payroll and carries the legal employer obligations, while you direct the day-to-day work. Private sector employment across the UAE is governed by Federal Decree-Law No. 33 of 2021, as amended by Federal Decree-Law No. 20 of 2023, in force since 2 February 2022. Dubai adds a wrinkle the sales pages skip: free zones such as the DIFC run their own employment rules, so which entity employs your hire determines which regime applies. Nothing on this page is legal advice; the contract and the law control.
What the UAE labour law requires of the employer
Federal Decree-Law No. 33 of 2021 replaced the old regime and covers employment contracts, working hours, overtime, leave, termination and end of service gratuity for private sector employees, whether UAE nationals or expatriates; government workers, the armed forces, police and domestic workers sit outside it. The law eliminated unlimited-term contracts in favour of fixed-term models and introduced full-time, part-time, temporary and flexible work arrangements. It prohibits discrimination and forced labour and addresses workplace harassment. For a foreign company, the practical consequence is that the legal employer must be an entity licensed in the UAE that can sponsor the work permit; an EOR supplies that entity, and the employment contract your hire signs is with the EOR, drafted to the decree-law's requirements.
Probation and notice: the figures that bind
Probation in the UAE is capped at six months. During probation the notice rules are asymmetric: an employer terminating must give 14 days' written notice, while an employee resigning to join another employer in the UAE must give 30 days, or 14 days if leaving the country for more than three months. A foreign employee who leaves without observing the 14-day probation notice can be barred from a new UAE work permit for a year, which is worth telling your hire before they plan an exit. After probation, either party may terminate with written notice of not less than 30 days and not more than 90 days, whatever the contract sets within that band, and a party that skips notice owes compensation in lieu equal to the employee's wage for the notice period. An EOR's contract template should state the notice period explicitly; ask to see it before your hire signs.
Dubai specifics: mainland versus free zone
Dubai employment happens under one of two umbrellas. A mainland entity, licensed by the Department of Economy and Tourism and registered with the Ministry of Human Resources and Emiratisation, employs under the federal decree-law. Free zones license their own entities, and while most follow the federal law, the DIFC financial free zone runs a separate employment law and its own courts. Which umbrella your EOR's entity sits under decides the rules, the visa process and the dispute forum for your hire. This is the first question to ask a Dubai EOR: which entity will employ this person, mainland or free zone, and under which employment regime. The second is who handles the residence visa and how long sponsorship takes, because the person cannot lawfully start work without the permit, and timelines differ by authority.
What to verify before hiring through a Dubai EOR
Verify the entity: its licence, its emirate, and whether it is the EOR's own or a local partner's, since the partner model adds a layer between you and the legal employer. Verify the cost stack in writing: UAE salaries are quoted gross with no personal income tax, but the invoice will carry visa and permit fees, mandatory medical insurance, any free zone charges, and end of service gratuity accrual, which the law requires on top of wages. Verify the contract terms against the decree-law's bands: probation within six months, notice within 30 to 90 days, and a gratuity clause that says how the accrual is held. Finally, verify the exit: what a lawful termination costs, and what happens to the visa when employment ends, because the residence permit is tied to the employer and your hire's family plans may be tied to the permit.
Questions people ask about eor dubai
Does my hire pay income tax in Dubai?
The UAE levies no personal income tax on employment income, so gross and net salary are close; the employer-side costs are visa fees, insurance and gratuity accrual rather than payroll tax. Home-country tax obligations can still follow the employee, which is a question for a tax adviser, not an EOR.
What notice period applies to a UAE employment contract?
After probation, written notice of not less than 30 days and not more than 90 days, as the contract sets. During probation the employer gives 14 days; an employee resigning to join another UAE employer gives 30 days. A party skipping notice owes pay in lieu for the period.
Is a Dubai free zone EOR different from a mainland EOR?
Yes, materially. Most free zones apply the federal labour law with their own licensing, but the DIFC has a separate employment law and courts. Ask which entity employs your hire and under which regime before comparing anything else.
How fast can an EOR hire someone in Dubai?
The contract can be drafted in days, but lawful work needs the work permit and residence visa, and those timelines belong to the authorities, not the vendor. Treat any promised start date as conditional on the visa and confirm who carries the fees if it slips.