United Arab Emirates

Employer of Record & PEO in the UAE

Hire & manage teams remotely in the UAE without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Native Language


Employee Protection


Payroll Frequency


Capital city

Abu Dhabi






UAE Dirham (AED)



English Speaking



10.08 Million

Employment Cost


Cost of Living


How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in the UAE. Registering a legal entity in the UAE as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in the UAE in full accordance with local labor laws in under a week.

Employer of Record in the UAE

Employer of Record (EOR) services are for companies who do not have a legal entity in the UAE, but who want to hire in the UAE. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in the UAE.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in the UAE in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in the UAE while NNRoad manages payroll & HR liabilities.

  • Sponsoring expat employees and proceeding with visa/work permits and labor contract
  • Engaging employees through local labor contracts including contract administration, engagement, extension, termination and conversion to permanent hire
  • On-boarding and off-boarding employees following local labor law practice like offer letter, contracts, medical test, work permits, Emirates ID, Visa stamp etc.
  • Registration of employees with health insurance, if required
  • Complete payroll solution and mandatory benefit administration
  • Employee management according to local laws, including employee record, time keeping, bonus and allowance management, expense and claims, and leave employee database management
  • Payment management, including invoicing customers/clients and salary payments
  • Dealing with HR related matters during the course of employment

Payroll & PEO in the UAE

Professional Employment Organization (PEO) services are for companies who have a legal entity in the UAE, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

➊ You interviews & select the candidates you want to hire in the UAE.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in the UAE while NNRoad manages payroll & HR compliance.

  • Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules
  • Employee benefits administration
  • Calculation of gross salary, salary deductions, such as social insurances, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive schemes/bonus, overtime etc.
  • Pro-rata calculation for people who join/resign
  • Providing a monthly payroll summary to the Company
  • Follow-ups for passport/visa expiry and other necessary documents, if required

Advantages of NNRoad's UAE Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in the UAE.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in the UAE.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance in the UAE

Taxes & Payroll in the UAE

There is currently no personal income tax in the United Arab Emirates.

Employer Costs in the UAE

After one month of employment, the employer is required to register a UAE citizen/GCC national with the General Pension and Social Security Authority (GPSSA).

Employer Contributions:

12.50% – Social Security (basic social security plus housing allowance, based on monthly minimum of 1,000 AED and maximum of 50,000 AED)

Total employment cost: 12.50%

Employee Contributions:

5% – Social Security (contributions are for Emiratis only, no contributions for expats)

Total employee cost: 5%

Working Hours in the UAE

Working Hours per Week

According to the labour law in the UAE, Private sector employees are required to work 8 hours per day or 48 hours per week. Public sector employees are required to work 7 hours per day. During the holy month of Ramadan, working hours are reduced by 2.


The employer may hire the worker for additional working hours as long as they do not exceed two hours per day, and the worker may not work more than those hours unless the Executive Regulations of this Decree-Law specify the processes and conditions. In any case, the total number of hours worked in three weeks cannot exceed 144.

Benefits & Insurance in the UAE

Social Security

UAE nationals working in government and private sectors are eligible for pensions and other retirement benefits after reaching the retirement age of 49 or after serving for 20 years minimum. GCC nationals employed in the UAE are entitled to a pension in accordance with the schemes established in their home countries. Expatriate workers are not entitled to a pension but are entitled to end-of-service benefits also known as gratuity or severance pay.

Termination Laws in the UAE

A limited contract can be unilaterally terminated by either party as long as the legal penalties of early termination are met. An employment relationship is terminated in the case of unlimited contracts if both the employer and the employee mutually agree to terminate the contract, or if either party decides to terminate the contract provided that the terminating party follows the legal notice requirements and continues to honor his obligations. An employer or an employee can cancel an employment contract without notice in certain circumstances. When an employer fires an employee or compels him to resign for no cause, this is known as arbitrary dismissal.

No notice is required for termination during a probationary period. For dismissals (other than for cause) employers must provide a minimum of 30 days prior written notice. 

Notice periods in the DIFC are determined by the employee’s length of service, specifically:

  • 1 week’s notice after 1-5 months of employment
  • Up to 5 years of employment with a 30-day notice period
  • After 5 years of service, you will be given 90 days’ notice

Severance pay

The amount of severance pay is determined by the length of service of the employee. If the cause for termination is not recognized as legal, the employee may be entitled to up to three months’ pay in additional compensation.

Holidays in the UAE

Public Holidays in the UAE

  • New Year’s Day – January 1-2
  • Eid al-Fitr Holiday – May 1-5
  • Afrah Day – July 9th
  • Eid Al Adha – July 10-12
  • Hijri New Year’s Day – July 30th
  • Prophet Muhammad’s Birthday – October 8th
  • Commemoration Day – December 1st
  • National Day – December 2-3

Paid Leave in the UAE

Employees are entitled to the following amount of annual leave:

  • If they’ve served for six months but not a year, they’ll get two days per month;
  • if they’ve served for a year, they’ll get 30 days.

Unused vacation time must be carried over or paid out.

Employment Contract in the UAE

Employment Contract

The start and end dates of the job period are usually specified in limited-term contracts. When a contract expires, it is immediately canceled unless it is renewed.

When a business has to hire personnel for a specific project or for a set period of time, these contracts are used.

An unlimited term contract is a type of contract that is open-ended, more flexible, and widely used in the UAE. It can be ended by mutual consent or by delivering a 1 to 3 month notice period. During the notice period, all parties must fulfill their duties.

Probation Period

An employer has the right to hire a worker on a probationary basis for a period of not more than six months from the date of appointment, and the employer may terminate the worker’s service during the probationary period by giving him a 14-day written notice prior to the date set for his termination.

Types of Leaves in the UAE

Sick Leave

Employees who have worked for three months are eligible for paid sick leave up to 90 days per year and must present a medical certificate within 48 hours of the first day of illness.

The employee is entitled to 100% of his or her usual salary rate of compensation for the first 15 days of sickness. For the next 30 days, this drops to 50%, and any further sickness within a year is unpaid.

Maternity Leave

Employees with one year of service are entitled to 45 days of paid maternity leave at 100% of their regular salary rate of pay; employees with less than one year of service are entitled to 50% of their regular salary rate of pay. Before and after the due date, the employee can take maternity leave.

Parental Leave

In the United Arab Emirates, there is no supplementary parental leave. Both parents are entitled to 5 days of paid leave for private-sector employees. Employees are permitted to take time off until the child reaches the age of six months.

Immigration Laws in the UAE

Foreign workers who wish to work in the UAE must register with the UAE immigration authorities. All foreigners must have a work offer from a UAE-based company, and some positions require specific qualifications that the minister of foreign affairs may require.

The process begins with obtaining a work permit from MoHRE for an expatriate. The work permit permits the holder to enter the UAE and it has a validity of two months from the date of issuing.

Following the employee’s entry into the UAE on the basis of a work permit, the sponsoring firm organizes for medical tests, the acquisition of a UAE Resident Identity (Emirates ID) Card, a Labour Card, and the stamping of the work residency permit on his passport within a 60-day period. The employee’s work residency permit on his passport indicates that he is sponsored by the company where he works.

After completing this process, the employee can sponsor and bring his family members into the nation.


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