Hiring Your First Employee in the UAE: Visa, Contract and Payroll (2026)
To hire your first employee in the UAE you need a licensed company, an establishment card with a visa quota, an approved job offer, a work permit and a signed employment contract. After that you set up payroll through the Wages Protection System, arrange health insurance and register the employee for unemployment insurance. This guide covers each step in the order you meet it.
Key takeaways
- You cannot employ someone before you hold a work permit for them from the Ministry of Human Resources and Emiratisation (MOHRE).
- The job offer on the approved form comes first, and the contract must match it.
- Probation lasts up to six months and cannot be repeated with the same employer.
- The notice period in the contract must be between 30 and 90 days.
- Salaries on the mainland are paid through the Wages Protection System.
Before You Hire: What Your Company Needs
A new hire depends on three things the company must already have. They are easy to overlook when you are focused on finding the person.
- A valid licence and lease. The trade licence and the registered premises must be current.
- An establishment card. This links your company to its visas and work permits.
- A visa quota. The quota depends on the legal form and the size of your premises, and a flexi-desk may allow only one visa in many zones.
If your quota is too small, fix the space or the licence before you recruit. Our guide to residence visas for company owners explains how quotas are set and how owner visas use them.
Mainland or Free Zone: Where the Rules Come From
The route differs by where your company is licensed. Mainland companies deal with MOHRE for work permits and contracts. Free zone companies usually process visas and permits through the free zone authority, though the federal employment law still applies to private-sector staff.
Ask your free zone how it handles contracts before you issue an offer. Some zones use their own forms. Our guide to PRO services in Dubai explains who handles the government steps for you.
The Hiring Process Step by Step
- Define the job. Write the title, duties, salary and working pattern before you meet candidates.
- Choose the candidate. Check the person’s right to work and whether they are inside or outside the UAE.
- Issue the job offer. Use the contract form approved by the Ministry. The offer sets out the contract type, the salary, the weekly leave, the notice period and other conditions.
- Apply for the work permit. Submit through Tasheel, the MOHRE app or the e-services. A new contract application must be made within 60 days of the employee’s entry or change of status.
- Wait for approval. The application is reviewed electronically, and the Ministry reports any shortfalls for you to fix.
- Handle the visa and medical steps. The employee gets an entry permit or a status change, a medical test and an Emirates ID.
- Sign the contract. The employer signs the employment contract and gives it to the worker within a week of arrival.
- Register payroll and insurance. Add the person to the Wages Protection System and arrange health and unemployment cover.
The approved job offer must match the final contract. If you change the salary or the role after approval, update the paperwork first.
Hiring From Abroad or Inside the UAE
The path changes with where your candidate lives. Someone abroad needs an entry permit and a new residence visa, so allow time for approvals and travel.
Someone already in the UAE on another visa needs a change of status. That is often faster, but the person must be free to move, and any notice they owe their old employer still applies. Ask for a copy of their current visa and contract early, and check the dates before you promise a start day.
What the Employment Contract Must Cover
Federal Decree-Law No. 33 of 2021 governs private-sector employment. It allows only limited or fixed-term contracts, and it sets the floor on key terms. You can add more generous terms, but you cannot give less than the law.
| Term | What the law says |
|---|---|
| Probation | Up to six months, and not repeated with the same employer |
| Notice period | At least 30 and at most 90 days, with full wages during notice |
| Working hours | Up to 8 hours a day or 48 hours a week |
| Annual leave | 30 days after one year, and 2 days a month after six months |
| End-of-service gratuity | Payable after one year of continuous service |
| Final settlement | Paid within 14 days of the end of the contract |
Keep a copy of the offer and the contract. The law asks the employer to keep them for at least two years after the employment ends.
Probation and Notice Explained
Probation gives both sides time to test the fit. An employer who ends service during probation must give written notice at least 14 days before the termination date. Probation counts towards the employee’s total service once they pass it.
After probation, the notice period in the contract applies. A party that ignores it owes the other compensation equal to the wage for the notice period or the part that remains. If an employee leaves during probation to join another UAE employer, special notice and compensation rules can apply, so check the current MOHRE guidance first.
Working Hours, Leave and Gratuity
These three items shape the cost of every employee. Plan them before you set a salary.
- Hours. The limit is 8 hours a day or 48 hours a week. Working hours are reduced by two hours a day during Ramadan.
- Annual leave. A full-time employee earns 30 days of paid leave after a year. Unused leave is paid out when employment ends.
- Gratuity. After one year of continuous service, an employee earns 21 days of basic salary for each of the first five years and 30 days for each year after that, capped at two years of wages.
Gratuity is calculated on basic salary, so allowances such as housing and transport are left out. Our guides to gratuity calculation and UAE leave types give worked examples.
Paying Your Employee: WPS and Payroll
Salaries on the mainland go through the Wages Protection System. It records each payment electronically so the Ministry can check that staff are paid on time. Late or missing payments can lead to penalties for the company.
Set up payroll on day one. Agree the pay date in the contract, keep payslips, and record deductions only where the law allows. Read our guide to the Wages Protection System for the setup steps.
Insurance and Other Cover
Several covers sit beside the contract. Check each one for your emirate and your free zone.
- Health insurance. Dubai and Abu Dhabi require employers to arrange cover for employees. Confirm the minimum benefits with the health regulator.
- Unemployment insurance. Private-sector employees are covered by the involuntary loss of employment scheme. Our guide to ILOE in Dubai explains who must subscribe.
- Work injury cover. Employees are entitled to compensation for work injuries under the law.
Emiratisation and Other Duties
Some mainland companies must employ UAE nationals once their headcount reaches a set level. Check the current thresholds before your team grows. Our sister site covers the 2026 Emiratisation quota changes.
Keep the employment file in order from the start. It should hold the offer, the contract, the passport and visa copies, the Emirates ID, the insurance details and the payroll records.
What a First Hire Costs Beyond Salary
The salary is only one line. Budget for these items before you commit.
- Work permit and visa fees, and the medical test and Emirates ID.
- Health insurance and unemployment insurance.
- Gratuity, which builds up from the first day.
- Paid annual leave and any flights the contract promises.
- Government service and typing charges.
- The time you or your PRO spend on renewals.
Our cost calculator helps you add the licence and visa lines for your setup.
An Example: A Marketing Agency Hires a Designer
This illustration is not advice for your case. A free zone agency with a spare visa in its quota wants to hire a designer who lives abroad.
- Week 1. The agency confirms the quota, issues the offer on the approved form and agrees a three-month notice period.
- Week 2. The permit is approved and the designer receives an entry permit.
- Week 3. The designer arrives, completes the medical test and starts the Emirates ID process.
- Week 4. The contract is signed within a week of arrival, payroll is set up and insurance starts.
- Months 1 to 6. The agency reviews performance during probation and records feedback in writing.
Mistakes First-Time Employers Make
- Letting someone start work before the permit. You cannot employ a worker without a work permit.
- Changing terms after approval. The offer and the contract must match.
- Setting a notice period outside the legal range. It must be between 30 and 90 days.
- Forgetting payroll registration. Salary payments need to go through WPS.
- Ignoring gratuity in the budget. It accrues from the start.
- Treating a contractor as an employee, or the reverse. Ask an adviser if the arrangement is unclear.
Should You Outsource HR?
A company with one or two staff can run HR itself. As the team grows, many owners hand payroll, visas and contracts to a provider so they can focus on clients. Our guide to outsourcing HR services in the UAE explains what a provider covers and what stays with you.
Summary: What to Remember
- Get a valid licence, an establishment card and a visa quota first.
- Issue the job offer on the approved form, and keep the contract the same as the offer.
- Probation is up to six months, and notice is 30 to 90 days.
- Budget for gratuity, leave and insurance as well as the salary.
- Set up payroll and cover on day one.
To plan your first hire, book a free consultation. The government explains private-sector employment laws on its portal, and our sister site companyformationinuae.com covers company formation.
Some firms hire through an Employer of Record before they form a company, and we compare that route with company formation in EOR or company formation.
Once your team grows, Emiratisation rules for 50 or more employees may start to apply.
Frequently Asked Questions
No. An employer may not recruit or employ a worker without first obtaining a work permit from the Ministry.
Up to six months from the start of work, and it cannot be repeated with the same employer. Ending service during probation needs at least 14 days of written notice from the employer.
The notice period must be at least 30 days and no more than 90 days, and the worker keeps full wages during it.
After one year of continuous service. It is 21 days of basic salary for each of the first five years and 30 days for each year after, capped at two years of wages.
Within 14 days of the end of the contract, covering outstanding wages, unused leave and gratuity.
30 days of paid leave after one year of service, and 2 days a month after six months of service.
The federal employment law covers private-sector staff, but free zones often handle permits and contract forms themselves. Ask your free zone before you issue an offer.
