March 13, 2025 by Myriam B.Β
Hiring employees in the United Arab Emirates (UAE) comes with strict legal obligations. Failing to comply can lead to heavy fines, employee disputes, or even suspension of your business license.
How can you ensure compliance? SLM Consultants guides you through the key legal requirements every employer must follow.
All employees must have a written contract in Arabic (translation into English is optional).
π Key requirements:
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Clearly state duration, salary, working hours, and termination conditions.
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Probation period must not exceed 6 months.
π¨ Non-compliance penalties: Fines of up to AED 20,000.
π SLM Consultants can draft or review your contracts to ensure full compliance.
Before an employee starts working, the employer must:
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Obtain a work visa and Emirates ID.
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Provide mandatory health insurance.
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Renew visas on time (AED 1,000 fine per month for delays).
π‘ SLM Consultants Tip: We handle all visa processes to prevent errors and delays.
π Mandatory rules:
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Salaries must be processed through the Wage Protection System (WPS).
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Late salary payments can result in AED 5,000 per affected employee.
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Overtime pay: +25% on weekdays, +50% on public holidays.
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End-of-service benefits: 21 days of salary per year (first 3 years), then 30 days per year.
π SLM Consultants ensures your payroll complies with UAE labor laws.
Legal working hours: 8 hours/day (48 hours/week), reduced to 6 hours/day during Ramadan.
π Employee leave entitlements:
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30 paid annual leave days after one year of service.
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Up to 90 days of sick leave per year (first 15 days paid at 100%).
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60 days of maternity leave (fully or partially paid).
π¨ Non-compliance penalties: Fines up to AED 50,000.
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Employers must provide a safe working environment (protective equipment, signage, training).
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Health insurance is mandatory for all employees.
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Measures must be in place to prevent harassment and discrimination.
π¨ Penalties: Fines up to AED 100,000 for violations.
π‘ SLM Consultants offers compliance audits to identify and fix risks.
π Key requirements:
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Minimum 30-day notice period (unless terminated for serious misconduct).
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Final payments must be settled before contract termination.
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Employees must receive a work experience certificate.
π¨ Failure to comply risks: Fines up to AED 20,000.
π SLM Consultants helps you manage employee terminations legally and smoothly.
Managing employees in the UAE requires strict adherence to labor laws. SLM Consultants helps you stay compliant and avoid penalties by ensuring your business meets all legal requirements.
π Need expert support? Contact us today! π