3 Ways A Foreign Company Can Employ Someone In The UAE

Employing Staff in the UAE without a Local Entity: Three Methods

For foreign companies eyeing the UAE market, hiring staff without establishing a local entity can be a challenge. Prosenjit Biswas, Head of Marketing at Masdar EOR, explains three compliant methods:

1. Employer of Record (EOR): A properly licensed UAE company becomes the employee's local employer and sponsorship vehicle. The EOR handles the legal employment relationship, including contracts, work permits, payroll, WPS, and other statutory requirements. The client company maintains control over the employee's actual work and responsibilities.

2. Mainland manpower/labour-on-demand licensing: When employing employees at client sites, project locations, or industrial facilities, the UAE employment structure must operate under the appropriate mainland manpower licensing framework. Free-zone companies do not automatically qualify for this licensing.

3. Employee categories: UAE nationals require registration and pension requirements, while GCC nationals generally do not need UAE residency sponsorship. Non-GCC expatriates need a work permit and residence sponsorship, along with immigration processing, Emirates ID registration, health insurance, and other statutory enrolments. Some employees may already have UAE residency, eliminating the need for a new visa.

The EOR manages essential aspects of local employment, while the client retains control over day-to-day work and performance. WPS, the Wage Protection System, ensures employees receive their registered salaries and maintains a direct link between the employee's legal employer, employment contract, and salary payment.