Article
9 min read
How to Hire Using an Employer of Record in UAE (2025 Edition)
Employer of record

Author
Ellie Merryweather
Last Update
June 27, 2025

Table of Contents
What is a UAE Employer of Record?
Top Reasons to Use an EOR in the UAE
How to hire in the UAE: Step-by-step guide
How Much Does an EOR in UAE Cost?
Which UAE EOR Should You Choose?
Is Deel Employer of Record a Strong Choice for Hiring in the UAE?
Employment Compliance Tasks an Employer of Record Manages in UAE
Hire Employees in UAE Confidently with Deel Employer of Record
Key takeaways
- Setting up an entity in the United Arab Emirates (UAE) to hire local talent can take months and cost up to AED 270,660 in legal, tax, and payroll setup.
- A UAE Employer of Record covers pension, social security, contracts, and data protection under UAE labor laws, ensuring full compliance without the headache.
- Deel EOR owns its UAE entity for full control, supports hiring in 150+ countries, delivers transparent pricing, real-time compliance monitoring, and has top G2 ratings.
Employing talent in the United Arab Emirates (UAE) unlocks strategic growth across the Gulf region. With booming industries from fintech to tourism, hiring employees in the UAE brings essential local market insights and credibility. However, ensuring compliance with local labor laws, including pension contributions for UAE nationals, overtime pay, and adherence to the UAE labor law, can make hiring complex and risky.
The pain of entity setup (long registration times, costly licensing, and complex payroll) often slows global companies down. Navigating Federal Decree-Law on data protection adds another layer of challenge. Mistakes can lead to fines, back taxes, or data breaches.
An Employer of Record (EOR) solution eliminates these headaches. An EOR in the UAE like Deel acts as the local employer, managing payroll, benefits, and compliance, so you can hire quickly and compliantly without setting up a costly entity. Deel’s wholly-owned UAE entity, transparent pricing, and global reach across 150+ countries make scaling your team in the UAE simple and cost-effective.
What is a UAE Employer of Record?
An Employer of Record (EOR) is an organization that hires your talent in the country through its UAE entity so that you can skip the long and costly incorporation process and onboard new employees fast and compliantly.
The EOR is the local employer responsible for payroll, tax, and benefits compliance. You retain operational control of your team’s work. This split shifts liability for compliance—like the mandatory 5% pension contributions for UAE nationals—to the EOR, reducing your legal risk.
Deel’s EOR services in UAE leverage a fully licensed, wholly-owned UAE entity to ensure all obligations—pension, overtime pay, data privacy—are met through a single global platform.
Top Reasons to Use an EOR in the UAE
Using an EOR provider in the UAE lets you hire fast and compliantly without the pain of entity setup.
- Speed to market: Hire within days instead of waiting 2–4 months for entity formation and licensing.
- Cost effectiveness: Transparent, flat fees from Deel include pension contributions and eliminate hidden costs.
- Compliance assurance: Automate overtime tracking and pension contributions for nationals.
- Risk mitigation: Shift liabilities for payroll, benefits, and data protection compliance to the EOR.
- Focus on growth: Offload contracts, visas, payroll, and health insurance administration to Deel’s platform.
Continuous Compliance™
How to hire in the UAE: Step-by-step guide
Follow this 8-step checklist to onboard employees in the UAE quickly and compliantly with an EOR.
1. Choose an EOR with a wholly-owned UAE entity
Select an EOR service in the UAE with a local license to guarantee compliance with labor laws and pension rules. Deel’s UAE entity is approved by the General Pension and Social Security Authority, ensuring pension contributions for UAE nationals. This also means the EOR assumes local legal risks.
Tip: Confirm entity ownership and licensing before signing.
2. Book a demo and verify social proof
Request a demo to see payroll runs, contract templates, and compliance dashboards in action. Check case studies and client testimonials for EOR services in Germany. Scan reviews on G2 and Trustpilot, where Deel EOR holds a 4.8/5 average.
Tip: Request a customer reference in your industry to confirm German payroll accuracy and compliance.
3. Request a transparent EOR quote
Get a detailed breakdown of gross salary, pension contributions, and Deel’s flat fee. Transparent pricing ensures you budget accurately with no surprises.
Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?
4. Submit a 12–24-month hiring plan
Share your growth roadmap. Deel uses AI insights to recommend salary bands and benefits aligned with the UAE market. This helps budget for statutory paid leave, sick pay, and parental leave entitlements.
5. Create the employment contract in the platform
Use compliant templates reflecting UAE labor law, including probation periods up to six months and overtime pay. Add role-specific clauses and leverage Deel IP Guard for intellectual property protection.
Tip: Customize probation durations within legal limits for flexibility.
6. Confirm the candidate’s right to work
Verify visa status, Emirates ID, and residency permits. Differentiate between UAE nationals (pension eligible) and expatriates.
7. Run the onboarding workflow
With Deel EOR, every onboarding is adapted to local labor laws, supported by a dedicated onboarding manager. Within the platform, new hires can seamlessly verify identities and work-permit status, complete compliance documents and payroll information, and review and sign employment agreements.
Tip: Automate reminders for benefit opt-in deadlines to maximize employee satisfaction.
8. Maintain ongoing compliance
Monitor hours, leave balances, and contract renewals with Deel’s Compliance Hub. The EOR handles severance pay and labor inspections, ensuring you meet all obligations.
Deel Employer of Record
How Much Does an EOR in UAE Cost?
Your total employment cost includes gross salary, statutory expenses, and EOR fees. Pension contributions apply only to UAE nationals.
Factor | Your own UAE entity | Deel EOR |
---|---|---|
One-off costs | AED 130,517 | AED 0 |
Annual, recurring costs | AED 140,143 | AED 0 |
Deel Employer of Record service fee | N/A | (AED 26,398 / employee) |
Estimated total annual costs | AED 270,660 | AED 26,398 |
Time to first hire | 2-4 months | 1-2 business day(s) |
Deel’s transparent, flat-fee pricing simplifies budgeting and eliminates surprise expenses.
Which UAE EOR Should You Choose?
Look for an EOR in the UAE that offers:
- Wholly-owned local entity: Assumes legal liability for pensions and labor compliance
- Compliance expertise: Real-time monitoring, local legal teams, and up-to-date contracts
- Platform breadth: Recruiting, onboarding, payroll, benefits, mobility, and IP protection in one system
Is Deel Employer of Record a Strong Choice for Hiring in the UAE?
Absolutely. Deel’s Employer of Record services in the UAE combine:
- Wholly-owned UAE entity ensuring full compliance with pension and labor laws
- Global reach across 150+ countries for seamless expansion
- Transparent pricing with no hidden fees
- Automated payroll, benefits, and statutory contributions for UAE nationals
- Real-time compliance monitoring and data protection
- Fast onboarding reduces time-to-hire from months to days
- Risk mitigation for misclassification and labor penalties
- Integrated platform for contracts, payroll, benefits, and mobility
Deel’s solution lets you focus on growing your team in the UAE while staying fully compliant and cost-effective.
Discover how Deel streamlined Tiny Studio’s global workforce management
In its early stages, the co-founders of Tiny Studio envisioned it as a remote company, believing that a global workforce offered distinct advantages over a location-bound setup. The primary motivation was the opportunity to tap into the international talent pool and find top-notch candidates who were not only skilled for the job but also aligned with the company culture.
Recognizing the complexity of managing a dispersed team, it sought a partner capable of navigating the complexities of global hiring. The Tiny Studio team knew they needed to ensure contractual compliance across different countries while maintaining operational simplicity through one platform where they could easily handle and manage their workforce. Deel emerged as the clear solution, allowing the team to realize their vision for a remote company through streamlined global HR.
"Deel has enabled us to hire and manage an amazing number of people in a short time while also saving money. We would've likely needed to hire more people to assist with these processes.” -- Oliver Low, CEO of Tiny Studio
Employment Compliance Tasks an Employer of Record Manages in UAE
Category | UAE Summary |
---|---|
Statutory employer costs | Social security contributions apply to nationals only, at 20% of gross remuneration. 5% pension contribution required for UAE nationals only. |
Employment contracts & probation rules | Written contracts must be provided before the employee’s start date. Standard probation is 30 days, but can last up to 180. During probation, either party may terminate with 30 days’ notice or immediately (per UAE Labour Law). |
Pay and working hours | Standard workweek is 40 hours. Minimum wage only applies to UAE nationals and is based on education: AED 4,000 per month for high school graduates and AED 5,000 per month for university graduates. |
Payroll compliance | Employers must maintain accurate and secure payroll records in accordance with data protection law (Federal Decree-Law No. 45/2021). |
Vacation and public holiday allowances | Employees are entitled to 30 days of annual leave, plus Hajj leave up to 30 days. 15 public national holidays, which may be taken in lieu if they fall on a weekend. |
Income taxes | There is no federal income tax on salaries in the UAE. |
Expenses, allowances, and bonuses | Governed by contract and company policy, not subject to income tax. |
Maternity and paternity leave | 60 days of maternity leave: first 45 days at 100% of their salary, followed by 15 days at 50% of their salary. 5 days of paternity leave: 100% of their salary. In case of health complications, the employer must provide mothers with 45 days of additional unpaid leave. |
Sick leave, bereavement leave, and carer’s leave | Employees are entitled to up to 15 days of paid sick leave at 100% of their salary, and a further 30 days at 50% of their salary. Other leave entitlements depend on contract and employer policy. |
Terminations and resignations | Upon termination, employees are entitled to severance pay: 21 days of wages per year of service. Notice periods range between 30 and 90 days. |
Health & safety | Governed by UAE Labour Law, including general obligations to maintain a safe workplace. Specifics depend on industry regulations. |
Misclassification risk | Misclassifying a worker can result in costly fines, back taxes, and penalties. Using an Employer of Record (EOR) helps ensure correct classification. |
Data protection & IP protection | Federal Decree-Law No. 45/2021 governs data protection. Organizations may be required to appoint a Data Protection Officer (DPO). |
Through Deel we've been able to hire more than 150 people, and relocated more than 10 employees to countries like the UAE and Switzerland.
—Luka Besling,
HR Manager at Revolut
See how Revolut chose Deel Immigration, Deel EOR, and Deel Contractors because of Deel's global presence, hands-on support, and ability to keep up their speed.
Hire Employees in UAE Confidently with Deel Employer of Record
Ready to hire fast and compliant in the UAE? Deel’s Employer of Record in UAE service eliminates the pain of entity setup and legal complexity. With transparent pricing and a wholly-owned UAE entity, you get clear costs upfront and peace of mind on compliance.
Book a demo today to see how Deel simplifies hiring in the UAE with seamless onboarding, payroll automation, and real-time compliance alerts—accelerate your growth in the region now.
Platform Tour
FAQs
How quickly can I onboard employees in the UAE using Deel?
Deel enables onboarding in days by managing contracts, visa paperwork, and payroll setup through its platform.
Do employees need local bank accounts?
Yes, employees typically need a UAE bank account for salary payments; Deel supports document collection and verification.
What type of employment contracts are used?
Deel uses compliant fixed-term or indefinite contracts with probation periods up to six months, per UAE labor law.
How is tax withholding handled?
There is no federal income tax in the UAE, so Deel does not withhold income tax but ensures compliance with social security and pension contributions for nationals.
When are payroll deadlines?
Payroll is typically processed monthly; Deel automates payment schedules aligned with local regulations.
What benefits are mandatory?
5% pension contributions for UAE nationals, 30 days annual leave after one year, 90 days maternity leave, and 15 days sick leave annually.
Can I terminate employees during probation?
Yes, probation can last up to six months, allowing termination without notice under UAE labor law.
How does Deel ensure data protection compliance?
Deel complies with UAE Federal Decree-Law No. 45/2021 by securing employee data and appointing a Data Protection Officer as required.
Does Deel handle severance pay?
Yes, Deel manages severance according to UAE law—21 days’ pay per year for the first five years, then 30 days thereafter.
What risks does using Deel mitigate?
Deel reduces risks of misclassification fines, payroll errors, and non-compliance with labor and data protection laws.

About the author
Ellie Merryweather is a content marketing manager with a decade of experience in tech, leadership, startups, and the creative industries. A long-time remote worker, she's passionate about WFH productivity hacks and fostering company culture across globally distributed teams.