Dubai Employment Laws for Expat Employees 

Expanding your network into the UAE gives your business access to new markets, a wealth of expat talent and fantastic tax incentives. As one of the seven Emirates within the United Arab Emirates, Dubai is widely renowned as a thriving hub for international talent with 80% of its population made up of expats.

Dubai offers expats the chance to enjoy a tax-free luxurious lifestyle, with access to its growing economy. Business in the UAE differs in many ways from in the Western world. Employers need to consider Dubai’s employment laws when hiring and managing expatriate workers. Below, we explore the labour law in the UAE plus local laws and regulations that apply to the hiring of expats in Dubai. 

Before you can start hiring international talent you will need to ensure your business has an establishment card. This vital business document acts as a corporate identification card issued by the immigration authority. This legal document helps businesses access government services and many other administrative processes including company payroll.  

Having an establishment card means the UAE authorities officially recognise your business. Without this card, sponsoring your expat employee visas, will not be possible.  

Securing work visas for the UAE generally, requires a lot of paperwork and even medical tests before any visa is granted. There are multiple steps involved and as the employer you are responsible for issuing the work permit and visa. Your expat employee will need to provide the right documentation and pass a medical health check. 

Dubai employment laws state that all employers need to apply to the Ministry of Labor for their employees' work permits. These permits are usually only valid for two months, to allow your employee to enter the UAE for a short period. This is when the application for a work visa can be made. Employers can apply for their employee's visas on the General Directorate of Residency and Foreigners Affairs. 

Securing your employee's labour card is the next step once the work permit and visa are granted. As part of the labour laws in the UAE, all employees are required to have a UAE labour card. Applications need to be made within 60 days of your employee's arrival into the country after their visa is approved. If your business is found to have employees working with expired labour cards, you will be fined by authorities. 

Dubai is considered to be a relatively liberal region because of its expat residents. However, the business culture in the UAE might be very different from what your expat employees are accustomed to back home. Expat employers in Dubai need to make sure that employers know that the UAE is a Muslim country, so making them aware of the local traditions and sensitivities that come with this will help support their transition overseas. The business culture also tends to mirror the UAE’s hierarchical society. Most companies have a vertical hierarchy with older and experienced staff in decision-making positions.  

In early 2024, the UAE introduced new labour laws that are redefining the workplace. These new laws are focused on improving work standards for all employees. The typical working hours for private sector businesses have moved from a 48-hour working week to a shorter 40-hour work week. These laws also brought in tighter protections against discrimination in the workplace and additional maternity and paternity leave benefits.  

One of the biggest changes in the Dubai employment laws is that employers should be aware of is the move from unlimited contracts to fixed-term contracts only. This means as the employer you can only offer your employees contracts for up to three years. All contracts can be renewed after this period. 

Healthcare in the UAE is well-developed with modern facilities and high-quality care in both the public and private sectors. However, the healthcare public sector is primarily designed to support UAE residents, making it difficult for expats to access public services. As a result, there are more private healthcare facilities than public services. Expats living in the UAE can easily access high-quality private care. 

As part of Dubai’s Labour Laws, all registered employers are legally obligated to provide their expat employees with health insurance. The Dubai Health Authority (DHA) requires a minimum standard of health insurance that all employers need to have in place for non-resident employees. The cost of this cannot be deducted from your employee's salary. This law was brought in to ensure all expats can access healthcare without any financial stress or adding any additional pressure on the public healthcare system. If your new expat employees are relocating with their families, employers are not legally obligated to provide health cover for any dependents. This cost would be the responsibility of your employees.

Failing to adhere to Dubai’s health insurance laws can leave your business vulnerable to hefty fines, and even restrictions in securing visas for future expat employees. This ultimately will have a lasting impact on your business so it's best to make sure your employee's health insurance meets legal requirements.  

At Allianz Partners we help corporate groups and international organisations of all sizes to look after the health and wellbeing of their employees. Get in touch with us today to discuss our international health insurance designed for businesses.