Global Employer of Record (EOR) in the UAE

Expanding into new jurisdictions demands precise attention to local compliance, especially when employing staff. The United Arab Emirates imposes a complex set of requirements covering immigration, labour contracts, payroll, tax, and regulatory filings. Employers must also navigate restrictions on foreign hires, currency controls, employee classification, and multi-country tax exposure— all within a legal framework that differs sharply from Western norms.

Failure to meet UAE legal standards can result in blocked work permits, penalties for late or improper wage payments, or unexpected exposure to corporate tax through Permanent Establishment. Differences in language, culture, and business practice further raise the risk of operational missteps.

For international employers who need to hire in the UAE without setting up a local entity, the Employer of Record (EOR) model is the recognised legal route. Acumen International acts as your local employer, handling onboarding, work permits, payroll, and HR compliance, so your business can engage both local and expatriate staff without risk.

An Employer of Record (EOR) is a licensed local entity that legally employs staff on behalf of a foreign company. The EOR becomes the formal employer for regulatory, tax, and payroll purposes, while the client company retains day-to-day management and operational control.

In the UAE, using an EOR allows international employers to hire and pay local or expatriate employees without establishing a local subsidiary. The EOR assumes full responsibility for employment contracts, work permits, payroll administration, and statutory compliance under UAE law.

1. Legal employment of local and expatriate staff without requiring a UAE-registered entity.
2. Rapid onboarding and deployment of employees, with EOR able to secure work permits and visas as the official sponsor.
3. Full compliance with UAE labour law, immigration, and payroll regulations, including locally registered contracts and wage payment via the Wage Protection System (WPS).
4. Mitigation of non-compliance and employee misclassification risk, as the EOR assumes formal employer liability.
5. Single point of accountability for all local HR administration, benefits, and statutory entitlements, including end-of-service gratuity and health insurance where mandated.
6. Protection against Permanent Establishment (PE) risk, with all local staff engaged under the EOR entity rather than the foreign company.
7. Streamlined market entry and exit, allowing employers to scale up or down without forming or dissolving a UAE subsidiary.
8. Support for business transitions, including mergers, acquisitions, and workforce transfers.
9. Reduced administrative burden and predictable employment costs, consolidated into a single service agreement and monthly invoice.
10. Immediate response to regulatory changes or audits, with all local filings, contracts, and records maintained by the EOR.

* Per one Employee
** Costs vary from country to country

• Labour Market
  Over 85% of the UAE workforce is comprised of foreign nationals. Most private sector jobs are held by expatriates, especially in Dubai and Abu Dhabi.
• Legal Language & Process
  Arabic is the language of all government filings, employment contracts, and court proceedings. English is widely used in business, but not accepted for official submissions.
• Business Formation & Foreign Ownership
  Recent reforms have enabled 100% foreign ownership of UAE mainland companies in most sectors, but direct employment of staff still requires a local entity or licensed EOR.
• Work Permits & Visas
  All non-citizens require employer-sponsored work permits and residence visas. Employment without sponsorship is not permitted and results in deportation and fines.
• Payroll & Benefits
  Salaries must be paid monthly via the Wage Protection System (WPS) through a UAE bank. End-of-service gratuity, paid leave, and mandatory health insurance (in Dubai and Abu Dhabi) are statutory entitlements.
• Minimum Wage
  There is no statutory minimum wage for private sector employees, but salaries must be “adequate to cover basic needs” and reflect the contract. Wage protection is enforced via the WPS.
• Business Environment
  The UAE is consistently ranked in the global top 20 for ease of doing business, driven by rapid company formation, strong infrastructure, and active support for foreign investment and startups.
• Economic Sectors
  Growth areas include technology, finance, renewable energy, logistics, tourism, and advanced manufacturing, in addition to oil and gas.
• Labour Inspections & Enforcement
  The Ministry of Human Resources and Emiratisation (MOHRE) regularly audits companies for compliance. Penalties for wage, permit, or contract breaches are immediate and can result in business suspension.
• Permanent Establishment & Tax
  The UAE imposes a 9% federal corporate tax on certain business profits. Engaging staff locally without a licensed entity or EOR risks triggering Permanent Establishment and tax obligations.

Why Choose Acumen as Your Employer of Record in the UAE

Acumen International enables foreign companies to employ staff in the UAE legally and efficiently, without the need for local incorporation. We deliver:

• Direct sponsorship and onboarding of local and expatriate employees, using our own licensed mainland and free zone entities.

• Management of all government interactions in Arabic, including work permit and residency applications, contract registration, and payroll reporting.

• Payroll processing through the Wage Protection System, with end-to-end compliance for all statutory entitlements, benefits, and exit payments.

• On-the-ground support for urgent hires, government inspections, or audit responses, backed by local compliance expertise.

Our global employment solutions are based on operational experience in high-compliance and high-scrutiny environments, including regulated sectors and complex cross-border assignments.