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The legalities of an Employer of Record (EOR) in the UAE

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The legalities of an Employer of Record (EOR) in the UAE

Elevate Your Business in the UAE with TXM’s Employer of Record Solutions

In the dynamic business landscape of the UAE, managing HR functions like payroll, visa processing, and compliance can be overwhelming, especially when operating across borders. That’s where TXM steps in, offering Employer of Record(EOR)solutions that streamline your HR processes, allowing you to focus on what matters most—growing your business.

The legalities of an Employer of Record (EOR) in the UAE

The legalities of an Employer of Record(EOR)in the UAE are quite specific due to the country’s unique employment laws and regulations. Here’s a summary of the key points:

  • Employment Laws Variation: The UAE’s employment laws vary across its seven federation states, with 35 Free Zones where companies must operate under specific laws related to taxation, foreign ownership, employment, profits, and capital.

  • Remote Working System Rights: Employers have the right to choose working hours for remote employees and can abolish the remote working system if rules are broken. They must treat remote and in-office employees fairly and provide the necessary tools for remote work.

  • Statutory Working Hours and Overtime: The statutory working hours are 48 hours per week, with overtime pay at 125% per hour during the workday and 150% per hour for evening shifts and weekends.

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  • Paid Public Holidays: Employees are entitled to paid public holidays, which include both Islamic and national holidays.

  • Fixed-term Employment Contracts: Only fixed-term employment contracts are allowed, with a maximum duration of three years, which can be extended for another fixed term.

  • Probation and Notice Periods: A maximum probationary period of six months is allowed, during which employment can be terminated with 14 days’ notice. If an employee leaves during probation to start another job in the UAE, a 30-day notice is required.