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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

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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. Thatโ€™s where TXM steps in, offering Employer of Record(EOR)solutions that streamline your HR processes, allowing you to focus on what matters mostโ€”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 countryโ€™s unique employment laws and regulations. Hereโ€™s a summary of the key points:

  • Employment Laws Variation: The UAEโ€™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 daysโ€™ notice. If an employee leaves during probation to start another job in the UAE, a 30-day notice is required.