Recruitment Process In The UAE (An Employer's Guide)

Recruitment Process In The UAE (An Employer's Guide)

In the fast-paced world of business, hiring the right people can make or break your success. But with so many options, how do you find the perfect fit? In this article, we'll break down the Recruitment Process In UAE, offering clear insights to help you secure top talent.

Cercli’s global HR system empowers your team to hire smarter in the UAE, offering clear, step-by-step support to help you find the different types of hires whether locally or globally and have the choice to make confident hiring decisions from day one.

What You Need To Know Before Hiring In The UAE

All employer-employee relationships in the UAE private sector are governed by the UAE Labour Law (Federal Decree Law No. 33 of 2021, amended by No. 20 of 2023). This law repeals the older 1980 law and modernises key aspects of employment. It applies to all private sector employees—UAE nationals and expatriates alike—except domestic workers and those in the federal government, police, and armed forces.

The law outlines rights and responsibilities around employment contracts, work models, leaves, working hours, end-of-service benefits, and anti-discrimination measures. It also introduces flexibility with various work arrangements like part-time, temporary, and remote work.

Before hiring, you must review the full scope of these regulations to ensure your business operations and HR policies align with legal requirements.

Employment Contracts

Since the updated law took effect in February 2022, only limited-term (fixed duration) contracts are permitted. These contracts must clearly define the job title, work location, wage, working hours, leave entitlements, and termination conditions.

Contracts may be renewed or extended, but no “unlimited” contracts are allowed. All contracts must be registered with the Ministry of Human Resources and Emiratisation (MOHRE).

This clarity in contractual relationships protects both employer and employee from disputes and ensures enforceability in case of disagreement. 

Understanding Working Hours and Overtime Regulations

Standard working hours are capped at 8 hours per day or 48 hours per week. Workers must not exceed 5 consecutive hours without at least a one-hour break, and overtime must be compensated fairly.

Daily overtime is capped at 2 hours, and workers must not exceed 144 hours over any 3-week period. Night work (between 10 pm and 4 am) entitles employees to 50% extra pay, unless they're shift workers. Weekly rest is mandatory: employees must receive at least one full paid day off per week, with public holidays also being fully paid.

Make sure you structure shifts and rosters carefully to avoid breaching these limits. 

The Importance of Emiratisation in Hiring

The UAE government is actively pushing for more Emiratis in the private workforce through its Emiratisation initiative. Companies with 20-49 employees in select sectors must hire at least two Emiratis by the end of 2025. Larger companies (50+ employees) must meet a 2% annual Emirati workforce growth target.

All Emirati employees must be registered on Nafis, enrolled in the pension and retirement system, and paid through the Wage Protection System (WPS).

Penalties for non-compliance are steep. Fines of AED 108,000 per missing Emirati will be imposed in January 2026 for 2025 shortfalls.

Meeting these quotas is not only a legal obligation—it also provides access to government incentives, including reduced MOHRE fees and preferential access to public contracts. 

Work Permits and Visas

Before an expatriate can work in the UAE, you must: Apply for a work permit through MOHRE. Secure a residency visa. Ensure the employee undergoes medical tests, signs the official labour contract, and is registered with health insurance.

These steps are crucial—failure to properly sponsor and document an employee can result in serious fines and potential business restrictions. 

Anti-Discrimination Policies for a Safe Work Environment

As an employer, you must ensure a safe and respectful work environment. Any violations can lead to severe penalties, lawsuits, and reputational harm.

This includes: Enforcing a zero-tolerance policy on harassment and abuse. Ensuring equity in pay and promotions. Allowing grievance reporting procedures within your organisation. 

Leave Entitlements

Understanding the various leave types and managing them correctly is essential to compliance and employee satisfaction.

Annual Leave 

Employees are entitled to 30 calendar days of paid annual leave per year once they have completed one year of service. Those who have worked more than six months but less than a year are entitled to two days of leave per month. Employers must allow employees to take this leave in the year it is accrued or carry it forward if mutually agreed. Leave days not taken may be encashed upon termination, calculated based on the employee’s basic salary. 

Maternity Leave

Female employees are entitled to 60 calendar days of maternity leave—45 days at full pay and the next 15 at half pay. They may also take an additional 45 days of unpaid leave if medically necessary. If the employee gives birth to a child with health complications or disabilities, an additional 30 days of paid leave is granted, followed by 30 more unpaid days if needed. Employers are prohibited from terminating employees due to maternity. 

Paternity Leave

Fathers working in the UAE’s private sector are entitled to five working days of paid paternity leave. You can take this leave anytime within the first six months after your child’s birth, giving you the flexibility and time you need to support your growing family. 

Parental Leave

In the UAE, employees, whether mothers or fathers, are entitled to five working days of paid parental leave to care for their newborns. This leave can be taken all at once or spread out within six months from the date of birth. 

Sick Leave

After probation, employees are entitled to up to 90 days of sick leave per year. The first 15 days are paid in full, the next 30 at half pay, and the remaining 45 days are unpaid. Sick leave must be supported by a medical certificate, and employees must notify their employer within three working days of falling ill.

Other Types of Leave

• Bereavement Leave: 3–5 paid days, depending on the relationship to the deceased. 
• Study Leave: 10 working days per year for exams, if the employee has been with the company for at least two years and is enrolled in an accredited institution. 
• National Service Leave: Fully paid leave for UAE nationals performing mandatory military service.

Employers should ensure clear internal policies for approving and tracking leave to avoid disputes and maintain productivity. 

Probation Periods

The probation period in the UAE can’t exceed six months or be extended. When the employee finishes the probation and continues working for the company, the probation period will amount as part of their service.

If the employer wants to terminate the contract during probation, they must give 14 days prior notice. Suppose the employee resigns during the probation period with the intention of leaving the UAE. In that case, they must provide a 14-day prior notice in writing.

Suppose the employee wants to change jobs to join another UAE company. In that case, they must provide a written notice of a minimum of one month. The new employer must also compensate the current employee’s recruitment costs unless otherwise agreed. 

End of Service Benefits

One of the most significant financial responsibilities for employers is the end of service gratuity, which acts as a severance payment for employees who have completed at least one year of continuous service. 

Gratuity Calculation

For employees on limited-term contracts, gratuity is based solely on their basic salary and calculated as follows: 21 days of basic salary for each of the first five years of service. 30 days of basic salary for each additional year thereafter.

The total gratuity amount must not exceed two years’ total salary. Any unpaid leave taken by the employee may be deducted from the gratuity calculation. Importantly, if an employee is terminated for cause under Article 44 (gross misconduct), gratuity may be forfeited. 

Pro Rata Entitlements

Employees who resign or are terminated before completing a full year of service are not entitled to end of service gratuity. However, if they complete more than one year but less than five, gratuity is calculated on a prorated basis.

Employers must pay this gratuity within 14 days of the employee’s last working day to remain in compliance with the law. 

Termination

Ending an employment relationship in the UAE requires careful handling to avoid disputes and penalties. 

Valid Reasons for Termination

An employer may terminate a contract for several reasons, including poor performance, redundancy, misconduct, or non-renewal of a fixed-term contract. However, dismissals must not be discriminatory or arbitrary. 

Notice Periods

A minimum of 30 days’ written notice is required from either party unless otherwise specified in the employment contract (not exceeding 90 days). If either party wishes to terminate the contract while the employee is on leave, the notice period begins only once the employee returns to work, unless both parties agree otherwise. 

Immediate Termination for Cause Under Article 44

An employee can be terminated without notice for reasons such as falsifying documents, leaking trade secrets, or repeated violation of safety rules. Such termination must be supported by documented evidence and must comply with due process. 

Redundancy and Restructuring

If roles are eliminated for economic or strategic reasons, employers must clearly document the rationale and offer end of service benefits. Arbitrary dismissal claims can be avoided by maintaining transparent communication and consistent documentation. 

Termination Protections

Employers may not terminate employees based on: Gender, race, religion, or disability. Maternity or pregnancy. Filing a complaint or initiating a legal claim against the employer.

To ensure fair termination, employers should conduct internal investigations, keep written records, and issue formal warnings if applicable. 

Conflict Resolution

Disputes between employees and employers are now handled by the Court of First Instance, instead of the Court of Appeal, for cases involving decisions made by the MOHRE. This shift aims to speed up the dispute resolution process.

Important Notes for Employers Disputes related to termination must be filed within two years of termination. Employers can resolve disputes by paying 50% of the minimum fine or repaying financial incentives.

Related Reading

• UAE Working Days
• Dubai Basic Salary
• Types Of Leave In UAE

What Does a Company Need to Hire Employees in the UAE?

Before initiating the hiring process in the UAE, companies must navigate a structured legal and administrative framework. The UAE has clear regulations governing business operations and employment, and it’s critical for employers to align with these requirements from day one. Here are the foundational steps every company should follow before recruiting staff in the Emirates.  

1. Establishing a Legal Entity

The first and most essential step is setting up a formal legal entity. This typically takes between 2 to 3 months, depending on the business activity, chosen jurisdiction (mainland or free zone), and document readiness. 

Companies must obtain a valid trade license, which defines the type of business activities they are authorised to conduct. Options include: 

• Limited Liability Companies (LLCs) in the mainland  
• Free Zone Entities with 100% foreign ownership  
• Branch offices of foreign companies
  

Each has distinct requirements and benefits, including rules on local sponsorship, tax obligations, and the ability to contract with government or private clients. You cannot hire employees directly unless your company is legally registered and licensed in the UAE.  

2. Recruitment Process & Hiring UAE Nationals

When hiring, companies must ensure their recruitment practices align with Emiratisation policies, particularly for certain sectors like banking and insurance, where hiring UAE nationals is mandatory at specific quotas. 

The process includes: 

• Advertising roles on official portals such as Nafis, Tawdheef, or other job platforms  
• Screening candidates and conducting interviews  
• Issuing formal offer letters with a transparent breakdown of salary components and benefits
  

For UAE nationals, employers must register employees with the General Pension and Social Security Authority (GPSSA) to manage pensions and end-of-service entitlements. The salary and benefits must adhere to UAE Labour Law, including provisions around working hours, leave, and termination.  

3. Sponsoring Work Visas for Foreign Employees

To hire expatriates, employers must act as sponsors for employee residence and work permits. This process includes: 

• Securing initial approval from the Ministry of Human Resources and Emiratisation (MOHRE) or relevant free zone authority
• Applying for a work entry permit
• Completing medical tests, Emirates ID registration, and stamping the residence visa in the employee’s passport
  

While this visa process is relatively streamlined, it can be impacted by geopolitical conditions or changes in immigration policies. It's wise to build sufficient time into your hiring plan—especially if you're staffing multiple roles or relying heavily on overseas talent.  

4. Managing Compliance and Ongoing Obligations

The UAE enforces strict compliance across all business operations. Once your company is operational, you are expected to: 

• Maintain accurate HR records and employment contracts  
• Set up compliant payroll systems, including WPS (Wage Protection System) registration  
• Provide health insurance coverage as mandated by local laws  
• Stay up to date with changes in labour law, visa renewals, and employee entitlements
  

Failure to comply can result in heavy fines, license suspension, or legal action. It’s crucial to engage experienced legal or HR professionals—either in-house or via a trusted outsourcing partner—to help you stay aligned with local regulations. 

One Platform for MENA Businesses to Manage Their Workforce

Transform your HR operations with Cercli, the only platform built specifically for MENA businesses that unifies all your workforce management needs in one powerful system. 

Manage your entire team—whether local or distributed across 160+ countries—with our comprehensive solution that handles multi-currency payroll, leave management, onboarding, and compliance documentation tailored to the unique requirements of the MENA region. 

Eliminate the complexity of using multiple fragmented tools and enjoy the efficiency of a single source of truth that keeps your business fully compliant with local regulations while simplifying every aspect of workforce management. 

Whether you're managing a growing team of 25 or coordinating 500+ employees across multiple countries, Cercli provides the localised expertise and streamlined processes that MENA businesses need to scale confidently and manage remote teams effectively. 

Experience the only HR platform truly designed for the way you do business in the Middle East. Book a demo to speak with our team to learn more today.

Related Reading

• How To Calculate Salary Per Month In UAE
• How To Register WPS In UAE
• Payroll Process In UAE
• How To Hire Employees In Dubai

Step-by-Step Guide on the Recruitment Process In The UAE

Hiring in the UAE isn’t just about finding the right candidate—it’s about navigating a structured process that’s designed to keep everything compliant, efficient, and clear for both employers and employees. Whether you’re a startup or a global enterprise, here’s how the recruitment process typically unfolds:

1. Start with a Strong Job Ad

Everything begins with a well-crafted job description. This isn’t just about listing responsibilities—it’s your first chance to attract the right talent. Be specific about the role, required qualifications, and the kind of person who would thrive in the position. Once it's ready, post it on popular platforms like Bayt, LinkedIn, or GulfTalent. You can also tap into recruitment agencies or industry-specific job boards if you're targeting niche roles.

2. Screen and Shortlist Candidates

Once applications start rolling in, the real work begins. Screen resumes for qualifications, experience, and any red flags. Follow this up with interviews to assess both technical skills and cultural fit. In the UAE, it’s common to include multiple rounds—sometimes including a panel or a task-based assessment, especially for mid- to senior-level roles.

3. Issue an Employment Contract

Once you’ve found your ideal candidate, the next step is to formalise the offer. All employment contracts in the UAE must be in writing and comply with labour laws. Previously, employees on fixed-term contracts had a maximum duration of four years, with limitations on contract exit. However, recognizing the need for flexibility in attracting and retaining talent, the four-year limit has been removed. Employment contracts include key details like job title, salary, working hours, and leave entitlements. 

4. Secure the Visa and Work Permit

If you’re hiring a non-UAE national (which is very common), the employer is responsible for handling the visa process. This includes:

• Applying for a work permit through the Ministry of Human Resources and Emiratisation (MOHRE).
• Submitting required documents: passport copy, medical records, signed contract, etc.
• Arranging for the employee’s Emirates ID and medical exam.
  Once approved, the employee receives a residence visa tied to their employment, allowing them to legally live and work in the UAE.

5. Onboard and Integrate

With paperwork out of the way, onboarding is where you lay the foundation for long-term success. This step includes:

• Introducing your new hire to the company culture, policies, and tools.
• Giving them access to essential systems and team communication channels.
• Providing initial training or mentoring as needed.
  A structured onboarding experience can make a huge difference, especially for expats adjusting to life in the UAE.

Book a Demo to Speak with Our Team about Our Global HR System

Cercli is the only HR platform designed specifically for MENA businesses. Our solution unifies all your workforce management needs in one powerful system, so you can finally eliminate the complexity of using multiple fragmented tools. 

With Cercli, you’ll enjoy a single source of truth that simplifies every aspect of HR while keeping your business compliant with local regulations. 

Whether you’re managing a growing team of 25 or coordinating 500+ employees across different countries, Cercli provides the localised expertise and streamlined processes that UAE businesses need to scale confidently. 

‍Book a demo today to see how we can help you transform your HR operations. 

Related Reading

• How To Calculate Salary Per Day In UAE
• Unpaid Leave UAE
• Leave Salary Calculation In UAE
• HR Duties And Responsibilities In UAE
• How To Calculate Public Holiday Pay In UAE

‍

‍