Employer Of Record For Rapid Market Entry And Compliance

An EOR will legally employ your staff under a UAE license. The provider handles payroll and salary disbursement, drafts employment contracts in line with UAE labour law, manages work permits and residence visas, completes medical and Emirates ID steps, administers statutory benefits and end of service calculations, coordinates insurance, and issues a single invoice for employee administration.

Typical timeline runs 2 to 6 weeks from signed offer to visa stamping for most nationalities. Free zone hires sometimes finish in two weeks. Mainland hires often take four to six weeks because of MOHRE and immigration procedures. Sector approvals or missing documents create delays. Include target dates in your SLA and prepare documents early.

EOR fees usually range 10 to 20 percent of gross payroll or a fixed monthly fee per employee. Expect employer billed items such as health insurance, visa and government fees, and end of service accruals. Example scenario: AED 20,000 salary with a 15 percent EOR fee equals AED 23,000 monthly before local government charges and one-off onboarding costs.

An EOR assumes statutory employer obligations under UAE law. Co-employment risk appears when your operational control overlaps with employer duties. Reduce risk by defining responsibilities in the master services agreement, keeping performance management with your managers, requiring SLAs for payroll and visas, and including IP and confidentiality clauses in local contracts.

Plan the transfer in writing with the EOR and your new entity. Review and align local contracts, agree transfer dates, and arrange visa and work permit handover per MOHRE rules. Preserve employee seniority and ensure end of service accruals move or settle. Expect a 2 to 8 week process depending on approvals and documentation.