UAE employment runs on an employer-sponsorship model: foreign workers cannot self-sponsor a work-based residence visa. On the mainland the file runs through the Ministry of Human Resources and Emiratisation (MOHRE); in each free zone, the zone authority is the labour and immigration counterparty. Employers also work with GDRFA or ICP for entry permits and residency stamping. The 2022 reform (Federal Decree-Law No. 33 of 2021) modernised contract types and the post-termination grace period. This guide covers the nine-step workflow, quota mechanics, costs, WPS, and end-of-service rules.
At a Glance
| Aspect | Mainland (MOHRE) | Free Zone | Notes |
|---|---|---|---|
| Labour authority | MOHRE | Free-zone authority (e.g. DMCC, JAFZA, DAFZA) | Each zone runs its own employment desk |
| Immigration authority | GDRFA / ICP | GDRFA / ICP | Federal across both routes |
| Establishment card | MOHRE establishment card | Free-zone immigration card / establishment card | Required before any visa |
| Visa quota basis | Office area, activity, labour-card capacity | Packet linked to facility (flexi-desk, office) | Free-zone quotas are pre-defined |
| Contract registration | MOHRE work contract (Arabic + English) | Free-zone employment contract | 2022 reform standardised mainland contract types |
| Salary payment | Wage Protection System (WPS) mandatory | WPS or equivalent zone-approved system | DIFC and ADGM apply their own employment regimes |
| Health insurance | Employer-mandated | Employer-mandated | Statutory in Dubai and Abu Dhabi |
| Cancellation | MOHRE cancellation + GDRFA visa cancel | Free-zone cancellation + GDRFA visa cancel | 6-month grace period applies |
DIFC and ADGM operate separate employment frameworks under their own common-law rulebooks (DIFC Employment Law, ADGM Employment Regulations) and are not within MOHRE jurisdiction. The mechanics below describe mainland and standard free-zone routes.
Step 1 — Get the Establishment Card
Before any employee visa can be processed, the company must be registered with the relevant labour authority. On the mainland, that means an MOHRE establishment card linked to the trade licence; in a free zone, the equivalent is the free-zone establishment card (sometimes called the immigration card or company card), issued by the zone after the trade licence is active.
The establishment card identifies the company as an employer-sponsor in MOHRE and immigration systems. Without it, the company cannot apply for work permits, register contracts, or sponsor entry permits. Renewal is annual or biennial depending on issuer. If the company is still being set up, this step happens at the tail end of the licensing process — see /business-guide/business-setup.
Step 2 — Determine the Visa Quota
Every UAE employer has a visa quota capping residence visas, calculated from licensed activity, facility and labour-card record.
- Mainland. MOHRE applies an office-area heuristic: roughly one visa per ~80 sq m of Ejari-registered office, adjusted by activity (industrial firms with on-site accommodation raise the cap; light services may sit below).
- Free zone. Each zone publishes a packet linked to facility: a flexi-desk typically 2–3 visas, a small serviced office 4–7, full offices more.
If headcount exceeds standard quota: lease a larger office, upgrade the free-zone facility, or — on the mainland — apply for a quota increase with supporting documents.
Step 3 — Approve the Job Offer
Before the employee arrives, the labour authority must approve the job offer and contract. On the mainland, this is the MOHRE work permit: the company submits the offer letter, passport copy and qualification documents and pays the fee, and MOHRE issues an electronic approval.
Mainland contracts must follow one of the types introduced by Federal Decree-Law No. 33 of 2021 (in force February 2022): full-time, part-time, temporary, flexible/flexi, and freelance via specific permits. All mainland contracts are now fixed-term (up to two or three years, renewable) — the unlimited-contract format was retired in 2022. In a free zone, the equivalent is the zone's pre-approval through its portal; the contract is registered with the zone.
Step 4 — Apply for the Entry Permit
With the work permit approved, the company applies for an entry permit through GDRFA in Dubai or ICP elsewhere. It lets the candidate enter the UAE for employment purposes; typically valid 60 days from issue and 60 days from entry to complete the remaining steps. If the candidate is already in the UAE on another status, an in-country status change is possible at extra fee. The entry permit is delivered electronically and stamped on arrival.
Step 5 — Medical Fitness Test
Every residence-visa applicant must pass a medical fitness test, arranged with DHA in Dubai, DOH in Abu Dhabi, or MOHAP in the northern emirates. The test screens for tuberculosis, HIV, hepatitis B and C, and syphilis. It takes a single appointment — chest X-ray, blood draw, brief consultation — with results in 1–3 working days. Standard, express, and VIP tiers are offered. A "Fit" result is required; "Unfit" results in some categories can block residency issuance.
Step 6 — Emirates ID
The Emirates ID is the federal identity card issued by ICP. Every resident requires one. Application is filed online through the ICP portal, typically alongside the medical-test booking; the candidate then attends an ICP service centre for biometric capture — fingerprints, photograph, signature. The ID number is generated at application; the physical card arrives later by post. Biometric capture is usually the same week as the medical and is a precondition for residence-visa stamping.
Step 7 — Stamping the Residence Visa
The final immigration step is the residence visa, issued by GDRFA or ICP and either stamped into the passport or — increasingly — issued as an e-visa. On a standard private-sector employment, residence visas run for two years; certain regulated activities and senior roles attract three-year terms. Once issued, the employee can sponsor dependents subject to GDRFA/ICP salary thresholds, open a personal bank account, register a vehicle, and access standard residency benefits. See /expat-guide/visa-types for the broader visa-category map.
Step 8 — Health Insurance
UAE law requires every employer to provide health insurance for sponsored staff. Frameworks are emirate-led: Dubai under DHA's ISAHD scheme, Abu Dhabi under DOH's mandatory scheme, and the northern emirates under MOHAP-led arrangements, with federal harmonisation progressively making basic cover mandatory nationwide. The policy must meet the minimum benefit package before the residence visa is stamped. Pricing depends on age, role and network. See /business-guide/regulations for the regulator map.
Step 9 — Wage Protection System (WPS) Registration
Once the employee is on the payroll, salaries must be paid through the Wage Protection System (WPS) — the federal payroll-monitoring framework launched in 2009 by the Central Bank and MOHRE, routing salaries through approved banks and reporting timing and amount to the labour authority. WPS is mandatory for mainland MOHRE-registered companies and enforced by most free zones; late or under-paid salaries trigger penalties.
Quotas and Office Requirements
Mainland. MOHRE's working baseline is roughly 1 visa per ~80 sq m of Ejari-registered office, moderated by activity. Rule of thumb: a 50 sq m office supports 3–5 white-collar visas; 150 sq m pushes into 8–12. For higher headcounts, a quota-increase application is filed with MOHRE.
Free zone. Each zone publishes its own packet — flexi-desk 2–3 visas, smart desk 3–6, standard 15–25 sq m office 4–8, larger units scaling with leased area. DIFC and ADGM apply their own visa frameworks linked to commercial space leased.
Costs Breakdown
Per-employee government costs for a 2-year visa typically fall in the AED 3,000–7,000 range before health-insurance premium. Indicative line-item ranges — fees vary by emirate, activity and zone:
| Line item | Indicative AED range | Notes |
|---|---|---|
| Work permit / labour card | 250 – 3,500 | Mainland MOHRE bands by skill category; free zones bundle |
| Entry permit (employment) | 500 – 1,500 | Status change inside UAE costs more |
| Medical fitness test | 250 – 800 | Standard, express, and VIP tiers |
| Emirates ID (2 years) | 270 – 370 | Federal fee + delivery |
| Residence-visa stamping | 500 – 1,200 | 2-year stamp; 3-year for certain categories |
| Health insurance (annual) | 600 – 5,000+ | Employer-paid; depends on plan and age |
| Sponsor-side admin | 500 – 1,500 | PRO services, typing centres, attestations |
Skilled and senior hires sit at the upper end; entry-level roles lower. Document attestation for academic and marriage certificates is additional. Confirm current fees on MOHRE, the free-zone portal, and GDRFA / ICP — they are regularly adjusted.
Wage Protection System (WPS)
The Wage Protection System (WPS) is the federal salary-distribution framework introduced in 2009 to guarantee timely and accurate wage payment. Salaries must be transmitted electronically through participating banks, exchange houses and bureaux that interface with MOHRE; cash or off-system transfers do not satisfy the obligation.
Each pay run, the employer (or its payroll provider) generates a Salary Information File (SIF) with each employee's basic salary, allowances, deductions and net pay. The SIF is submitted to the chosen WPS agent, which executes transfers and reports back to MOHRE. Late or missing payments — flagged after a typical 15-day grace — trigger progressive penalties: blocked work permits, fines, and labour-service suspension for repeated breaches. DIFC and ADGM operate equivalent payroll-compliance regimes.
Cancellation and Termination
The 2022 labour reform restructured how UAE employment ends.
Notice period. Standard notice runs 30 to 90 days, agreed in the contract and registered with MOHRE. Probation is capped at 6 months with shorter formal notice on either side under the 2022 framework.
Termination grounds. Federal Decree-Law No. 33 of 2021 distinguishes expiry of fixed-term, mutual consent, redundancy, gross misconduct (Article 44 — without notice), and arbitrary dismissal (compensation up to three months' pay).
End-of-service gratuity. Employees who complete at least one year of continuous service are entitled to a statutory gratuity based on the basic salary (excluding allowances): - 21 days of basic salary per year for the first five years. - 30 days of basic salary per year for each year thereafter. - Capped at two years' basic salary in aggregate.
A federal Voluntary Alternative End-of-Service Benefits Savings Scheme lets employers contribute to investment-managed funds in lieu of accruing on-book gratuity.
Visa cancellation. The employer cancels the work permit with MOHRE (or the zone) and the residence visa with GDRFA / ICP; the employee signs a cancellation acknowledgement and final settlement — outstanding salary, leave encashment, gratuity — is paid.
Grace period. Under the 2022 reform, terminated employees have a 6-month grace period to remain in the UAE and find a new sponsor (extended from the prior 30-day window).
Emiratisation. Mainland private-sector companies with 50 or more skilled employees are subject to NAFIS Emiratisation targets, with incremental UAE-national hiring quotas that rise year-on-year. Missing targets triggers monthly contributions; meeting them unlocks NAFIS incentives. Free-zone categories are generally out of scope.
Frequently Asked Questions
How does UAE employee sponsorship work?
UAE employment runs on an employer-sponsorship model: a foreign worker cannot self-sponsor a work-based residence visa. The employing company holds a labour and immigration file with MOHRE (mainland) or the free-zone authority and applies for the work permit, entry permit, medical, Emirates ID, residence visa, and health insurance on the employee's behalf. Cancellation requires a formal MOHRE / zone process and a corresponding visa cancellation through GDRFA or ICP.
How many employees can a UAE company sponsor?
It depends on the visa quota. On the mainland, MOHRE calculates from licensed activity and office area — roughly one visa per ~80 sq m, adjusted by activity. In a free zone, the quota is bundled into the facility packet: flexi-desk 2–3 visas, small office 4–7, larger units more. Higher headcounts require a larger facility or, on the mainland, a quota-increase application.
What is MOHRE?
The Ministry of Human Resources and Emiratisation (MOHRE) is the UAE's federal labour ministry — successor to the former Ministry of Labour — and the regulator for mainland private-sector employment. MOHRE issues work permits, registers contracts, runs WPS with the Central Bank, oversees the NAFIS programme, and operates inspection and dispute services. Each free zone has its own in-house labour authority.
What is the UAE Wage Protection System?
The Wage Protection System (WPS) is the federal salary-monitoring system launched in 2009 by the Central Bank and MOHRE. Employers must pay salaries through approved banks, exchange houses and bureaux that interface with MOHRE's central database. Late or under-paid salaries trigger penalties — blocked work permits, fines, and labour-service suspension for repeated breaches.
How much does it cost to hire an employee in the UAE?
Per-employee government costs for a 2-year visa typically fall in the AED 3,000–7,000 range — covering the work permit, entry permit, medical, Emirates ID, and residence-visa stamping. Health insurance is additional, depending on plan, age, and provider. Senior and skilled hires sit at the upper end; entry-level roles lower. Free-zone packages often bundle line items into a single per-visa fee.
Can a free zone company hire UAE-based employees?
Yes — a free-zone company sponsors its own employees under the zone's labour regime, regardless of where they live in the UAE. What it generally cannot do is deploy them to operate on the mainland under the free-zone licence; that requires a mainland branch, agent, or service agreement.
What is end-of-service gratuity?
End-of-service gratuity is the statutory severance benefit for every UAE employee after at least one year of continuous service, calculated on basic salary: 21 days per year for the first five years and 30 days per year thereafter, capped at two years' basic salary. The 2022 reform retained the formula. A federal voluntary scheme also lets employers contribute to managed savings funds in lieu of on-book gratuity.
Do UAE employees need health insurance?
Yes — employer-provided health insurance is mandatory. Frameworks are emirate-led: Dubai's DHA-run ISAHD scheme, Abu Dhabi's DOH mandatory scheme, and MOHAP-led arrangements in the northern emirates. Proof of insurance is required at residence-visa stamping, and the policy must meet the minimum statutory benefit package.
What's the UAE notice period?
Standard notice ranges from 30 to 90 days, agreed in the contract and registered with MOHRE or the free zone. Shorter notice applies during the 6-month probation. Termination for gross misconduct under Article 44 of Federal Decree-Law No. 33 of 2021 is without notice. Failure to honour notice converts to a payment in lieu.
Can a UAE employee work for another company?
Yes, in defined ways. Under the 2022 reform, an employee may take on secondary employment subject to a part-time work permit from MOHRE (or the free-zone equivalent) and — depending on the primary contract — written employer consent. The reform also formalised freelance and flexi permits. After a contract ends, the 6-month grace period lets the employee transfer sponsorship without leaving the country. See /business-guide/founder-visa for self-sponsorship routes and /uae/free-zones-uae for the zone landscape.