PEO in Dubai – A Door to the Next Top Market | INS Global
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PEO in Dubai

Hire Globally, Pay Locally, Expand Effortlessly

INS Global is your local partner for global HR services. Through our PEO, you can set up your business, hire talented employees, and find success in 80+ countries, all while cutting through the red tape and extra costs that usually come with global expansion.  

A PEO (Professional Employer Organization)–sometimes called an EOR (Employer of Record)–is a local partner for companies that want to outsource their human resources services or expand into a new region or country without establishing a separate legal identity.  

A PEO can legally employ your staff and manage employee services such as recruitment, payroll, and benefits, saving you time and money and helping you avoid complex local procedures.  

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Want to have a Team in Dubai TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in Dubai - Summary

Five Advantages of Using a Professional Employer Organization

Assured Legal Compliance

With a thorough knowledge of local legal and administrative procedures, a PEO ensures that you comply with every aspect of local law in a safe and straightforward way 

Reduced Cost And Time

Even a minor issue with HR can lead to surprisingly high fees and fines when you are entering a new market. A PEO has local experts on hand who will assist you in avoiding all costly errors 

Focus On Company Growth

By providing payroll outsourcing, recruitment, headhunting, and contractor management services, a PEO takes care of all the tasks required for your entry into a new market. This allows you more time and energy to fully focus on successful growth 

Rapid Market Entry

Estimated time for Company Incorporation in a new market: 4-12 months  

Estimated time to establish a PEO relationship: 5 days  

*Global estimate  

One Platform for All Your Needs

A Professional Employer Organization covers every aspect of HR services, and streamlines them into a single point of contact.   

Why Choose A PEO Over Company Incorporation?

Incorporating a company in a foreign market is a convoluted and exhausting process, requiring a legal and physical presence in the country. By working with a PEO, your company can operate in the new market without struggling through the multiple steps necessary to form and incorporate your entity 

A PEO:

 

  • Expedites the process 
  • Reduces costs 
  • Avoids potential bureaucratic or legal pitfalls 
  • Utilizes local networks and expertise
Hiring an Overseas Employee

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

PEO in Dubai: How Does It Work?

INS Global’s PEO will take care of your employee recruitment and HR needs in Dubai via 4 simple steps 

  1. We discuss your requirements and formulate a plan that best serves you.
  2. Our organization provides a legal entity to bring in employees to begin operations in Dubai 
  3. We handle the administrative and legal aspects of hiring and paying your employees.
  4. Your employees continue day-to-day operations and move towards success in the Dubai market. At the same time, we cover all necessary HR functions. 

The Differences Between PEO and EOR

When you’ve decided to expand into a new market and want to begin a PEO/EOR agreement, it is vital first to understand the difference between the two in order to choose which one will best suit your needs 

  • A PEO is a company that provides HR services to employees of a client company. These services may include payroll, tax, and legal regulation compliance, among others
  • An EOR (Employer of Record) is a company that acts as a PEO but also legally and officially hires employees on behalf of other companies. In addition to the services provided by a PEO, a global Employer of Record is also responsible for all the legal liabilities of recruiting and employing employees 
  • In a PEO agreement, the contract remains between the original company and the employee
  • In an EOR agreement, the contract is directed by the original company but made solely between the EOR and the employee

INS Global offers both PEO and EOR services in Dubai according to your needs. Talk to one of our global expansion specialists today to learn more about the differences between these services and which may be best for your company. 

Labor Law in Dubai

Employment Contracts in Dubai

Contracts in Dubai must be written in Arabic and detail every aspect of the employee’s responsibilities, compensation, benefits, and regulations for job termination.  

   

The contract can be for a pre-determined time or an indeterminate period. A contract with a fixed term cannot be for more than four years but can be renewed for the same or shorter time if both parties agree.  

Probation periods in Dubai cannot last longer than six months. During this time, the employer can end the contract with the employee at their discretion and not be required to give notice or pay severance.  

Working Hours and Overtime in Dubai

The maximum working hours are 8 hours per working day, forty-eight hours a week. During Ramadan, work hours must be less by two hours each day. 

Work hours exceeding this maximum are classified as overtime and must be paid an additional 25%, or 50% for overtime at night. Overtime hours cannot exceed more than 2 hours in a single working day, unless under special circumstances 

 Dubai Labor Law mandates that Friday must be considered a rest day. The typical workweek in Dubai runs from Sunday to Thursday, leaving Friday and Saturday as the weekend. Workers that are expected to work on Friday must be compensated with either an additional day off or an increase of at least 50% on that day’s wage.   

Holidays and Annual Leave in Dubai

There are 10 days of paid public holidays in Dubai. These are as follows: Jan. 1, Birthday of Prophet Mohammed, Al Isra and Al Mi’raj, Eid al–Fitr , Eid al-Adha, New Year’s Day (Islamic calendar), and UAE National Day.  

 If an employee must work during any of the above holidays, they must receive both compensatory day(s) off and a 50% increase from their regular wage. If compensatory days off are not guaranteed, the wage increase goes to 150%. 

The number of annual paid vacation days given to workers in Dubai relates to the length of time that they have worked for a company:

  • Less than 6 months- 0 days 
  • 6-12 months – 2 days each month
  • 1 year and over – 30 days 

Note that in the case of those working for over six months but not yet a year, unused leave days cannot be carried over to the next month; however, the days can be exchanged for compensation if they are not used each month 

Sick leave in Dubai

Employees in Dubai are entitled to 90 days of sick leave, provided they have worked with the company for a minimum of three months post-probationary period. There is no sick leave for those in the probationary period.  

Only half of the total number of sick leave days taken will be paid. Of those 45 paid sick leave days, the employee will receive full wages for the first 15 days and 50% of their wages for the remaining 30 days. 

Illness or injury received as a result of work will result in full employee compensation for the first six months and 50% of their salary for another six months if the employee’s medical treatment continues. 

All Muslim employees are eligible for a 30 day unpaid leave once during their employment for the Hajj pilgrimage to Mecca.

Maternity/Paternity Leave in Dubai

If a female employee has been with the company for a minimum of one year she is entitled to 45 days of fully paid maternity leave. If she has been with the company for less time she will receive 50% of her wages during those 45 days. She may also take an additional ten days of unpaid leave. 

Fathers may take five days of paternity leave within half a year of the child’s birth. 

 

Tax Law and Social Contributions in Dubai

There are no income taxes for income generated in Dubai. Tax revenue is otherwise gained through corporate taxes, entertainment taxes, and import duties. 

 From 2023, corporate tax in Dubai will be 9% above a minimum amount. 

 According to Dubai labor laws, health insurance must be fully covered by the employer. In case of employee death the employee’s family are eligible for an amount equivalent to 24 months of the employee’s wages. An employee may receive the same amount if they are rendered disabled from injury on the job.   

 In Dubai, there is no minimum wage for local or expatriate employees.  

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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