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UAE: Hiring employees for a mainland company? Guidelines for work permit, contract, sponsorship

The pre-approval work permit issued by Mohre is valid for a period of 60 days

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by

Laraib Anwer

Published: Wed 9 Oct 2024, 3:46 PM

The UAE is a land of opportunities for those looking to work as well as those who want to bring their business ideas to life by setting up a flourishing company.

In the UAE, businesses can either be set up as a mainland or freezone company. Mainland companies are offshore entities that are registered under different authorities across the seven emirates.

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These companies usually require a local sponsor or partner. They are allowed to operate across a range of sectors without most trading restrictions.

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When starting a business in the UAE, after settling all the legal formalities and getting a licence, owners have to start employing workers.

From work permit to sponsoring employees, here is all you need to know about the employing process in the UAE.

How many employees can be hired?

When it comes to how many employees a company can hire, the quota is approved by the ministry. This may be changed on request from the employer and the approval of the ministry. This quota is decided after assessing the following aspects:

  • Legal form of company
  • Area of premises
  • Projects
  • Demand of work operation as evidenced by the employer.

Getting a work permit

There are 12 types of work permits offered in the UAE. These permits along with six types of job models were introduced in 2022.

At the federal level, the Ministry of Human Resources and Emiratisation is in charge of issuing work permits. When issuing the crucial permit, the authority considers the following criteria:

  • The worker must have professional competence or academic qualifications required in the UAE.
  • The worker should have lawfully entered the country and satisfied the conditions of residency in the country.
  • The Department of Labour may not consent to the employment of non-nationals unless it examines its records and ensures that there are no nationals registered in the employment section, capable of performing the required job.

Apart from Mohre, the General Directorate of Residency and Foreigners Affairs (GDRFA) also overlooks this process in each emirate.

Standard employment contract

Employers in the UAE have to abide by a standard employment contract which is set by Mohre.

For an employment contract to be issued, the employer has to keep in mind the following points:

  • No initial approval for employment is granted until after an employment offer is issued by the employer.
  • The offer must be duly signed by both the employer and employee and should conform with the standard employment contract.
  • The offer letter should be registered with the ministry only after which the employer can apply for an employment visa for the employee.

When it comes to clauses in the contract, no new additions can be made unless they comply with the following:

  • The clause must be compliant with the ministry's legal requirements.
  • The clause must not conflict with other clauses of the standard employment contract.
  • The employer must gain the ministry's approval.

Language of the contract

There are 11 languages that have been approved for the labour contract. In 2016, Mohre approved a third language to be added to the job offer, labour contract and annexure.

In addition to Arabic and English, employees can choose from nine languages. These are: Bengali, Chinese, Dari, Hindi, Malayalam, Nepalese, Sinhalese, Tamil and Urdu.

A hefty fine of Dh20,000 will be levied against the employers if its found that workers did not go through the annexes before signing the labour contract.

Sponsoring employees

Sponsoring employees involves two phases. The first one is applying for the work permit or labour cards with Mohre, followed by applying for the employee work permit through the General Directorate of Residency and Foreigners Affairs.

Applying for work permits/ labour cards

Applying for the permit has to be done through the Ministry of Human Resources and Emiratisation. Here is how employers can apply:

  • Request the issuance of eSignature card for the firm. This signature is a prerequisite for any application submitted by the employer.
  • The ministry will issue the card only after inspecting the business premises and verifying lack of violations.
  • After the card has been issued, the employer can apply for a pre-approval work permit for its employees.

Documents required for pre-approval of work permit for employees:

  • Copy of business licence
  • eSignature card of firm
  • A coloured photo of the worker with a white background
  • Copy of worker's passport (valid for minimum of six months)
  • Academic qualification if required (post-secondary diploma, university degree or equivalent). This must be attested by the UAE's Ministry of Foreign Affairs and International Cooperation.
  • For professionals like physicians, pharmacists, nurses and teachers, a letter of approval must be issued by the entity concerned.

Eligibility

Apart from a signed employment offer, there are other conditions which must be met by the employer:

  • A bank guarantee of Dh3,000 is required by the ministry for each sponsored employee.
  • The worker must not have an existing valid work permit/labour card from another company.
  • The employee must not be below 18 years of age.
  • The licence must be valid and must not have any violations.
  • The profession assigned to the employee must fit with the firm's activity.

Important things to keep in mind

While applying for the work permit with the federal authority, employers must keep the following in mind:

  • The approval fees and bank guarantee must be paid by the employer within the validity period of the work permit. If not paid within 60 days, then the permit will be automatically cancelled. The employer will have to reapply for the work permit.
  • Work permit shall be valid for a period of 60 days.
  • The guarantee amount is borne by the employer and can be recovered upon the termination of the employee and cancellation of his/her's labour card.
  • During the validity period, employees must complete medical fitness check, apply for Emirates ID and obtain labour card number from Mohre.
  • After fulfilling all required papers, a resident permit will be stamped on the employee's passport, which carries the sponsorship of the business entity.

After getting the pre-approval from Mohre, employers can apply for the work permit from the General Directorate of Residency and Foreigners Affairs.

Employers can go to the respective emirate's GDRFA, and request for a firm card.

Once this card is issued, the employer/company will have a file opened with the immigration authorities which will entitle it to apply and obtain work permits for new employees in future.

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Laraib Anwer

Published: Wed 9 Oct 2024, 3:46 PM

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