20 Best Employer of Record in the United Arab Emirates in 2024
10 Best UAE Employer of Record Service Shortlist
Here’s my pick of the 10 best the UAE EOR companies out of the 20 options I’ve reviewed:
Get free help from our HR software advisors to find your match.
Are you interested in hiring employees based in the United Arab Emirates (UAE), but intimidated by all the legal requirements? Instead of registering a new legal entity with the Department of Economic Development (DED) and the Ministry of Human Resources and Emiratisation (MOHRE), I recommend using an Employer of Record (EOR) service in the UAE to manage all the employment regulations on your behalf.
A UAE-focused EOR service can help you legally hire, manage, and pay employees based in the United Arab Emirates with ease. This way, you can access Emirati talent without having to open a legal entity abroad. Your EOR employees will have local support, and your operations will stay in compliance with the MOHRE at all times. Sounds perfect, right? However, which UAE EOR service is the best fit for your needs?
To help you narrow down your options, I’ve compiled my research into this list of the best Employer of Record services for hiring in the UAE. Keep reading to learn more about how an EOR service can support your business expansion into the UAE.
Market Details for Hiring in the UAE
- Capital City: Abu Dhabi
- Currency: UAE Dirham (AED)
- Payroll Frequency: Monthly
- Official Language: Arabic
- Approx. Population: 10.2 Million
- Public Holidays: 14 days
Why Hire Employees in the UAE?
The UAE is home to a diverse and multicultural workforce with expertise in specific industries such as oil and gas, finance, tourism, and technology, making it an attractive destination for companies seeking specialized skills.
The UAE's strategic location between Europe, Asia, and Africa makes it an ideal hub for businesses looking to expand their global operations. Furthermore, the high quality of life in the UAE — which offers excellent healthcare, education, and recreational facilities — helps attract and retain top talent from around the world.
What is an Employer of Record in the UAE?
An Employer of Record (EOR) in the UAE refers to a third-party service that legally employs workers in the UAE on behalf of your company. While your organization retains control over these employees’ daily tasks and workloads, the EOR takes on the full legal responsibility for employment. As the legal employer, the EOR assumes full legal responsibility for any new hires. This includes managing payroll, deducting taxes, ensuring compliance with local employment regulations, administering benefits, and handling any other employee-related requirements specific to the UAE.
Partnering with an EOR service is beneficial for companies wanting to hire skilled foreign workers or expand their operations into the UAE since it simplifies this process considerably. Instead of requiring your HR team to master the UAE’s employment laws and regulations, you can delegate these responsibilities to a local EOR in the UAE and gain peace of mind that your global operations will be compliant.
Why Trust Our Reviews
We've been testing and reviewing HR software + services since 2019. As HR professionals ourselves, we know how critical and difficult it is to make the right decision when selecting a new HR service provider to work with.
We invest in deep research to help our audience make better purchasing decisions. We've tested more than 2,000 tools and 200 service providers for different HR use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent, and take a look at our review methodology.
Best Employer of Record in the UAE: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top Employer of Record selections for hiring staff in the UAE to help you find the best EOR service for your budget and business needs.
| Tools | Price | |
|---|---|---|
| Deel | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| RemoFirst | From $25/user/month | Website |
| Omnipresent | From $100/employee/month | Website |
| Skuad | From $199/employee/month or $19/contractor/month | Website |
| Oyster HR | From $25/employee/month | Website |
| Atlas HXM | From $595/employee/month or $49/contractor/month | Website |
| Rivermate | From $399 EUR/employee/month | Website |
| Horizons | Pricing upon request | Website |
| Velocity Global | Pricing upon request | Website |
| Globalization Partners | Pricing upon request | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose an Employer of Record in the UAE
An EOR service can solve many different challenges and simplify the process of hiring and managing staff in the UAE. To help you figure out which EOR service best fits your business needs, you need to document your specific challenges first.
As you work through your own unique selection process, keep the following points in mind:
- What problem are you trying to solve - Start by identifying the challenges you're trying to overcome, whether that's sourcing staff in the UAE who have specific skills, managing compliance with the UAE’s employment laws and tax regulations, paying employees in United Arab Emirates Dirham (AED), or offering health benefits to your employees in the UAE.
- Who will benefit from the service - Consider who will manage the EOR relationship (i.e., who will your main contact people be in-house?) and how having an employer of record will improve their day-to-day work tasks.
- What is your budget - To evaluate cost, estimate how many employees you anticipate hiring in the UAE. Since EOR providers typically charge a monthly fee for each new hire, this will help you anticipate your monthly costs.
- What outcomes are important - Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to hire employees located within a specific emirate in the UAE to help your business tap into a new customer base. You could compare service providers until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you could waste a lot of valuable time.
- How it would work within your organization - Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Would their software framework integrate with your existing HR software, or would you face data management roadblocks?
Remember every business is different — don’t assume that a the UAE employer of record service will work for your organization just because it's popular.
-
Deel
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
Reviews of the Best Employer of Record Services in the UAE
To help you find the best EOR service for hiring employees in the UAE, I’ve described my top 10 selections in detail, including the specific services each provider offers and how HR teams can use them effectively. Additionally, I’ve listed 10 more EOR service providers for the UAE below if you’d like more options to consider.
Deel is a well-established employer of record platform that helps companies rapidly employ workers in 150+ countries, including the UAE.
Deel owns a local entity in the UAE staffed with legal experts to keep track of regulatory changes and ensure all legal obligations are met on your behalf. To hire an employee in the UAE with Deel, the average onboarding time frame is 20 days.
Why I picked Deel: Deel excels as an EOR service provider in the UAE by offering streamlined contract management, ensuring compliance with Emirati employment laws. Deel also helps organizations offer localized employee benefits for Emirati staff, including public and private health insurance, and contributions into funds for unemployment insurance, social security, workman’s compensation insurance, and a pension.
In addition, Deel has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations. These services, all combined, facilitate efficient and compliant hiring processes within the Emirati talent market.
Deel Key Services:
Deel offers end-to-end management for your employees based in the UAE, covering everything from hiring and onboarding to termination. Their web app is user-friendly and provides a range of features to help businesses manage their remote teams effectively, including contract management and expense tracking.
Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options. You can also use Deel for visa and immigration support if you want to relocate existing employees to the UAE, with Deel managing the entire visa process for your organization in-house.
Deel offers 24/7 customer support and live chat and is known for its fast support.
Pros and cons
Pros:
- Comprehensive employee benefits
- Local compliance expertise
- Fast onboarding process
Cons:
- Onboarding process for UAE employees is time-consuming
- Limited customization options
Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can build global teams with ease. They offer EOR services in 180+ countries, including the UAE, eliminating the need to set up multiple legal entities abroad.
Why I picked Remofirst: If you're looking to expand your remote team in the UAE, Remofirst offers a budget-friendly option for businesses that need to hire in the region. The platform is designed to help companies navigate the complex labor laws in the UAE, such as the country’s specific requirements for health insurance, end-of-service benefits, and visa sponsorships. Remofirst ensures that all employment regulations are followed, allowing you to hire talent in the UAE without worrying about compliance.
Another reason why Remofirst is a good EOR in the UAE is its flexibility for remote hiring. You can bring on team members in the UAE as full-time employees or contractors, giving you options to fit your hiring needs and budget. Remofirst also handles local taxes, ensuring compliance with both UAE laws and any international tax obligations your team might have. They'll even automatically calculate your team’s hours, time off, holidays, bonuses, and commissions so you don’t have to worry about it.
Remofirst Key Services:
Their team of legal experts and HR professionals will ensure your business operations are always compliant with changing Emirati regulations, with compliance documentation accessible at all times through your secure dashboard. Their customer support team is also available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact.
On top of their EOR services, Remofirst also provides international payroll and invoice management, global benefits management (including insurance and equity plans, plus time-off management), and employee support with obtaining visas and other immigration documentation. They can even help you allocate equipment to your global employees. The EOR plan starts from $199/person/month
Pros and cons
Pros:
- Robust employee support
- User-friendly platform
- Comprehensive compliance management
Cons:
- Service availability may vary by region
- Dependence on third-party providers for some services
Omnipresent is a global employment platform that assists companies in hiring, onboarding, payroll, and managing employees and contractors across international locations. By ensuring compliance with local employment laws and handling payroll and benefits administration, Omnipresent simplifies the complexities of international hiring. It is especially beneficial for companies seeking to expand their global workforce, offering onboarding, automated payroll management, tailored benefits, real-time data insights, and customer support.
Why I picked Omnipresent: A significant advantage of selecting Omnipresent as an EOR in the UAE is its expertise in converting contractors to full-time employees, vital for building a stable workforce in new markets. Additionally, Omnipresent supports businesses during mergers and acquisitions, successfully handling employee-related risks and compliance, while also streamlining HR processes for IPO readiness. By emphasizing local expertise in legal, payroll, and benefits, Omnipresent ensures compliance across diverse jurisdictions, easing the administrative burden on businesses operating internationally.
Omnipresent Key Features:
Omnipresent's Global Payroll Services ensures timely and accurate payments in over 150 countries, making it a vital feature for businesses managing a diverse international workforce. The Global Benefits Management feature is also significant, as it helps companies design competitive benefits packages that comply with local regulations, crucial for retaining top talent. Additionally, the Global Hiring Navigator offers a comprehensive tool to guide businesses through the complexities of international hiring, ensuring they make informed decisions when expanding globally.
Pros and cons
Pros:
- Remote team collaboration
- Streamlined payroll and benefits management
- Global talent acquisition in 160+ countries
Cons:
- Heavy reliance on integrations
- Limited control over local employment practices
Skuad is a global HR platform that facilitates international hiring, payroll, and HR management for remote teams. It allows businesses to hire and pay employees and contractors in over 160 countries, including the UAE, without needing to establish local entities. When you hire them as your Emirati EOR partner, they’ll manage the whole hiring process on your behalf, including creating employment agreements and other legal documents.
Why I picked Skuad: As part of their EOR service, Skuad offers remote onboarding and can facilitate payroll in multiple currencies. This includes the management of invoices as well as payroll automation. Skuad also offers robust compliance frameworks for local UAE employment laws, including visa and immigration processes, statutory benefits, and tax obligations.
Skuad Key Services:
Skuad's EOR services include remote employee onboarding, employee benefits, time-off tracking, and managing tax compliance. As part of their global hiring service, they’ll handle all the required documentation on your behalf, including work permits and visas for your new hires and their dependents.
Beyond that, Skuad can also help you distribute computer equipment to your new employees, and track company assets like phones and other IT devices.
Pros and cons
Pros:
- Strong HR support
- Local compliance management
- User-friendly platform
Cons:
- Deductions limited to Enterprise plan
- Lack of platform customization
Oyster HR is a global EOR service provider that helps businesses hire employees in the UAE and other countries with full compliance. Their platform is designed to support seamless global expansion with a focus on compliance and employee experience.
Why I picked Oyster HR: Oyster offers educational resources to their EOR clients to help them navigate the global employment landscape. This includes useful financial tools that help you determine the full cost of hiring a new employee in any country, or whether it would be more cost-effective to fill a position with an international contractor rather than an employee.
In addition, the Oyster Academy is a helpful resource for companies that are new to the international work-from-anywhere scene, and includes training courses on ‘how to prepare for distributed work,’ and ‘how to create a company culture in a distributed environment.’
Oyster HR Key Services:
Oyster HR offers a range of features, including streamlined onboarding, payroll, and benefits management, tailored specifically for the Emirati market. Their platform stands out for its ease of use, compliance assurance, and dedicated support, making it an ideal choice for businesses looking to expand into the UAE.
Their onboarding process is designed to be quick and efficient, helping new hires integrate into their roles smoothly. This feature includes digital contract management and automated document collection, making the entire process hassle-free for both employers and employees.
Pros and cons
Pros:
- Efficient onboarding process
- Strong compliance support
- Comprehensive global benefits packages
Cons:
- Onboarding time for new hires varies
- Limited customization options
Atlas HXM offers innovative companies the tools they need to compete in a global economy. As one of the largest, direct EOR service providers, Atlas HXM believes businesses should be able to employ whomever they want, wherever the talent exists.
Why I picked Atlas HXM: They're a popular choice across numerous industries, including non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government, and they can tailor their service offerings to your needs, whether you're a new startup, an SME, or an enterprise organization.
Atlas is committed to widening the margins of entrepreneurship and employment alike. As such, their business model helps startups and SMBs compete on the international playing field—turning commercial innovations into viable global enterprises. In doing so, Atlas brings opportunities to local economies and the people who work there.
Atlas HXM Key Services:
Services include Emirati-specific compliance monitoring, employee engagement and productivity monitoring, and guidance on safety programs to minimize business risks.
Their technology platform is supported by international experts who deliver flexible services to companies wanting to expand across borders, including into the Middle East. Their services can help you onboard talent, manage compliance, and pay your global workforce without requiring a local entity or multiple third-party providers.
Pros and cons
Pros:
- User-friendly platform with localized support
- Comprehensive and customized onboarding
- Extensive local compliance expertise
Cons:
- Initial setup may require significant time and resources
- Limited customization options for specific HR policies
Rivermate provides EOR services in the United Arab Emirates, offering extensive support for companies looking to hire and manage remote employees in the region.
Why I picked Rivermate: Rivermate’s flexible EOR platform simplifies the complexities of hiring and managing employees, ensuring full adherence to UAE labor laws and regulations. In addition, their comprehensive support, from onboarding to payroll, makes them a top choice for businesses aiming to establish a presence in the UAE without setting up a legal entity.
Rivermate is headquartered in the Netherlands and services a lot of European clients. As a result, their EOR services are priced in Euros.
Rivermate Key Services:
Their services include compliance management, payroll processing, and HR support, ensuring seamless integration into the UAE market. Additionally, Rivermate emphasizes a localized approach, tailoring their services to meet the unique regulatory and cultural nuances of the UAE.
Pros and cons
Pros:
- Localized support and market knowledge
- Comprehensive benefits administration
- Strong compliance and regulatory expertise
Cons:
- Reliance on localized expertise might limit scalability
- Limited customization for global operations
Horizons offers streamlined global HR solutions including EOR and PEO services, international payroll and recruitment, and global mobility & immigration support.
Why I picked Horizons: I included Horizons in this list because their EOR service is cost-effective compared to others, and they offer flexible contract terms. You can end your EOR relationship with them at any time without worrying about costly termination fees or other penalties.
Their the UAE-based EOR services are administered by their local experts who are well-versed in the UAE’s employment laws, including statutory benefits such as vacation leave, maternity leave and paternity leave. Their onboarding process for new employees in the UAE is also very quick, with a minimum onboarding time of just 24 hours.
Horizons Key Services:
In addition to their standard EOR services, they offer additional niche service offerings such as tips for doing business in the UAE or Dubai specifically, guides to help with global expansion, resources for strategic mergers & acquisitions, and advice on accessing new and emerging markets.
Horizons also provides cultural training and support to help employees integrate seamlessly into their new work environment. This service enhances employee satisfaction and retention by addressing cultural nuances and fostering a positive workplace culture.
Pros and cons
Pros:
- Cultural integration support
- Strong focus on compliance
- Deep knowledge of UAE labor laws
Cons:
- Service offerings may vary by region
- Dependence on local partners for some services
Velocity Global is a well-known employer of record (EOR) and professional employer organization (PEO) provider that simplifies global hiring thanks to its network of on-the-ground experts in 185+ countries, including the UAE.
Why I picked Velocity Global: I included Velocity Global in this list because of their well-known reputation for global EOR services and their expertise in navigating complex regulatory environments. They stand out with their ability to handle intricate regulatory landscapes, ensuring companies can expand efficiently without legal hurdles.
Velocity Global Key Services:
Velocity Global offers comprehensive support for their EOR clients, including everything from onboarding to ongoing HR management, backed by a deep understanding of local employment laws. Key services include payroll, compliance, benefits management, employee training, and risk management for your Emirati employee operations.
In addition to its EOR services, Velocity Global can also help you simplify your plans for global expansion or offer additional global immigration services in case you want to move international employees to another location.
Pros and cons
Pros:
- Strong understanding of the Emirati regulatory environment
- Localized payroll management
- Efficient and thorough onboarding process
Cons:
- Pricing details are not transparent
- Limited customization options
Globalization Partners (or G-P) is a leading EOR service provider that assists companies looking to hire and manage employees in the UAE. Their global HR platform streamlines international hiring, compliance, payroll, and benefits administration, ensuring a smooth onboarding process for Emirati employees.
Why I picked Globalization Partners: G-P’s sophisticated global EOR platform is designed to handle complex regulatory environments, making it easy for businesses to hire and manage employees in numerous countries, including the UAE.
New hires can be onboarded in days, with locally-compliant contracts according to Emirati laws. Using G-P, you can also pay your EOR employees in over 180+ currencies (including cryptocurrencies) using Venmo or bank transfers.
Globalization Partners Key Services:
G-P offers automated onboarding processes, real-time expense reporting, and a dedicated support team, all of which contribute to its reputation as one of the best EOR services in the UAE.
Their team includes local HR experts who understand the intricacies of Emirati labor laws and cultural nuances and can also assist with global expansion plans and executing global transactions as needed.
Pros and cons
Pros:
- Easy and quick international hiring and onboarding process
- Strong compliance and risk management
- Comprehensive global employment platform
Cons:
- Dependence on the platform for all HR functions
- Limited customization options
Other Employer of Record Services in the UAE
Here are some other EOR service providers in the UAE that didn’t make it into my top 10 shortlist, but are still worth considering:
- Remote
For competitive benefits packages
- Multiplier
EOR service for quick employee onboarding
- Papaya Global
For an AI-based payroll engine
- Gloroots
EOR service for small businesses or startups
- Mercans
For flexible payment systems, including cryptocurrency
- Mauve Group
EOR for cultural awareness training
- GoGlobal
For employee support in the local language
- Bradford Jacobs
EOR with resources for future entity formation
- Safeguard Global
EOR service for NGOs and non-profit organizations
- FMC Group
For Middle Eastern client companies
Hiring in the UAE: Important Details
Here are some key details to note if this is your first time hiring staff located in the UAE. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing staff based in the UAE.
In the UAE:
- The United Arab Emirates was established in 1971 and consists of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, Ras Al Khaimah, and Fujairah.
- Employment laws in the UAE are set by the Ministry of Human Resources and Emiratisation (MOHRE).
- You can hire employees (full-time, part-time, temporary, or seasonal) or independent contractors. Your Emirati EOR provider can help you determine the best hiring option depending on your needs while helping you prevent employee misclassification problems.
- The UAE has both mandatory payroll deductions and social security contributions that must be collected, including gratuity payments (End of Service Benefits - EOSB), pension contributions for UAE and GCC nationals, and health insurance premiums.
- Arabic is the official language in the UAE. However, due to the country’s diverse expatriate population, most international business is conducted in English. Other languages spoken in UAE include Hindi, Urdu, Bengali, Tamil, Tagalog, and Persian, among others.
- The standard working week in the UAE is 48 hours per week over a 6-day work week. The maximum number of consecutive working days per week is 6 days.
- Overtime is allowed under the UAE Labour Law and is calculated at 125% of the normal rate for daytime overtime and 150% for overtime worked between 9 PM and 4 AM.
- Paid vacation in the UAE starts at 30 days of annual leave per year, for employees who have completed one year of service.
- There are 11 national public holidays in the UAE that employees are paid for. Understanding and complying with employment norms and legal requirements surrounding Emirati public holidays is one area where your EOR service will shine, managing these occurrences hassle-free on your behalf.
- National public holidays in the UAE include:
- New Year's Day (January 1)
- Ed Al Fitr (2 days, varies between late April to early May)
- Arafat Day (date varies between late June to early July)
- Eid Al Adha (3 days, varies between late June to early July)
- Hijri New Year (Islamic New Year)
- Mawlid Al-Nabi (Prophet Muhammad’s Birthday)
- Commemoration Day (December 1)
- National Day (December 2)
- The UAE offers maternity leave and paternity leave.
- The maternity leave entitlement is 60 days, with 45 days fully paid and the remaining 15 days at half pay.
- The paternity leave entitlement for fathers is 5 days, to be taken within six months of the child's birth.
- Paid sick leave in the UAE is 90 days per year, with the first 15 days fully paid, the next 30 days at half pay, and the remaining 45 days unpaid.
- A probationary period is 6-months in the UAE. During this period, an employer can terminate an employee with a notice period of 14 days.
- The termination terms in the UAE are mandated by the UAE Labour Law. The required notice period is typically 30 days, but it can vary based on the length of service and the terms of the employment contract. This is another area where a local Emirati EOR can provide assistance to ensure the probation period and related severance are handled correctly.
- Severance pay is calculated based on the length of service. Employees receive 21 days of basic pay for each of the first five years of service and 30 days for each additional year.
Selection Criteria for Employer of Record in the UAE
Uncovering the best EOR services for this list required a deep understanding of how these services can alleviate common challenges, such as legally hiring employees abroad, managing international payments, ensuring compliance with local labor laws, providing competitive benefits, and facilitating smooth onboarding.
My approach to choosing the best EOR services is grounded in thorough research into recently published employer of record market data and an understanding of which partnerships would add the most value for organizations hoping to access the global talent market.
Here are the specific criteria I used to carefully compare the service offerings for each provider in this list:
Core Employer of Record Services (25% of total score): To be considered for inclusion in this list, each EOR provider had to offer the following basic services first:
- The corporate structure to legally and compliantly hire employees in multiple countries without a local entity
- The ability to manage global workforce payroll and taxes in compliance with local regulations
- Assistance with offering competitive and locally compliant benefits packages
- Assistance with navigating visa and work permit processes for expatriate employees
- Robust procedures to ensure data privacy and security that comply with international standards, including GDPR and other requirements
Additional Standout Services (25% of total score): To help me narrow in on the best EOR services out of the numerous options available, I also took note of any unique or less common services, including:
- Advanced technology platforms that streamlined payroll and HR processes while still offering ease of use
- Specialized experience in hiring employees within specific new countries or key industries
- Services that enhance remote work compliance and global mobility needs
- Specialized customer support for complex immigration cases
- Assistance with international IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
- A focus on eco-friendly and sustainable employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- How many years their business has operated in the EOR space
- Any industry recognitions or certifications the provider may hold in international HR and payroll
- Their depth of knowledge in local labor laws across multiple jurisdictions
- Their expertise in new markets, including how many different countries they offer local expertise in
- Evidence of a strong track record managing global expansion processes
- The combined experience and credentials of their team members, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the EOR provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:
- The availability of a multilingual support team that covers different time zones
- Multiple support channels, including phone, email, and live chat
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
- The existence of dedicated account managers to provide assistance as needed
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:
- Consistently high ratings across various consumer review platforms
- Specific feedback on the ease of use of the EOR services
- Testimonials highlighting exceptional customer support and problem resolution
Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
Trends in Employer of Record Services
As more businesses expand across borders, the need for efficient, compliant, and user-friendly solutions for hiring employees abroad, and managing international payments, compliance, benefits, and onboarding has never been more critical. As a result, Employer of Record services have continued to evolve, with an emphasis on technology-driven solutions that offer flexibility, comprehensive support, and innovative features to facilitate global operations.
Here are the most recent trends affecting EOR services and the HR software systems that are used to offer them:
- Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
- Specialized Services for Diverse Needs: Several EOR providers have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
- Enhanced Employee Benefits Packages: There's a growing trend in EOR providers going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of attracting and retaining top talent globally.
- AI-Backed Knowledge Bases: Some EOR providers (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country fast, without relying on human-run support systems.
As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion. For a closer look at specific EOR providers that are capitalizing on these trends, I recommend reading our in-depth reviews of Oyster HR, Skuad, and Deel.
Key Employer of Record Services
An Employer of Record (EOR) simplifies hiring and compliance in the UAE by managing payroll, tax obligations, and labor laws. Key services include:
- Payroll in AED: Ensures accurate salary payments in compliance with UAE labor laws, including the UAE Labor Law (Federal Law No. 33 of 2021) and Wage Protection System (WPS), covering wage rates, overtime, and record-keeping to avoid penalties from the Ministry of Human Resources and Emiratisation (MOHRE).
- Tax Compliance and Social Contributions: While the UAE has no personal income tax, the EOR ensures compliance with other financial obligations such as VAT, if applicable, and contributions to pension schemes for Emirati employees, adhering to UAE regulations.
- Labor Law Compliance: Provides expertise on UAE labor regulations, including working hours, overtime, paid leave, and termination procedures as per the UAE Labor Law and MOHRE guidelines, ensuring compliance with regional, national, and international workforce regulations and conventions.
- Talent Acquisition and Background Checks: Conducts industry-specific credential verification and background checks to ensure new hires meet UAE legal standards for employment and professional certifications.
- Visa and Work Permits: Assists with securing work visas and residency permits for foreign employees, ensuring compliance with the General Directorate of Residency and Foreigners Affairs (GDRFA) and MOHRE guidelines.
- Onboarding and Offboarding: Manages compliant onboarding and terminations in line with UAE labor laws, including end-of-service benefits (gratuity), notice periods, and legal termination processes to mitigate the risk of disputes.
- Benefits Administration: Provides competitive benefits packages, including health insurance, end-of-service gratuity, housing allowances, and transportation subsidies, tailored to the UAE labor market.
- HR Support: Offers ongoing consultation on UAE employment laws, workplace safety regulations, and compliance with mandatory employee documentation, including labor contracts and payroll records.
- Risk Management and Insurance: Oversees workers' compensation and ensures compliance with local insurance requirements, including health insurance, to mitigate legal and financial risks.
- Multi-Language Support: Facilitates communication with the UAE’s diverse workforce through translation and localization of employment contracts, legal documents, and HR materials.
Benefits of an Employer of Record Service
EOR services are a savvy option for organizations looking to expand their global footprint without the complexities and liabilities associated with international employment laws and practices. For companies contemplating global expansion, understanding the benefits of partnering with an EOR can provide the clarity and confidence you need to move forward.
Here are several benefits you’ll gain by using an EOR service:
- Quick Market Entry: For organizations aiming to test new markets or hire talent in new countries where they have no legal presence, an EOR offers a swift and efficient solution to initiate operations, saving time and resources.
- Simplified Global Payroll: Using an EOR service simplifies the complex process of managing international payroll, including tax deductions, withholdings, and currency conversions for your employees worldwide.
- Global Compliance & Risk Mitigation: By managing compliance, an EOR service provides expertise in navigating the intricacies of employment laws, tax regulations, and insurance requirements in multiple jurisdictions, helping businesses safeguard their operations against compliance-related risks.
- Enhanced Benefits Negotiation: By leveraging their extensive networks and purchasing power, EORs can negotiate better international insurance rates and secure competitive benefit packages on your behalf, enhancing your ability to attract and retain top talent worldwide.
- Improved Cost Effectiveness: Using an EOR service is a cost-effective way for businesses to enter new markets, compared to the significant costs of establishing a new foreign entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.
Capitalizing on the benefits of using an EOR service can help with strategic planning and improving operational efficiency. As businesses look towards international markets for growth opportunities, partnering with an EOR provider offers a streamlined, cost-effective, and compliant pathway to global expansion.
Need a bit more firepower to convince your upper management to partner with an EOR service? Focusing on the costs of hiring a foreign employee and how an EOR can simplify the hiring process might just be the winning strategy you need.
Costs & Pricing for Employer of Record Services
Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.
In general, EOR services in the UAE cost between $199 to $1,600 per employee, per month.
Alternatively, some EOR services in the UAE charge a percentage of the employee’s salary, ranging between 10% to 20%.
Key factors that can influence the pricing of an employer of record service include:
- Geographic Location: Costs can vary significantly based on the country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models. If you'd like to delve deeper into the different factors that influence prices, my article explaining the intricacies of common EOR pricing models is a natural next step.
When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.
FAQs about EOR Services in the UAE
If you’ve got specific questions about the requirements to hire Emirati employees or how EOR services work, these answers to frequently asked questions are a good place to start:
What does an Employer of Record do?
An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.
In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.
What are the minimum wage requirements in the UAE?
The United Arab Emirates (UAE) does not have a federal minimum wage that applies to all workers regardless of nationality. However, there are specific minimum wage requirements for UAE nationals, which are outlined as follows:
- For employees without a high school diploma: The minimum wage is AED 3,000 per month.
- For employees with a high school diploma: The minimum wage is AED 4,000 per month.
- For employees with a college degree: The minimum wage is AED 5,000 per month.
These requirements are primarily applicable to UAE nationals working in the private sector. For expatriates, the UAE does not enforce a statutory minimum wage, but wages must be sufficient to cover their basic living expenses and comply with contractual agreements.
What are free zones within the UAE?
Free zones in the UAE are designated areas that offer a unique regulatory and tax environment aimed at attracting foreign businesses and investment. These zones provide numerous benefits and incentives to businesses, making them an attractive option for companies looking to establish a presence in the UAE.
Key benefits and features of UAE free zones include 100% foreign ownership, various tax exemptions (such as no corporate tax and no personal income tax), and exemption from import and export duties.
Additionally, the setup process in free zones is generally faster and more straightforward than on the mainland. Companies can repatriate 100% of their profits and capital, benefit from customs privileges, and operate without currency restrictions.
Free zones also offer state-of-the-art infrastructure, business-friendly regulations, sector-specific facilities, and streamlined visa and work permit processes for employees and their families.
Examples of Free Zones in the UAE:
- Jebel Ali Free Zone (JAFZA): One of the largest and oldest free zones, located in Dubai.
- Dubai Internet City (DIC): Focused on IT and tech companies.
- Dubai Media City (DMC): Catering to media and advertising industries.
- Dubai Healthcare City (DHCC): Specializing in healthcare and medical services.
- Abu Dhabi Global Market (ADGM): An international financial center in Abu Dhabi.
- Sharjah Airport International Free Zone (SAIF Zone): Located in Sharjah, close to the airport.
Free zones play a significant role in the UAE’s economic strategy by encouraging foreign investment, diversifying the economy, and fostering innovation across various sectors.
Do EOR providers offer other types of global HR services?
Yes, many EOR service providers also offer global payroll outsourcing solutions and professional employer organization services (also known as PEO services), as well.
PEO services are one way to outsource human resources functions to support your international teams. PEO companies can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
Global payroll outsourcing solutions ensure compliance with local tax regulations and handle multi-currency payments on your behalf. You can partner with them to simplify the process of paying remote employees and freelancers within a unified payroll run.
allow you to easily pay remote employees or independent contractors within a unified payroll run. They manage in-country compliance requirements and juggle payments in multiple local currencies on your behalf.
To dive even deeper into this topic, read our article covering other global HR service providers to figure out the best fit for you.
What are some of the consequences of non-compliance?
As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.
If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:
- Fines and penalties
- Legal actions such as lawsuits or other litigation proceedings
- Corrective measures and compliance orders
- Revocation of business licenses or operating permits
- Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
- Increased monitoring and additional government scrutiny
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
To brush up on your compliance best practices, have a quick read through our 2024 HR Compliance Guide.
Are there any risks to using an Employer of Record service?
In the world of business, nothing is ever 100% risk-free, and that is true for EOR services as well. While EOR services do offer substantial advantages, here are some of the risks you should also be mindful of as you choose the right partner for you:
Financial risks:
- Hidden costs and service fees: Some EOR providers may charge additional service fees for specific tasks, such as processing documents, onboarding or offboarding employees, or providing additional HR advice.
- Mandatory benefits: Some countries require mandatory benefits for employees. In that case, the EOR will charge you for those benefits in addition to the employee salary and their service percentage, which can add up.
- Currency fluctuations: Exchange fluctuations can impact the cost of payroll and other financial transactions as the strength of a currency you’re using goes up or down.
Operational risks:
- Data security: Since you’re entrusting sensitive employee data to your EOR, you’ll want to consider the strength of their data protection practices and policies, including their incident response plans, IT penetration testing, and data management certifications, such as ISO 27001.
Strategic risks:
- Loss of control: You will need to relinquish some degree of control over the workforce management processes of your EOR employees, which may impact your organization’s strategic decision-making capabilities.
- Brand reputation: Any negative actions, incidents, or practices of your chosen EOR can directly impact your organization’s brand reputation and create a negative employee experience if not handled properly.
For a deeper dive into this topic, read our comprehensive guide to EOR risks, including strategies to mitigate each potential issue upfront.
Gain Access to the Best Talent with an EOR in the UAE
If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring Emirati employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in the UAE, or a small business or startup trying to break into the Emirati talent marketplace without launching your own entity.
If you found this article helpful, I recommend signing up for our weekly People Managing People newsletter too. You'll get access to the latest insights from thought leaders, as well as our latest podcasts, and more software and service recommendations.