How to Hire an Employee in UAE Free Zone 2026 — Complete HR and Visa Guide
UAE free zone companies can hire employees and sponsor their UAE work visas. Here is the complete 2026 guide for hiring in a UAE free zone.
In this guide:
Can a UAE Free Zone Company Hire Employees?
Yes — UAE free zone companies can hire employees. The number of employees you can hire is limited by your visa quota (based on your office space/package). See our Visa Quota Comparison guide for details by free zone.
Employee Types in UAE Free Zone
- Investor/Partner Visa: For company shareholders and directors
- Employment Visa: For hired employees
- Part-Time Employee Visa: Available in some free zones
Step-by-Step Hiring Process
- Confirm visa quota: Check your current visa allocation in the free zone portal
- Create employment offer letter
- Employee applies for employment entry permit (through free zone or GDRFA)
- Employee enters UAE on entry permit (or status change in UAE)
- Medical fitness test (employee attends at approved clinic)
- Emirates ID biometric registration
- Employment visa stamped in passport
- Employee can now legally work in UAE
Employee Costs in UAE (2026)
- Employment visa fee: AED 2,500-5,000 (paid by employer in most cases)
- Medical fitness test: AED 200-400
- Emirates ID: AED 200-400
- Medical insurance: Mandatory in Dubai (min. AED 600-1,200/year); Abu Dhabi has its own scheme
- End of Service Benefit (ESB): 21 days salary per year of service (for employees serving up to 5 years)
UAE Labour Law for Free Zone Employees
UAE Labour Law (Federal Decree-Law No. 33 of 2021) applies to most UAE free zone employees. Key rules:
- 48-hour maximum working week (8 hours/day, 6 days); overtime at 125-150% rate
- 30 days annual leave after 1 year of service
- End of Service Benefit: 21 days salary per year (first 5 years), 30 days salary per year (after 5 years)
- 3-6 month probation period allowed