How to Hire Employees in a UAE Free Zone: Work Visa and Labour Steps

Hiring employees as a UAE free zone company involves obtaining an establishment card, applying for work permits, and sponsoring UAE residence visas. Here is the complete employer guide.

Step 1: Check Your Visa Quota

Every UAE free zone company has a visa quota — the maximum number of employees it can sponsor. Visa quota is determined by: office size (larger space = more visas), free zone package type (some packages include a fixed number of visas), and the free zone’s own policies. If your current quota is insufficient, upgrade your office space or package to increase it before submitting employee visa applications.

Step 2: Obtain the Establishment Card

The Establishment Card is the free zone’s confirmation that your company is authorised to sponsor employees. Most free zones issue the Establishment Card as part of the licence setup. If yours was not issued automatically, request it from the free zone client services — typically processed within 3–5 working days at no additional cost.

Step 3: Labour Approval / Entry Permit

For each new hire, submit the entry permit application to the free zone authority: employee’s passport copy, visa-size photo, job title and salary. The free zone issues an employment entry permit within 3–7 business days. The employee can now enter the UAE on this entry permit.

Step 4: Employment Contract

Sign a UAE Labour Law-compliant employment contract before the employee starts work. Mandatory contract elements: job title, salary (AED), probation period (max 6 months), working hours, annual leave entitlement (minimum 30 days after 1 year), and end-of-service gratuity calculation basis. Register the contract with the free zone authority — most free zones require contract registration as part of visa processing.

Step 5: Health Insurance

Health insurance is mandatory for all employees in Dubai (DHA regulation) and Abu Dhabi (DOH regulation). Arrange health insurance before or simultaneously with visa stamping. Minimum cover: Daman Basic plan (AED 650/year per person) satisfies legal requirements; most employers provide enhanced coverage. Submit health insurance proof during the visa application process.