How to Hire Your First Employee in a UAE Free Zone 2026
Hiring your first employee in a UAE free zone involves several steps across the free zone authority, UAE immigration, and the Ministry of Human Resources. This guide covers the complete employment visa and onboarding process for UAE free zone companies in 2026.
In this guide:
Prerequisites Before Hiring
- Active UAE free zone trade licence
- Company establishment card (free zone issues this after company formation)
- Visa quota available (most free zones assign a visa quota per licence package)
- Wage Protection System (WPS) registration (mandatory before first employee)
- DEWS or GPSSA enrolment (workplace savings scheme for DIFC/ADGM employees)
WPS (Wage Protection System) Registration
All UAE free zone employers (outside DIFC/ADGM) must register with WPS before hiring:
- Register with MOHRE (Ministry of Human Resources): apply via MOHRE portal for employer registration number
- Register your bank account for WPS salary transfers
- Once registered, all employee salaries must be paid via WPS-compliant bank transfer
Employment Visa Process
- Step 1: Offer letter signed by candidate
- Step 2: Apply for employment entry permit via free zone authority (submit: passport copy, photo, offer letter)
- Step 3: Entry permit issued (employee can enter UAE on it)
- Step 4: Employee arrives in UAE
- Step 5: Medical fitness test (same day or next day at approved clinic)
- Step 6: Biometrics registration at immigration centre
- Step 7: Labour card issued (MOHRE)
- Step 8: Residence visa stamped in passport
- Step 9: Emirates ID applied and issued (2–4 weeks)
Employment Contract Requirements
UAE Federal Decree-Law No. 33 of 2021 requires: written contract in Arabic and employee’s language, fixed-term duration (max 3 years renewable), basic salary specified, role/title, working hours, leave entitlement, probation period (max 6 months), notice period (min 30 days), and end-of-service gratuity entitlement statement.
Cost per Employee (Year 1)
- Entry permit: AED 600–800
- Medical fitness: AED 250–500
- Visa stamping: AED 200–400
- Emirates ID: AED 370
- Labour card: AED 300–500
- Health insurance (mandatory): AED 600–2,000/year
- Total visa processing: AED 2,300–4,600 per employee