How to Hire Your First UAE Employee 2026 — Free Zone Company Guide
Hiring your first UAE employee as a free zone company owner involves several steps across multiple UAE authorities. Here is the complete 2026 guide.
In this guide:
Before Hiring: Confirm Your Visa Quota
- Check your current visa quota with your free zone authority
- Standard flexi-desk: Usually 1-3 visa slots (for investor + 1-2 employees)
- Upgrade if needed: Contact free zone to purchase additional visa quota
Step 1: Draft an Employment Offer Letter
- Offer letter: States: position, salary, start date, benefits (health insurance, annual leave)
- In UAE: Employment contracts must be in Arabic (MoHRE standard contract form) for visa purposes
- You will need both: An English offer letter for the employee AND an Arabic employment contract for MoHRE
Step 2: Apply for Work Permit and Visa
- Submit employee visa application via your free zone portal
- Pay visa application fee
- Entry permit issued for the employee (3-7 business days)
- Employee enters UAE on entry permit
- Employee completes medical test
- Employee completes Emirates ID biometrics
- Employment visa stamped; Emirates ID issued
Step 3: Register Employment Contract with MoHRE
- UAE Ministry of Human Resources and Emiratisation (MoHRE)
- Register the Arabic employment contract via MoHRE portal or free zone authority
- Labour card issued: Proves the employment relationship is officially registered
UAE Employer Obligations
- Health insurance: Mandatory for all UAE employees (DHA in Dubai; HAAD in Abu Dhabi); AED 1,500-5,000/year minimum
- Annual leave: 30 calendar days per year (after 1 year of service)
- End of Service Gratuity: 21 days of basic salary per year for first 5 years; 30 days per year thereafter
- WPS (Wage Protection System): Salary must be paid via UAE WPS-registered payroll system