How to Hire Employees in a UAE Free Zone Company 2026
Hiring employees for your UAE free zone company involves sponsoring work visas, complying with UAE labour law, and setting up payroll correctly. This guide covers the complete process for 2026.
In this guide:
Step-by-Step: Hiring an Employee in a UAE Free Zone
- Check your visa quota — ensure your licence has available visa slots (or upgrade)
- Draft an employment contract — must comply with UAE labour law. Include: job title, salary, working hours, annual leave (minimum 30 days/year), notice period (minimum 30 days), probation period (maximum 6 months)
- Apply for employment visa entry permit — submitted through the free zone. The employee can then enter the UAE on this permit.
- Medical test — required for all employees at UAE-approved medical centres
- Emirates ID registration — employee must register biometrics
- Work permit / employment visa — issued once medical and EID are done
- Register employment contract with MOHRe — contracts must be registered in the Tasheel system
- Set up payroll via WPS — UAE Wage Protection System is mandatory for companies with 100+ employees and recommended for all
Employee Costs in UAE Free Zones
| Cost Item | Amount (AED) |
|---|---|
| Employment visa entry permit | 300 – 600 |
| Medical test | 200 – 500 |
| Work permit / employment visa | 500 – 1,000 |
| Emirates ID | 370 – 1,000 |
| Health insurance (compulsory in Dubai) | 600 – 3,000/year |
| ILOE insurance (mandatory) | ~AED 5/month |
| Total first-year cost per employee | ~2,000 – 6,000 (excl. salary) |
UAE Labour Law Key Points for Employers
- Annual leave: Minimum 30 calendar days after 1 year of service
- Gratuity (end-of-service benefit): 21 days basic salary per year for first 5 years; 30 days per year thereafter
- Sick leave: 15 days fully paid, 30 days half pay, then 30 days unpaid (per year)
- Notice period: Minimum 30 days (can be longer per contract)
- Overtime: 25% premium on normal rate; 50% premium for night/holiday overtime