UAE Hiring Compliance Checklist for SMEs (2026)

Hiring in the UAE requires compliance with multiple regulations — from labor law and data protection to wage protection and visa rules. This checklist covers the essentials every SME employer must know.

Employment contracts

UAE Federal Decree-Law No. 33/2021 requires all employment relationships to be governed by a written contract registered with MOHRE. Since February 2022, all contracts must be limited-term (maximum 3 years, renewable). Unlimited contracts are no longer permitted for new hires.

Data protection during recruitment

Under the UAE Personal Data Protection Law (PDPL, Federal Decree-Law No. 45/2021), employers must disclose how candidate data is collected, stored, and processed. If you use AI tools like Rekroot for resume screening, inform candidates that their data will be analyzed by automated systems. Rekroot includes this disclosure on every application form.

Wage Protection System (WPS)

All UAE employers must pay salaries through the Wage Protection System — an electronic system that records wage payments. Salaries must be paid within the agreed timeframe, and WPS compliance is monitored by MOHRE.

Visa and work permit

Before a foreign employee can start work, the employer must obtain a work permit and residence visa. The process involves MOHRE labor approval, Emirates ID registration, and medical fitness testing. Processing typically takes 2–4 weeks.

Probation period

Probation cannot exceed 6 months. During probation, either party can terminate with 14 days' written notice. The employer must notify MOHRE of any probation termination.

End of service gratuity

Employees who complete 1+ year of service are entitled to end-of-service gratuity: 21 days' basic salary per year for the first 5 years, and 30 days' per year thereafter, capped at 2 years' total salary.