UAE Employer Obligations Guide

Essential compliance requirements for employers in the UAE including WPS, health insurance, and safety regulations.

Employer Obligations Under UAE Labour Law

Employers in the UAE have specific legal obligations under Federal Decree-Law No. 33 of 2021 to ensure compliance with labour regulations and protect employee rights. Failure to meet these obligations can result in substantial fines, business license suspension, or criminal prosecution.

Contract and Registration Requirements

• Contract Registration: All employment contracts must be registered with MOHRE within 14 days of commencement
• Written Contracts: Contracts must be in writing and include all mandatory terms
• Arabic Language: Contracts must be in Arabic (translations permitted as supplementary)
• Record Keeping: Maintain accurate employee records for at least two years after employment ends

Wage Protection System (WPS)

All employers must pay employee wages through the Wage Protection System, an electronic salary transfer system monitored by the Central Bank and MOHRE. Salaries must be paid within 10 days of the due date. Non-compliance can result in fines starting at AED 50,000 per employee and potential suspension of company operations.

Health Insurance and Safety

• Health Insurance: Mandatory health insurance coverage for all employees in most emirates
• Workplace Safety: Provide safe working conditions and necessary safety equipment
• Midday Break: During summer months (June 15 - September 15), outdoor work is prohibited between 12:30 PM and 3:00 PM
• Work Injury Compensation: Cover medical expenses and compensation for work-related injuries

Visa and Labour Card Sponsorship

Employers must bear all costs related to recruitment, visa processing, labour card issuance, and repatriation at end of employment. Deducting these costs from employee salaries is illegal and can result in fines of up to AED 100,000. Employers must also ensure timely visa renewal and maintain valid work permits for all employees.