FMC Group’s Employee Leasing services in the UAE provide companies with the capability to employ staff, handle payroll operations, and maintain regulatory compliance without requiring the establishment of a local business entity within the Emirates.
FMC Group functions as an Employee Leasing service provider by recruiting personnel on your company’s behalf and managing payroll operations, tax obligations, employee benefits packages, and ensuring adherence to UAE legal requirements. This encompasses maintaining conformity with local employment legislation and regulatory standards, which proves crucial for minimizing legal exposure and guaranteeing seamless business functionality. By removing this administrative burden, your organization can dedicate complete attention to core business activities.
Employment within the UAE is characterized by its access to an exceptionally skilled and multicultural talent pool, attracting international professionals due to the nation’s position as a global commercial center and its strategic geographical position linking Asia, Europe, and Africa. The UAE’s varied workforce includes personnel from numerous linguistic, cultural, and national origins. The UAE provides substantial benefits including tax-exempt personal income, premium infrastructure, and required employee benefits such as health insurance and additional employment perks, encompassing statutory leave entitlements, and end-of-service gratuity payments. These elements establish it as an appealing location for exceptional talent, supporting elevated employee satisfaction and retention rates.
Rapid Market Access: Recruit personnel within days rather than months.
Comprehensive HR Assistance: From employee onboarding to payroll management and payroll systems, our services cover all aspects.
Complete Compliance: Maintain current knowledge of UAE labor legislation, regulations, and local employment laws to guarantee full adherence.
Cost Efficient: Eliminates the necessity for local company establishment.
When your local operations expand sufficiently, you can seamlessly transfer personnel to your own subsidiary. This also offers a swift exit strategy when required. Beyond the UAE, our Employee Leasing services are available in over 50 countries. Our services guarantee prompt and precise payments, which are crucial for compliance and employee satisfaction.
Schedule a complimentary consultation with our team, and we will provide guidance throughout the complete process
2. Talent Acquisition
Select your preferred candidate or utilize our international recruitment services.
3. Contract Negotiation and Client Integration
We will review salary structures, benefits packages, and address all inquiries. Subsequently, we prepare the necessary agreements: A service contract between the client and FMC Group, and an employment contract between the employee and FMC Group. Employment agreements represent the legal documentation necessary for hiring employees in the UAE, ensuring compliance with labor laws and defining the rights, benefits, and obligations of both employees and employers.
4. Employee Integration and Administrative Management
We recruit the employee(s) through our UAE entity using the salary and conditions you have established. We handle all HR administrative tasks, including contracts, payroll, and health insurance, ensuring complete compliance with relevant regulations.
5.Employee Supervision
You retain functional oversight of the employees, while we manage HR by handling all administrative responsibilities such as onboarding, payroll, and compliance.
At FMC Group, our distinguishing characteristic lies in our commitment to establishing authentic partnerships and delivering expert, personalized guidance. While we employ advanced software to maintain efficiency and compliance, our methodology is people focused. Repeatedly, we have observed that both our clients and the employees we support genuinely appreciate the direct, human interaction we provide in every engagement.
Our clients and their teams frequently have distinctive questions and specific needs that technology alone cannot address. This is why our responsive and consultative approach is highly valued. With more than 25 years of experience supporting clients in international markets and over 15 years specializing in employee leasing, we are dedicated to being your knowledgeable, approachable, and dependable human partner.
FMC Group streamlines the complete visa and onboarding procedure, ensuring your employees are legally employed and fully compliant with DMCC and UAE regulations. We manage every administrative detail from visa sponsorship and renewals to payroll and HR support, allowing you to concentrate on your business growth without the burden of local bureaucracy.
Complete automation at the front end often results in additional work for clients and is optimized for the service provider, not the client. Our strategy differs: we optimize entirely for our clients to save time, resources, and avoid complications.
Unlike many solutions that prioritize convenience for the service provider, our approach is centered completely around our clients’ needs. We believe that automation should simplify your experience, not add extra steps or complexity. Experience the difference of a partner who places your needs first.
The day-to-day management and supervision of employees are handled directly by your team. You retain complete control over task assignments, performance monitoring, and operational direction, ensuring your employees remain fully integrated with your business objectives.
All leave requests are submitted by employees through our HR software. Employees send their requests directly to you for approval. After you grant approval, FMC Group finalizes the leave in the HR system and ensures accurate tracking.
We also monitor leave balances and provide you with regular, transparent reports on leave usage.
Employees record their travel costs using our dedicated expense management software. Each expense submission includes a summary sheet and copies of all relevant receipts. These are sent by your employee to you for review and approval. Once you approve the expenses, FMC Group processes and pays out the reimbursements promptly to the employee.
Client situation: A global consulting services and market intelligence company with headquarter in the USA decided to enter the Middle East market with their own Business Development Manager.
Project scope: Recruitment of a Business Development Manager through FMC Human Resources, hired by FMC Services DMCC with the employee leasing service in Dubai.
Result: The Business Development Manager travels through the whole GCC countries to acquire new customers and maintain & develop further contacts with the already existing customer portfolio. After less than 6 months, our client decided to hire an additional consultant in Dubai to support their consulting team.
The contractual framework is an Employee Leasing arrangement, such as with FMC Group, involves two primary contracts that establish the roles and responsibilities between the client company, the Employee Leasing provider, and the employee:
This represents a service agreement where FMC Group functions as the legal entity and legal employer of the employee on behalf of the client. The contract clearly defines FMC Group’s responsibilities, including managing payroll, administering statutory benefits, ensuring compliance with local labor laws, and handling employment contracts and terminations. Meanwhile, the client maintains control over the employee’s daily work, performance management, and operational decisions. This agreement specifies the scope of services, fees, liability, confidentiality.
The employee executes a local employment contract directly with FMC Group, which serves as the legal employer. This contract includes all standard employment terms such as job duties, working hours, salary, leave entitlements, and dispute resolution governed by the local labor laws of the UAE. Since FMC Group is the legal employer, it assumes responsibility for compliance with employment regulations, payroll, taxes, and benefits.
In summary, FMC Group legally employs the employee and handles all employment administration and compliance, while the client company directs the employee’s daily activities and business objectives.
In the UAE, employment termination notice periods are determined by UAE Labor Law and must be explicitly outlined in the employment agreement.
If the notice requirement is not fulfilled, the party at fault must compensate the other party with pay equal to the unserved notice period.
Our team ensures that every termination process fully adheres to UAE labor standards, with meticulous handling of documentation, notice communications, and final settlements. This not only safeguards your organization but also promotes a smooth and compliant offboarding experience for all parties involved.
Many organizations offer these perks, particularly to employees whose roles require regular travel, such as sales teams. The decision to provide a vehicle or transportation benefit is typically guided by your company’s policy and the nature of the position, rather than by law. If your company chooses to offer this, it should be clearly outlined in the employment agreement. The amount and structure of the allowance can be tailored to fit your industry standards and operational requirements.
Our team specializes in helping businesses develop compelling remuneration packages for employees in the UAE. We can handle all administrative aspects of transportation allowances, ensure accurate documentation in contracts and payroll, and provide market insights to help you benchmark your benefits—keeping your offer both competitive and compliant with local expectations.
When employing staff in the United Arab Emirates (UAE) through us as your Employer of Record (EOR), companies often ask whether they are required to pay allowances and what advantages this might bring. Here’s a comprehensive guide to help you make informed decisions.
No Legal Obligation
UAE labor law does not require employers to provide specific allowances, such as housing or transportation, to employees. The law primarily mandates that salaries must be sufficient to cover employees’ basic needs, but the structure of the salary, whether as a lump sum or split into basic pay and allowances, is generally left to the employer and employee to be agreed.
Common Practice
Despite the lack of a legal requirement, it is standard practice in the UAE to split the salary into a basic component and various allowances such as housing, transport, education, and others. The basic salary must be a minimum of 60 % of the total package.
Attracting and Retaining Employees: Enhanced benefits packages are particularly attractive to expatriate workers, many of whom expect support for costs such as accommodation, transport, and education. Competitive allowances can help you secure top talent and improve retention rates.
Structuring Compensation: Although there is no income tax in the UAE, structuring compensation to include allowances can reduce employer liabilities for end-of-service gratuity, as this is calculated based on the basic salary only.
Aligning with Local Norms: Providing customary allowances ensures your compensation practices are in line with regional standards, which helps avoid disputes and strengthens your reputation as a preferred employer.
Supporting Employee Well-being: Allowances such as health insurance, tuition, and travel contribute to higher employee satisfaction, which can positively impact productivity and loyalty.
When you partner with us as your Employer of Record in the UAE, we ensure that all salary components and allowances are managed in strict accordance with local regulations and market best practices, reducing both your administrative workload and risk of compliance issues.
Health insurance is mandatory for all UAE residents, including expatriates. Employers are legally required to provide health insurance for their employees as a prerequisite for issuing or renewing residency permits. The insurance policy must be purchased from UAE-approved providers; international or foreign insurance plans are generally not accepted for residency or visa purposes unless specifically recognized by UAE authorities and compliant with local regulations.
Dependents such as spouses and children must also have valid health insurance, though employers are not always required to cover them.
In our Employee Leasing model, we have two different possibilities. We can offer a group health insurance plan that provides your employees comprehensive coverage at highly competitive rates. With this plan, your team gains access to a wide network of healthcare providers and essential benefits such as inpatient and outpatient care, emergency services, and maternity coverage. The group insurance is cost-effective, as premiums are generally lower than individual plans. Enrolling in our group plan is simple and provides peace of mind.
Alternatively, we understand that every client has unique needs, so we also offer the flexibility for employees to select individual health insurance plans. If our client prefers, we can choose a different insurance provider or tailor their coverage to fit specific requirements.
Basic health insurance (applicable only up to4,000 AED monthly) for employees in the UAE typically ranges from AED 320 to AED 1,500 per year.
Mid-range plans can cost AED 3,000 to AED 7,000 per year per employee.
Premium options may exceed AED 30,000 per year, depending on the level of benefits and coverage selected.
If the employees have a family, they normally expect that the health insurance for the family will be covered by our clients, in addition, but this is subject to negotiation
FMC Group operates in DMCC (Dubai Multi Commodities Centre). The visa application and management are handled entirely by FMC Group, ensuring compliance and efficiency throughout the process. Here’s an overview:
In the UAE, employees’ salaries are not subject to income tax, so the full agreed amount is paid out, with no distinction between gross and net pay.
Expatriates are not required to make social security contributions to the UAE government as is common in other countries. Other than mandatory health insurance, there are no additional payroll deductions.
Salary levels for Employee Leasing employees in the UAE vary widely based on role, industry, and experience. As of 2025, there is no officially mandated minimum wage for all private sector employees, though practical minimums are determined by market standards and visa requirements.
For instance, professionals such as engineers or specialists typically earn between AED 10,000 and AED 15,000 per month, while managers and executives may receive between AED 25,000 and AED 40,000 or more monthly. In high-skilled fields like finance, legal, HR, and project management, salaries range from around AED 10,000 for entry-level positions to AED 100,000 or more for senior leadership roles.
Most EOR employees working in professional or white-collar jobs earn between AED 17,000 and AED 40,000 per month, according to the latest UAE salary reports.
Alongside regular wages, UAE law entitles employees to end-of-service gratuity (severance pay) when their employment ends. This is calculated based on the employee’s base salary and years of service. Ensuring compliance with these rules is crucial for HR and payroll operations.
At FMC Group, we use current market data and our recruitment experience to help you benchmark and set competitive salaries for EOR employees in the UAE, so you can attract and retain the best talent while staying fully compliant with local laws.
FMC Group charges a fixed monthly fee per employee, which covers all administrative, HR, payroll, and compliance-related services.
To fulfill statutory requirements, FMC Group includes a monthly accrual for the End of Service Gratuity (EOSB) in our invoices. This ensures that adequate funds are reserved to meet this legal obligation, guaranteeing that gratuity payments are made in accordance with UAE labor law when an employee leaves. Our accrual method enhances transparency, supports precise financial planning, and reduces the risk of unforeseen costs at the end of employment.
When you engage FMC Group as your Employee Leasing Provider in the UAE, you have the option to include an annual flight ticket allowance as a valuable benefit for your employees. Providing yearly airfare to the employee’s home country is a highly attractive incentive and is widely offered in the UAE, especially for expatriates.
This allowance can be tailored according to your company’s policy, whether in the form of a cash payment or actual flight bookings, and can also be extended to include immediate family members if desired.
FMC Group oversees the complete process of visa sponsorship, Emirates ID processing, and all related government fees as part of our Employee Leasing offering. These visa and immigration expenses are billed directly to our clients, with transparent invoicing every step of the way to ensure ease and full compliance for your organization.
In the UAE, employers frequently enhance their compensation packages by offering optional benefits such as housing, transportation, or education allowances on top of the required salary and health insurance. Although these allowances are not mandated by law, they are widely adopted within the local market to attract and retain skilled professionals, particularly expatriates.
With FMC Group’s Employee Leasing service, these additional benefits can be seamlessly incorporated into your compensation plan. We ensure that all such perks are managed in a compliant and transparent manner, reinforcing your commitment to employee well-being and giving your organization a competitive edge in the UAE’s dynamic job market.
FMC Group provides a full range of employments solutions in the UAE, including comprehensive support for recruitment. This includes sourcing qualified candidates, managing the hiring process, and facilitating onboarding and orientation to ensure a smooth transition for your new employees.
FMC Group can provide you with a total cost estimation for budgeting when hiring Employee Leasing employees in the UAE. FMC Group’s team will prepare a detailed, tailored cost breakdown based on your specific requirements, role profiles, and benefit preferences, ensuring full transparency and compliance with UAE regulations.
If you would like a personalized cost estimate, please contact FMC Group directly with your employee details and preferences, and we will provide a comprehensive quotation for your planning and budgeting needs.
When terminating an employee in the UAE, several costs and obligations arise. Employers should understand and prepare for these requirements to ensure compliance and a seamless offboarding process.
Notice Period Obligations
Employees who have served continuously for at least one year are entitled to an end-of-service gratuity, calculated as follows:
All outstanding payments must be cleared upon termination, including any:
If a fixed-term contract is ended without valid reason before its completion, the employee may be eligible for compensation, often up to three months’ salary.
If the termination is ruled arbitrary or without justifiable cause, UAE labor courts may award additional compensation, sometimes up to three months’ salary, on top of other entitlements.
Employers are generally responsible for the repatriation costs of expatriate employees, unless there is an alternative agreement in place.
At FMC Group, we handle all administrative steps related to ending an employee leasing contract in the UAE. This includes managing legal notice periods, calculating final settlements and gratuity, handling repatriation, and ensuring every step complies with UAE labor laws. With our expertise, you can expect a transparent, fair, and efficient process that minimizes your legal risks and administrative workload.
When you are employed through FMC Group’s Employee Leasing service in the UAE, it’s essential to understand the rules and expectations around working hours, especially during Ramadan.
The standard workweek is 8 hours per day or 40 hours per week for private sector employees.
Workweek Structure: Monday–Friday is the official work week in the UAE.
Breaks: You cannot work more than five consecutive hours without a break of at least one hour. This break is not counted as working time.
Overtime: Overtime is permitted up to 2 hours per day, with extra pay. Regular overtime is paid at least 125% of your basic hourly wage, while night or Friday overtime is paid at least 150% of your basic hourly wage.
Reduced Hours: During Ramadan, all Muslim and non-Muslim employees are entitled to a reduction of 2 hours per day, resulting in a maximum of 6 hours daily.
No Salary Reduction: The reduction applies without any decrease in salary.
Applicability: This rule applies regardless of whether you are fasting.
Breaks and Overtime: Standard break and overtime rules still apply during Ramadan.
Employee Leasing staff in the UAE are entitled to at least 30 calendar days of paid annual leave per year upon completing one year of continuous service. If you have completed at least six months but less than a year, you receive two days of paid leave per month.
Unlike many other countries, annual leave is counted in calendar days, not just workdays. For example, if you take one week off, that equates to 7 days of annual leave. Some companies may count a single day’s leave on a Friday as 3 days for instance, if the company has specific internal policies. Calendar days always include weekends and public holidays that fall during your leave, unless specifically excluded by company policy.
Some employers, especially those with a five-day workweek, use a “working days” model, offering 22 working days of annual leave. This model is allowed if the total time off is at least as favorable as the 30 calendar days minimum. For five-day workweeks with a Saturday–Sunday weekend, 22 working days effectively offers the same rest as 30 calendar days.
Maternity Leave: 60 days total 45 days fully paid, followed by 15 days at half pay. Additional unpaid leave may be available depending on circumstances.
Paternity Leave: Male employees are entitled to 5 days of paid paternity leave, to be taken within six months following the birth of the child.
Compassionate Leave: Bereavement leave is granted according to the circumstances and as outlined in the UAE labor law.
Hajj Leave: Employees are eligible for up to 30 unpaid days to perform Hajj once during their employment.
Sick leave for Employee Leasing workers in the UAE is governed by labor law and offers fair support while you recover:
First 15 days: Full salary
Next 30 days: Half salary
Remaining 45 days: Unpaid
FMC Group will guide both clients and employees through all documentation, help maintain clear leave records, and ensure salary is processed correctly during sick leave. These practices foster compliance and peace of mind for employees and employers alike.
85% of the population in the UAE are foreigners. The UAE’s workforce is renowned for its exceptional diversity, with employees representing more than 200 nationalities. Employee Leasing employees in the UAE come from a wide range of backgrounds, including South Asia, Southeast Asia, the Middle East, Africa, India, Europe, and beyond. This multicultural environment includes a significant number of foreign employees, who are a common category within the UAE’s workforce. Companies can also hire and manage global employees, building international teams by employing staff from multiple countries.
At FMC Group, we leverage this diversity by sourcing Employee Leasing candidates from both local and international talent pools, ensuring our clients have access to the broadest possible range of qualified professionals. This approach enables businesses to build highly adaptable and globally minded teams that reflect the dynamic nature of the UAE market.
FMC Group Dubai
Cluster Y – Swiss Tower, Office 10 02 – Jumeirah Lake Towers Dubai, UAE
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