Once the employee starts, the relationship must be formalised by law. Here's what matters to an owner.
MOHRE contract and WPS
- On the mainland the contract is registered with MOHRE and must comply with federal labour law
- Salary is paid through the WPS (Wage Protection System)
- The contract sets out the role, salary and terms
End-of-service gratuity
21 days of basic salary per year for the first 5 years, then 30 days per year; on basic salary, with a cap. It's payable at the end of the contract within a short statutory window.
How we help
Turnkey: we help formalise the contract properly, set salary, bonuses and KPIs, and draft the onboarding plan.
Frequently asked questions
What types of employment contracts exist in the UAE?
Since 2022 the UAE uses limited-term employment contracts registered with MOHRE. The contract sets out salary, term, duties and termination conditions. The exact form depends on whether it's mainland or free zone.
What is WPS and why does it matter?
WPS (Wage Protection System) is a government system for paying salaries through banks, mandatory for mainland companies. It confirms employees are paid in full and on time, protecting both sides.
Can you set a probation period?
Yes, a probation period is allowed and usually does not exceed 6 months. Notice rules for termination during probation are governed by labour law; the terms should be set out in the contract in advance.
Help with the paperwork?
Describe the task — we'll advise on the contract, salary and motivation. Free.
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