Hiring Your First Employee in the UAE? Here is Everything You Need to Know | Recruitment for Startups in UAE

Congratulations!

If you are reading this, you are probably preparing to make your first hire, a major milestone for any founder or small business.

It is exciting, but let us be honest, it is also a bit overwhelming.

Hiring in the UAE comes with unique legal and operational requirements, and getting it right early can save you time, cost, and stress down the line.

This guide walks you through what every founder or business owner should know before bringing on their first employee.

Step 1: Be Clear on Why You Are Hiring

Before anything else, take a step back and get clear on the purpose behind the hire.

• What are your immediate business goals?

• Which responsibilities need to be offloaded or supported?

• How will this role contribute to growth or stability?

Creating a People Plan helps you map out how this hire supports your broader goals.

It defines what success looks like and creates a solid foundation for onboarding, measuring impact, and planning for the future.

Step 2: Understand the Full Cost of Hiring in the UAE

In the UAE, hiring a full-time employee involves more than just a salary.

You will also need to account for:

✔️ Compensation Package

→ Basic salary

→ Housing or transport allowances (if applicable)

→ Health insurance (mandatory in most Emirates)

→ Annual flight allowance (commonly offered)

✔️ Government and Admin Costs

→ Work permit and residence visa

→ Medical fitness test and Emirates ID

→ Immigration and free zone fees

✔️ Legal Compliance Setup

→ Wage Protection System (WPS) registration

→ Ministry of Human Resources & Emiratisation (MOHRE) processes

→ End-of-service gratuity accrual

Knowing your full cost-to-company before hiring is essential for budgeting and planning.

Many founders are surprised by the extras, so clarity here helps avoid sticker shock later.

Step 3: Understand Legal and Documentation Requirements

Hiring legally means following UAE labour laws and ensuring the correct paperwork is in place from day one.

Here is what is required:

✅ Offer Letter and Employment Contract

→ Dual language (English and Arabic)

→ MOHRE or free zone-compliant format

→ Clearly outlining salary, title, duties, probation, and leave

✅ Written Statement of Employment Particulars

This is not the same as a contract.

It covers the basics such as job title, place of work, hours, pay cycle, leave entitlements, and probation details.

✅ Visa and Work Permit

→ Processed through mainland or free zone authority

→ Must be finalised before the employee starts work

✅ Health Insurance

→ Mandatory in most Emirates

→ Must be valid and registered under the employer

✅ Onboarding File

→ Emirates ID copy, passport, visa, medical test, contact info

→ Employment contract, insurance certificate, payroll setup

Proper documentation protects you as the employer and sets expectations for the new hire.

Step 4: Prepare for a Solid Onboarding Experience

Your employee’s first week can make or break the working relationship. A smooth and structured onboarding helps them hit the ground running.

Here is what to prepare:

→ Set up their workspace, laptop, email, and logins

→ Provide access to tools and platforms they will use

→ Create a clear first-week agenda: introductions, systems training, business overview

→ Introduce them to your company culture, values, and goals

→ Share your expectations and communication style from day one

Even if you are a small team or fully remote, these first steps matter. They build trust and clarity from the start.

Step 5: Set Your HR Foundations

Before you bring someone on board, make sure you have basic HR systems and policies in place.

These not only keep you compliant but also give your employee confidence in your structure and professionalism.

Here is what you will need:

📘 HR Policies & Company Handbook

→ Code of conduct

→ Leave and attendance policy

→ Remote work or hybrid expectations

→ Grievance, discipline, and termination policies

📁 Employee File System

→ Secure recordkeeping of contracts, documents, and performance notes

📊 Basic Performance Framework

→ Simple goal-setting and progress review structure

These foundations help avoid ambiguity and reduce future risk.

Step 6: Know Your Ongoing Responsibilities as an Employer

Once the employee is on board, here is what you must maintain:

→ Register their salary in WPS and pay on time (if WPS relevant)

→ Maintain up-to-date visa and insurance documentation

→ Track annual leave and sick days

→ Accrue and manage end-of-service gratuity

→ Prepare for compliance inspections (especially in free zones)

Even with just one employee, UAE labour law still applies.

Staying on top of this ensures you are protected and your business can grow without unexpected HR hiccups.

Final Word: Hiring Your First Employee Is a Big Step, But You Do Not Have to Navigate It Alone

The legal, financial, and practical sides of hiring in the UAE can be complex, especially for first-time employers.

At HRnow, we help founders like you:

→ Build compliant HR setups from day one

→ Prepare employment contracts, onboarding packs, and policies

→ Understand the cost and risk of hiring

→ Support long-term growth through smart people practices

Let us make your first hire a success and set the stage for everything that follows.

👉 Book our FREE HR AUDIT consultation today

👉 Buy our Fast & Furious HR Starter Kit

👉 Or simply get in touch with your questions +971509663035

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