How to hire employees in Dubai?

How to hire employees in Dubai?

Dubai is considered a gateway to global business opportunities, as it serves as the storage and distribution hub of the Middle East. Therefore, having an on-the-spot presence can provide considerable work advantages. Dubai is one of the best work destinations for anyone to find a career. It is one of the most cosmopolitan cities in the world and has become the dynamic nucleus of the Arabian Gulf region with its attractive tax-free salaries and warm climate. The emirate of Dubai is ideal for someone to either work for an employer or be self-employed.

How to hire employees in Dubai?

Recruitment process depends mostly on the type of position that is offered. A clerical position, for example, can probably be filled simply by advertising the vacancy and by having the HR department shortlist and interview potential candidates based on the qualifications listed on their CVs.

 A middle or top Management position for a multinational corporation will probably be better filled through recruitment firms that specialize in the search of executive candidates. The recruiters will find a handful of suitable candidates that will be further screened by the employer’s HR department.

Professional recruiters have access to pools of potential pre-screened talents and scan a Resume looking for competencies and work experience that make the right candidate stick out from the rest. Every detail is important; work history, skills, experience, education must show the candidate ability to succeed in that particular sector and organization.

 Candidates who do not leave in the area will be interviewed via videoconference (the latest trend) or flown in with all expenses paid. It is definitely possible to hire a talent from abroad, but it is obvious that if a suitable candidate is found in Dubai, it would be better to offer him or her the position; Labor Laws, in fact, determine that the employer bears all expenses related to recruitment.

Although it is often not necessary to bring the candidate physically to Dubai to be interviewed, after an initial phone screening, it is better to plan for a face-to-face interview. Especially for top-level position, it is paramount to meet the candidate onsite to get an overall picture not only of his or her competencies but also of the personality and the potential fit in the organization.

The objective is to hire the right candidate for the right role for a company. A corporate recruiting strategist looks for job applicants who are good for the organization, not necessary for right now, but for the long term.

Regulations for hiring process in Dubai.- How to hire employees in Dubai?

The United Arab Emirates Labor Law regulates the process of hiring employees in Dubai. The employer is the one responsible for the procedure of hiring a foreign employee and the costs that come with this process. According to the law, a maximum probation period allows the employer (the employee) to decide if the position is suitable for him or her.

Due to the procedures of the UAE government departments, (Ministry of Education, Ministry of Labour, Dubai Dept. of Immigration, Dubai Police, Dept of Health & Medical Services, Knowledge & Human Development Authority, and other departments), the process of obtaining a UAE Residence Visa and/or a Work Permit can take anywhere from 1 to 3 months. It is imperative that the employee provide all documentation as per contract.

According to the new UAE labour law, the employer has to present a standard offer letter, which needs to be signed by the employee, to the UAE Ministry of Labour in order to apply for an entry permit for the employment visa.

Employment visa process: How to hire employees in Dubai?

Type an Offer Letter and Get Signature and Thumb Impression from the Proposed Employee.

If the employee is out of the UAE, to mail the letter and get scanned copy of the signature page.

Documents Required for Offer Letter: How to hire employees in Dubai?

Passport copy of employee, Photo, Profession, Salary Details and Original Signature Card of the Authorized Signatory, Trade License and Labour Establishment Card Copy.

Documents required for Work Permit application:

• Offer Letter with Company Seal/Sign and Employee’s Sign plus All documents (Passport Copy, one photo with white background, Attested Certificate Copy for certain professions (no need attestation for Secondary Certificates), Trade Licence Copy, Labour Computer Card Copy, Profession + Salary with allowance (if any)), GCC Driving License copy for Driver Visa application (Vehicle list from RTA also to be attached for Driver Visa), Sponsor’s E-signature Card.

• Education Certificate required for certain professions. No need for attestation of Secondary and Higher Secondary Certificates. Work Permit Approval will come after two days.

So, if you have not provided the documents he cannot process the visa and it does cost money to do the same. No employer will spend for an employee who is not willing to come.

Business owners in Dubai need to observe the legal requirements for employers and their obligations towards their employees. While some business sectors require that companies hire a percentage of UAE nationals, Dubai is a city that welcomes foreign workers and foreign investments.

Employee selection is the most important issue in business. Making the wrong hiring decision means losing away a substantial investment of time and money on recruitment, training and benefits.

The employer’s responsibilities in Dubai- How to hire employees in Dubai?

Before a company in Dubai can hire foreign employees, it must obtain two types of documents – an establishment labor card and an establishment immigration card from the Ministry of Labor. The General Directorate of Residency and Foreigners Affairs (DNRD) is another government body that governs the employment process for foreign workers. The procedure for obtaining these documents needed for hiring employees in Dubai is straightforward and the applications can also be made online. If you need assistance with this, our Dubai lawyers can help.

The Employment Law sets forth the obligations of the employer in relation to the employees. The company that hires personnel must provide work contracts and offer benefits for the individuals. While employers are not required to provide private health insurance, they must at least provide a government health card for each employee. The company must also observe the requirements for the maximum work hours per week, vacation time and special benefits for certain types of employees, like those on maternity leave or those on sick leave.

Receiving a job offer

The employment process in the private sector involves receiving a formal job offer, signing the employment contract, receiving a work permit and a work visa.

The offer letter contains important details of the job and an annex that summarises the most important aspects of the UAE Labour Law. Both parties must sign these documents.

As per labour reform regulations effective 2016, an offer letter made to a foreign worker becomes legally binding after it is signed by both parties. An offer letter to a foreign worker signed by both parties becomes a legal contract.

Hence, after signing, the employer is not allowed to alter or replace any provisions of the offer letter unless such changes have the consent of both the employer and the employee, are within the scope of law and do not compromise the rights of the employee.

The employer must ensure that the employee has read the offer letter and understood it. If it is proved that a worker did not go through the annexes before signing the labour contract, the employer will be fined AED 20,000 for submitting incorrect data to MoHRE.

If the employee is in the UAE, he must sign the offer letter before the employer can seek MoHRE’s preliminary approval for his employment.

Employers must disclose the terms of the offer letter to MoHRE. A copy of the offer letter is stored in the MoHRE’s database. Employees are issued work permits based on these offer letters.

Signing the contract

The employment contract is a document signed between the employer and the employee in which the latter undertakes to serve the employer and works under his management against an agreed fee paid by the employer.

The employment contract should be based on the offer letter signed by both parties and must be submitted to MoHRE within 14 days of the employee’s arrival in the UAE based on the employment entry permit or from the date of status change (if you are in a status which allows you to transfer your visa; i.e. not having violated any law).

Language of employment contract

In January 2016, MoHRE – Ministry of Human Resources and Emiratisation  approved a third language to be added on the job offer, labour contract and annexure.

In addition to Arabic and English, employees can choose from the following 9 languages: Bengali, Chinese, Dari, Hindi, Malayalam, Nepalese, Sinhalese, Tamil and Urdu.

This applies to workers coming from outside and those residing in the UAE that are seeking a new job, or moving from one company to another.

Types Of Employment Contract in UAE– How to hire employees in Dubai

Under the UAE Labour Law No. 8 of 1980, there are two types of employment contracts. The difference lies in the provisions for end of service gratuity and termination.

• limited term contract or (fixed-term)
• unlimited term contract.

In 2018, the UAE implemented the part-time contract system by virtue of a ministerial resolution.

Limited term contract (fixed-term)

In general, limited term contracts mention the start and end dates of the employment period. Unless the contract is renewed, it is automatically cancelled when it expires.

These contracts are adopted where an employer needs to engage employees for specific projects or specific duration.

According to recent reforms in the UAE’s labour market, limited term contracts are for a maximum duration of 2 years, unlike 4 years as before. The contract must also include a notice for termination.

Refer to Ministerial Resolution No. 765 of 2015 on the Termination of Employment Relations. 

Unlimited term contracts

An unlimited term contract is open-ended, more flexible and commonly used in the UAE. It can be terminated with mutual consent or by giving a notice of 1 to 3 months. The parties involved must honour their obligations throughout the notice period.

Therefore, an employment relation is deemed to have ended without due process when either the employer or employee terminates the employment relation without complying with legally mandated procedures.

In this case, the wronged party may initiate legal action and compensation.

Related links from MoHRE:

• Ministerial Decree 764 of 2015: Standard Employment Contracts 

Part-time contract

In 2018, Ministry of Human Resources and Emiratisation (MoHRE) implemented a new rule which allows the companies to recruit skilled workers from inside the country or from abroad under part-time contracts system. These types of contracts are limited only to skilled workers, namely holders of university degrees or higher and those who completed two or three years diploma in any technical or scientific field.

Under this new system, part-time contract employees can take several part-time jobs without the approval of the original or other secondary employers; however, they are obligated to take permit from the MoHRE.

The part-time contract is subject to same rules and penalties applicable to the regular employment contracts common in UAE: limited or unlimited.

Part-time contract may not be changed into a regular contract until after the end of the part-time employment contract. 

Responsibilities of the original/primary employer

Under the part-time contract, the original employer bears:

• the part-time contract fees as administered by MoHRE, according to UAE work permit fees linked to company classification system.
• the employee’s annual leave
• the employee’s end of service benefits
• any other financial obligations in proportion to the number of actual working hours and the amount of the wage.

Additionally, the original/primary employer may not require the worker to work more than the hours agreed upon or prevent him from working in a similar facility under the non-competition clause or for disclosure of the secrets of the facility. 

Responsibilities of the additional/secondary employer

The additional employer has to pay the same fees charged for temporary work permits as administered by MoHRE.

Reach Accountant Online VAT Accounting Software for Job Recruiters and Job Consultancies in UAE

Need to upgrade to Reach online VAT Accounting Software :

Reach accountant software is properly designed to fit all of the desires for a success running of the enterprise. The software may be used in industries ,buyers ,producers, outlets,  workshop ,commercial enterprise projects and so forth. It’s far an accounting software program which can routinely manage your ebook of accounts, taxes, inventory, sales, purchases and many more  online speedy and securely

Top Features of the Reach Online VAT Accounting Software are:

• Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.

• Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.

• Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.

• Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
• Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

·         Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

• Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.
• Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.
• Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.
• Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any 

• Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.

• * VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

• Receipt: Receipts can either be manually entered or imported it in excel format easily.
• Payments: Payments can either be manually entered or imported it in excel format easily.
• Multi Company: Manage business through comfort of the smart phone.
• Tally Import: Tally files can be easily imported to Reach Software of various periods and manage business easily.
• Auditor’s Report: Full Financial Report are available,Read process by Auditor,Tax Reports,VAT Report with e-filing options,PF & ESI Reports,Tax Consulting Modules are some featuress mentioned.
• Mobile Application: Access business information through tabs and android smart phones, pick photos of expense vouchers and attach to expenses, daily profitability and other key reports can be viewed on phone.

         ·      Business Automation: Leads from all sources,Leads extractions via mail server,Converting leads to appointments,Quotes,Converting quotes to Invoices,Email-SMS update,Delivery status update,Work pending strategye.

• Business Intelligence Dashboard: The software has a feature of providing you key statistics of the business at any given point of time.The dashboard displays work status, profit and loss, expenses graphically.It also features  best Selling Executive, Highest Selling product, Largest value customer for the month. Every night the client gets a SMS summing up the entire sales , expenses ,case production ,and stock value for the day.
• Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.
• Security: There is complete security of data stored in the hard disk. Data can be accessed and control by creating access restriction. One time password facilities also ensures a check in the log in to the website. 

• Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.

• Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free. 

• No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers. 

• API: The client can integrate the existing software with Reach accounting application , 

• Automatic Data Backup: Reach stores all the data in servers offsite with regular backups. Hence business information is safe and secure

·         User Interface & Complexity:The software is designed to make its use friendly and easy,no cumbersome process to operate the application and software.

• Scalability:It is an VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.

Top Two Features of the Reach Accounting Software 

• Outsourced Accounting: The software enables to finish the outsourced accounts in less than 30 minutes.

• Real Time Accounting: Allows client to record sales and purchases online, while finalizing accounts that is checking the Audit trail, providing MIS reports, checking Tax reports, printing financial reports and filing taxes.

Technology Used

Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis. Many of today’s small businesses find great advantages when adopting a virtual office environment. Rather than maintaining one centralized business location, employees are given the opportunity to work from home and connect via computer. Virtual offices can stretch across the country, or even exist within a small geographic area while still providing benefits to both employees and employers. Yet certain business functions need to be managed differently in a virtual environment. When it comes to accounting, a cloud system can improve virtual office management, especially for tasks such as expense tracking and financial report consolidation.

Benefits of Cloud Accounting

1. Spread the cost of the software by making payments by monthly subscription instead of one lump sum.
2. All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version.
3. You can access cloud accounting software anywhere that has an internet connection, so no need to use a particular computer or be stuck in the office.
4. As the name suggests, all the data is stored securely in “the cloud” which means on the supplier’s bank of servers, continually backed up, so you never have to worry again about using up your own hard-drive or taking regular backups.

Best of all, with cloud accounting software, your accountant can share your data, so they can help you if you are stuck on recording certain transactions in your accounts, like the purchase of a new laptop.  They can post their year-end journals directly, so your data is always up to date, but more importantly we can be more help to you.  For example if you would like your accountant to check the figures for your VAT Return or even file it,or prepare some management