Complete Guide to Sponsoring Foreign Employees in UAE Mainland: Requirements, Process & Compliance
Last updated: March 17, 2025
Once you've successfully established your mainland business in the UAE and obtained your commercial license, your next critical step is building your team. For most UAE businesses, this means sponsoring foreign employees through a structured process governed by specific regulations.
This comprehensive guide explains the key requirements, procedures, and compliance considerations for sponsoring international talent to work legally in your UAE mainland company.
Table of Contents
Understanding Employee Sponsorship in the UAE
Key Regulatory Authorities
Prerequisites for Employee Sponsorship
UAE Employment Contract Requirements
Step-by-Step Sponsorship Process
Documentation Requirements
Employee Quota Systems
Costs and Financial Obligations
Compliance Considerations
Frequently Asked Questions
Understanding Employee Sponsorship in the UAE
Employee sponsorship in the UAE mainland refers to the legal relationship established between an employer (sponsor) and a foreign employee. As the sponsor, your company assumes legal responsibility for the employee's residence and work status in the country.
Key Sponsorship Principles
Employer as Legal Sponsor: Only licensed mainland companies can sponsor foreign employees
Regulatory Oversight: Multiple government entities regulate the sponsorship process
Skill-Based Approval: Work permits are granted based on the employee's qualifications and the UAE's workforce needs
Contractual Foundation: Standardized employment contracts form the legal basis of employment
Quota Limitations: Companies can sponsor a specific number of employees based on various factors
Key Regulatory Authorities
The employee sponsorship process involves coordination with several government entities:
Federal Authorities
Ministry of Human Resources and Emiratisation (MOHRE): The primary federal authority overseeing labor relations, issuing work permits, and regulating employment contracts
Federal Authority for Identity, Citizenship, Customs and Port Security (ICP): Handles immigration-related matters including residency permits
Emirate-Level Authorities
The General Directorate of Residency and Foreigners Affairs (GDRFA) in each emirate processes residence visa applications:
GDRFA Abu Dhabi
GDRFA Dubai
GDRFA Sharjah
GDRFA Ajman
GDRFA Umm Al Quwain
GDRFA Ras Al Khaimah
GDRFA Fujairah
Working with each authority requires understanding their specific requirements and procedures, which may vary slightly between emirates.
Prerequisites for Employee Sponsorship
Before sponsoring employees, your company must meet certain criteria and prepare specific elements:
Company Requirements
Valid Trade License: Your company must have an active commercial license
Physical Office: Verified business premises appropriate to your license type
eSignature Card: Digital authentication for MOHRE transactions
Establishment Card: Also known as a "firm card" issued by the relevant GDRFA
Employee Eligibility Criteria
MOHRE evaluates potential employees based on:
Professional Qualifications: The employee must possess skills or academic qualifications needed in the UAE
Legal Entry Status: The employee must have lawfully entered the country
Local Talent Assessment: Verification that the position cannot be filled by a UAE national
UAE Employment Contract Requirements
The UAE has introduced stringent requirements for employment contracts to protect both employers and employees:
Standardized Contract Framework
Unified Contract Template: MOHRE requires the use of standardized employment contracts
Employment Offer Stage: An official employment offer must be issued before the work permit application
Bilateral Agreement: Both employer and employee must sign the offer document
MOHRE Registration: The signed offer must be registered with MOHRE before proceeding with visa applications
Contract Additions and Modifications
Additional clauses may be added to the standard contract only if they:
Comply with MOHRE legal requirements
Do not conflict with existing clauses in the standard contract
Receive explicit MOHRE approval
Multilingual Contract Options
To ensure employee understanding, contracts are available in 11 languages including:
Arabic
English
Hindi
Urdu
Bengali
Chinese
Nepalese
Filipino
And others
Compliance Note
Employers who fail to ensure employees understand contract annexes before signing may face penalties of AED 20,000 for submitting incorrect data to MOHRE.
Step-by-Step Sponsorship Process
Sponsoring an employee in the UAE mainland involves a two-phase process:
Phase 1: Work Permit Application (MOHRE)
eSignature Acquisition:
Apply for your company's eSignature card through MOHRE
Submit required company documentation
Undergo inspection of business premises
Receive eSignature authentication
Employment Offer Issuance:
Create the employment offer using MOHRE's standard template
Include all required terms and conditions
Have both parties sign the offer document
Register the offer with MOHRE
Preliminary Work Permit Application:
Submit application through MOHRE's online portal using your eSignature
Upload required documentation
Pay applicable fees
Receive preliminary approval
Phase 2: Residency Visa Application (GDRFA)
Entry Permit Processing:
Apply for entry permit (if employee is outside UAE)
Receive electronic entry permit
Ensure employee enters UAE using this permit
Medical Fitness Testing:
Schedule employee's medical examination at approved health centers
Obtain medical fitness certificate
Complete Emirates ID application
Residency Stamp Issuance:
Submit residency application to GDRFA
Complete biometric capture
Pay residency fees
Receive residency stamp in employee's passport
Labor Card Finalization:
Return to MOHRE portal to complete work permit
Download electronic labor card
Process completed
Documentation Requirements
Prepare the following documents for a smooth sponsorship process:
Company Documents
Trade license copy
eSignature card
Establishment card (from GDRFA)
Office lease agreement (Ejari/Tawtheeq)
Company profile or activity details
Employee Documents
Passport copy (valid for at least 6 months)
Recent color photograph with white background
Academic certificates/professional qualifications
Professional licenses (for regulated professions)
Previous employment certificates
Completed and signed job offer/employment contract
Special Documentation for Regulated Professions
Certain professions require additional approval from regulatory bodies:
Healthcare Professionals: Approval from health authorities
Education Professionals: Approval from education authorities
Legal Professionals: Approval from justice departments
Engineers: Approval from relevant municipalities or engineering bodies
All academic certificates and professional qualifications must be:
Attested by the UAE Embassy in the country of issuance
Further authenticated by the UAE Ministry of Foreign Affairs and International Cooperation
Employee Quota Systems
The number of employees you can sponsor depends on your company's approved quota:
Quota Determination Factors
Company Legal Form: Different structures have different allocation frameworks
Office Space Size: Physical premises size impacts employee capacity
Business Activity: Nature of business affects staffing requirements
Operational Needs: Demonstrated business requirements
eQuota System
As of 2022, the UAE has implemented an electronic quota system based on Cabinet Resolution No. 203:
Dynamic Allocation: Quotas are determined through an automated classification system
Business Classification: Companies are categorized into tiers affecting quota allocation
Compliance History: Previous labor violations may impact quota assignments
Emiratization Commitment: Meeting nationalization targets can increase available quotas
Quota Adjustment Process
You can request a quota increase by:
Submitting an application through MOHRE's portal
Providing business justification for additional staff
Demonstrating compliance with current regulations
Undergoing additional premises inspection if necessary
Costs and Financial Obligations
Sponsoring employees involves several financial commitments:
Government Fees
eSignature Card: Approximately AED 2,000 (valid for 2 years)
Establishment Card: AED 1,000-2,000 depending on the emirate
Work Permit Application: AED 300-500
Employment Entry Permit: AED 1,500-3,000
Medical Testing: AED 250-750 depending on gender and emirate
Emirates ID: AED 100-370 depending on validity period
Visa Stamping: AED 460-600 depending on the emirate
Labor Card: AED 500-700
Bank Guarantee
Mandatory Deposit: AED 3,000 per employee
Purpose: Financial security for employee rights
Refundable: Returnable upon proper visa cancellation
Special Cases: Certain company categories may be exempt
Insurance Requirements
Health Insurance: Mandatory for all sponsored employees
End of Service Benefits: Calculate and provide gratuity payments
Common Compliance Pitfalls
Delayed Renewals: Failing to renew visas and permits on time
Unauthorized Work: Allowing employees to begin work before receiving proper documentation
Contract Violations: Changing terms of employment without proper documentation
Documentation Gaps: Incomplete or outdated employee records
Insurance Lapses: Insufficient health insurance coverage
Penalties for Non-Compliance
Violations of sponsorship regulations can result in:
Financial penalties (up to AED 50,000 per violation)
Company classification downgrades
Quota reductions
Blacklisting from future sponsorship applications
Business license suspension
Frequently Asked Questions
Can an employee start working based on preliminary approval?
No. Despite receiving preliminary work permit approval from MOHRE, an employee can only legally begin working after obtaining the residency visa stamp in their passport. Working before completing the full process is considered a violation subject to penalties.
Who bears the cost of employment sponsorship?
The employer is legally required to bear all costs associated with employee sponsorship. No employer is permitted to deduct visa fees, work permit costs, or any related expenses from an employee's salary.
How long is the work permit valid?
Initial work permits are valid for 60 days, during which the employer must complete all remaining steps including medical testing, Emirates ID application, and residency stamp issuance. If these steps are not completed within the 60-day window, the work permit is automatically canceled, requiring a new application.
Can I sponsor employees if I have labor violations?
Labor violations may significantly impact your ability to sponsor new employees. MOHRE considers compliance history when approving new work permits and allocating quotas. Resolving any existing violations should be prioritized before attempting to sponsor additional employees.
What happens if an employee fails the medical test?
If an employee fails the medical fitness test due to certain conditions, the preliminary work permit will be canceled. The employee may need to leave the country, depending on their current visa status. Some conditions may be eligible for exemptions or additional testing.
How soon can a new employee transfer their visa to my company?
For employees already in the UAE, the ability to transfer sponsorship depends on their current visa status, employment contract type, and other factors. Recent regulatory changes have made transfers more flexible, but specific conditions apply based on the employee's situation.
Can I recover the bank guarantee when an employee leaves?
Yes, the AED 3,000 bank guarantee is refundable when you properly cancel the employee's visa and labor card. It's important to follow the formal cancellation process through both MOHRE and GDRFA to ensure the guarantee can be recovered.
Streamlining Your Employee Sponsorship Process
Navigating the UAE's employee sponsorship system requires attention to detail, thorough preparation, and understanding of the regulatory landscape. While the process may seem complex, a systematic approach can help ensure smooth onboarding of your international talent.
For businesses looking to minimize administrative burden and ensure full compliance, professional PRO (Public Relations Officer) services can manage the entire sponsorship process from initial work permit application through to residency visa issuance.
By properly following the sponsorship procedures and maintaining ongoing compliance, your mainland UAE business can build a strong, diverse workforce while avoiding regulatory complications that could impact your operations.
Need assistance with employee sponsorship in the UAE? Our team of PRO specialists can manage the entire process for you, ensuring full compliance with all regulatory requirements. Book your free consultation today.