Questions & Answers
Labor regulations for a UAE employee working in another country
Hi,
I need some help in understanding Dubai employment laws in hiring expatriates. We are an Indian based parent company, and we have a legal subsidiary in Dubai.
Lately, we are exploring the South African market and we would like to hire a local person in South Africa. However, We don’t have a legal entity in South Africa.
We are exploring an option where an employee can be governed by Dubai payroll but he/ she will be delegated to South Africa (Employee will get benefited in this case as he/ she gets ESOPS/ RSUS as we have a legal entity here in Dubai).
I have following questions:
- Is it a smooth option to explore? (If we want to make a South African national as Dubai entity employee but delegated to South Africa).
- What's the detailed process to put him/ her on the payroll (Visa, registration...etc.).
I highly appreciate your inputs in this regard.
Hello,
Firstly, I appreciate your decision to consult the legal wing before rushing to the execution. It is very important to put the relationship between employer and employee in a fair way to avoid the future complications within the organization.
You can recruit the employee for your company in the UAE, but as I felt from your query, you need a staff to act more as an employee for the growth of the company in the UAE and South Africa.
We need to structure the company/ staff relation from the requirement angle to reach the expected result.
Feel free to reach me at 0527520742(Call/ Whatsapp).
Dear Questioner,
First of all, I would like that you clarify what do you mean by the abbreviations mentioned in your message "ESOPS/RSUS"?
Second, hiring an employee to work through the company in Dubai and to cover markets in other countries like South Africa as you mentioned above is possible.
However, you should get further consultations on this point from a lawyer practising in South Africa who would be aware of the legal limitations of visiting employees doing business there.
Mainly because we do not know the nature of the work you mention above as it depends on the profession, nature of practice, working hours, working sites, etc...
To answer your questions:
- Hiring an expat from South Africa to work in Dubai could make it a lot easier as he will know the market and have no restriction to access South Africa whenever he needs.
But in terms of his ability to work there, again you should consult a South African lawyer. From the Dubai legal perspective, there would be absolutely no problem.
- The process is as simple as hiring him in Dubai. So, an Employment Contract should be in place plus having the Work and Residency Permit.
In case you would like to have a session to understand more and ask more questions regarding the UAE Labor law, please let us know and we can arrange such meeting for you with one of our experienced consultants.
Best regards,
Ahmed Elnaggar
ae@elnaggarlegal.com
