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Ras al Khaimah, UAE

Can we appoint outsourced employees to act as our employees?

I have an investment consultancy in RAK free zone, and I have outsourced our Sales & Marketing activities to another company in the same free zone.

The staff of the outsourced company then go in the field as our Marketing Director and Business Development Director - carrying our company’s business cards - and meet clients and prospects.

I want to know if this is legally acceptable, since although it is an outsourced arrangement the people in the field are not on our 'employment' as we do not sponsor them through our company (even though they are legal residents in the UAE with Emirates ID cards).

So appreciate clarity in this regard with respect to applicable employment, residency... etc, rules and regulations.

Thanks.

Mohamed Al Marzooqi Advocates & Legal Consultancy
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4 Mar 2018, 05:28

Dear Sir,

As you mentioned they are not your employees and they are working for you, so it is an illegal practice. You may be fined and employees can be deported.

In addition, since you mentioned you are based in a free zone, therefore, you can't legally sell your product directly in the mainland by your employees also.

You have to assign an agent, which needs to be a fully Emirati or GCC person owned company.

For further detail please contact on 0557409575.

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