HR Outsourcing Services

A Human Resources (HR) department is a critical component of employee well-being in any business, no matter how small. Human Resources responsibilities include payroll, benefits, hiring, firing, and keeping up to date with local laws and legislation.

HR Solutions are the experts when it comes to outsourced HR consultancy, delivering the flexible, practical employment support that our clients require, especially if they’re just entering the UAE market.

What can the Sovereign Group HR Department do for you?

We supply a range of consultancy packages, business support functions & ad-hoc services that allow our clients to focus on setting up and managing businesses in the UAE.

Developing HR Policy and Procedures

Managing people effectively in any organisation becomes much easier with the correct HR policies and procedures in place. We can develop tailor-made HR policies that will cover all aspects of the employment lifecycle, from the early recruitment stage through to an employee’s exit. These should also always be backed up by the various HR forms required, for which we can provide templates – Leave application form, Expense claim form, Employee record, etc.

Reviewing Employment Contracts

All employees working in UAE should be doing so under a relevant labour contract that is in accordance with UAE Labour Law/ Rules and Regulations of Free Zones.  We can help draft and review offer letters, review labour contracts and ensure their compliance.

UAE Labour Law

Every corporate entity operating in the UAE is subject to UAE labour Law and must ensure maximum compliance with Labour Law regulations. We are able to assist organisations with any and all questions pertaining to this legislation including but limited to issues such as; working hours, public holidays, working hours during Ramadan, contract termination, etc. We are also able to advise on variations between Free Zone and onshore regulations, as well as respective differences between each of the Free Zones themselves. We’re also committed to timely updating our clients with regards to any changes in legislation announced by the government.

End of service calculations in UAE

Calculation of End of Service gratuity is very important and vary greatly according to the nature of an employee’s contract and the length of time served with the company, as well as whether the employee resigned themselves or was dismissed. We assist our clients in making the dismissal process as less expensive as possible.

Advising with visa procedures

Every expat employee must have a relevant, valid employment visa in order to perform their duties within an organisation legally. The Sovereign group can assist clients with visa processes in both offshore and Free Zone jurisdictions.

HR Support

HR support can be provided on an ad hoc basis, as and where required.

HR Services – FAQs

What are the mandatory elements that have to be mentioned in employment contract?

An employment contract has to specify the date on which work starts, the type of contract (limited or unlimited), designation, amount of remuneration, notice period, probation period and holiday entitlement.

What is the difference between a limited and an unlimited contract?

  • A limited employment contract is, by definition, set for a limited time and it is usually linked to the duration of the residency visa. This contract is given to employees when they are needed for a specific period.
  • An unlimited contract is valid for an indefinite period of time; though it can be terminated at any point by either the employee or the employer for various reasons under the UAE labour Law.

How is end of service gratuity calculated for a limited term contract?

An employee is entitled to EOS after one year with an organisation; however he/she is not entitled to gratuity if he/she resigns on limited contract; this privilege would only come after 5 years with an organisation. If he/she has more than five years of service, he/she would be entitled to same end of service gratuity as employee on an unlimited contract, i.e. as follows:

  • 21 days’ basic salary for each year of the first five years
  • 30 days’ basic salary for each additional year

The total amount of gratuity will not exceed two years’ pay.

How is end of service gratuity calculated for an unlimited term contract?

An employee who resigns over the course of an unlimited employment contract will be entitled to EOS as per the following calculation:

  • 7 days’ basic salary from one to three years
  • 14 days’ basic salary from three to five years
  • 21 days’ basic salary for each year of first five years (if service is longer than five years)
  • 30 days’ basic salary for each additional year (if service is longer than five years)

Calculation of EOS for terminated employees is the same as for employee terminated on limited contract:

  • 21 days’ basic salary for each year of the first five years
  • 30 days’ basic salary for each additional year

An employee is not entitled to EOS gratuity if he/she has been terminated for gross misconduct pursuant to the provisions of the UAE Labour Law.

What is a probation period?

The employee may be asked to undergo a probation period that mustn’t exceed six months. During probation period employment contract may be terminated by the employee or employer with notice period of up to 7 days.

Interested in HR Outsourcing Services?

Middle East Focus – September 2019

  • Saudi Arabia and Bahrain lead FDI inflow in Gulf region
  • DMCC partners with DED to introduce dual licensing scheme
  • DIFC introduces new Employment Law
  • RAKEZ Business Women Package – Inspiring female entrepreneurship
  • UAE relaxes foreign ownership restrictions and introduces substance requirements
  • UAE ratifies the Multilateral BEPS Convention

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Sovereign Trust (Gibraltar) Limited
Tel: +350 200 76173