More than a year has passed since the World Health Organization declared Covid-19 a pandemic. Hundreds of millions of people have made the abrupt shift to working from home, have changed office locations and have strategically analyzed the importance of the physical office.
Since then, the world has gone through changes and adjustments in relation to the labor market and matters related to free zones, office location, remote work, office adaptation, relocation, visas and mobility. In this sense, many companies have taken a strategic approach to choosing their office location or relocating to a more convenient area. In this case, we highlight the importance of considering office locations in the UAE, which offers promising financial rewards for investors.
In the UAE, there are two attractive areas: mainland and free zone. But why do some employees prefer to work under the free zone entity, not the mainland entity in the UAE?
It’s because the laws that are applicable to free zone employees state the following:
- Those working in free zones are generally not governed by the UAE Labor Law. Each free zone authority has its own employment laws and employees are subject to the rules and regulations of their respective free zone authority.
- Employees are under a contract with the respective free zone authority. The provisions set out in the employment contract must be compliant with the Labor Law.
- Free zone employees are sponsored by the respective free zone authority and not by their employer.
- The Ministry receives labor complaints from free zone employees and works with all parties to settle the dispute. The party filing the complaint must have a letter issued from the free zone area within 10 working days, and employees outside the country can also file a labor complaint.
Another common question is how can you establish your company in the UAE free zone?
You do not need to sponsor a “local citizen” to establish your own entity. Your company can apply for a work permit and residence visa for an existing employee from the respective free zone authority.
You must also consider the free zone authority’s regulations for visa approvals. Most free zone authorities impose a quota or limit on the number of visas that it can issue to each business. However, companies can increase their visa quota by either moving to bigger offices – leased or owned – or by applying for a higher visa quota.
These business and regulatory factors make the UAE free zone a favorable location to establish your business.
About Elements Global Services:
Elements Global Services is a global tech firm, focused on software that is built to go beyond country borders and simplify a company’s ability to Expand their Business, Onboard Employees, Manage Compliance and Pay Globally. Visit elementsgs.com, LinkedIn or Twitter for more information.