Guide to Hiring Freelancers in Dubai

Hiring Freelancers in Dubai: Rights and Obligations

Freelance work forms are gaining ground in many countries around the world, and Dubai is no exception. The United Arab Emirates (UAE) has introduced new regulations allowing individuals to work independently with an official freelance permit, offering flexible working arrangements without relying on a specific employer’s sponsorship. However, many business leaders still have questions: under what legal framework can a freelancer be hired, and what are the conditions governing such work arrangements? In this post, we explore the current legal regulations to understand the nature of the relationship between a freelancer and a Dubai-based company.

What is considered freelance work in the UAE?

The United Arab Emirates’ legal system officially defines freelance work. According to Article 8 of Cabinet Resolution No. 1 of 2022, "freelance" is an independent and flexible working relationship where an individual is contracted to perform a task or provide a service for a specified period. This person is not regarded as an employee of the contracting company, and there is no traditional employment contract between them.

Individuals who do not have a valid employment contract with a specific organization or employer and wish to provide services in their name can apply for a freelance permit. This is especially important because freelance work is only legal per official regulations if the working individual has a freelance permit issued by the Ministry of Human Resources and Emiratisation (MoHRE).

What type of contract can be created between parties?

If a Dubai-based company wants to hire a freelancer for a six-month project, the work’s foundation will not be a traditional employment contract but rather a service agreement or letter of engagement. This document should detail the following sections extensively:

The precise definition of the task,

The duration of the work,

The deliverables and milestones,

The payment terms,

The liability and deadlines.

A service contract is clearly distinct from an employment relationship: there is no regular working hours, leave, sick pay, or other typical employee benefits. This is a core element of the freelancing model – it’s based on flexibility and mutually agreed upon conditions.

Can a freelancer be required to be present at the office?

One of the most common questions is whether the client can require that the freelancer regularly appear at the office. The answer: theoretically, it can be requested but not enforced. The essence of freelance work is independence. This means the freelancer decides where and when they work, as long as they meet the project’s deadline and quality standards.

If a company requests regular office attendance and sets specified working hours, it shifts the relationship towards employment. This can be legally problematic, especially if the freelancer does not have a regular employment visa, as authorities may interpret such cooperation as illegal employment.

Is a freelancer entitled to leave?

Since a freelancer is not an employee, they are not entitled to benefits under the Labor Law, such as:

No right to annual leave,

No sick leave,

No severance pay or other employment-related benefits,

No mandatory social security contributions from the employer.

This does not preclude the parties from agreeing on paid breaks or bonuses in a personal contract – these are goodwill or strategic decisions rather than legal obligations.

What happens if the worker doesn’t have a freelance permit?

This is one of the most crucial points. Work performed without an official freelance permit issued by MoHRE is considered unlawful. Both the contracting company and the freelancer assume risks, as the authorities may impose fines on both parties if it is discovered that the work is conducted outside official frameworks.

This is particularly important if the freelancer is registered in another emirate and does not have a permit to work in the specific region. The permits granted in different zones (such as free trade zones) are not always valid in mainland Dubai.

Summary

Dubai's economic model increasingly supports flexible working arrangements and independent entrepreneurs. The official framework for freelance activities is clearly outlined: they require permits and are strictly separated from employment relationships. If a Dubai-based company wishes to engage a freelancer, it’s critical to have the correct legal documentation and ensure that the freelancer holds a valid freelance permit. Service agreements offer flexibility but do not allow claims characteristic of traditional employment.

This operating model is ideal for project-based, temporary, or highly skilled tasks but requires disciplined administration and knowledge of legal structures from both parties. The UAE aims to create an open yet regulated labor market that allows for flexibility while ensuring legal certainty.

(The post is based on shared experiences and stories from readers.)