Hiring Abroad: Local Staff and Posted Employees

Overview

Employment compliance spans labour law, immigration and social security. Hiring without a local entity, or letting staff work on the wrong visa, can bring penalties and tax exposure.

Key concepts

• Employing entity: local subsidiary, branch or an employer of record (EOR).
• Work permit: required for foreign staff; categories usually depend on role, salary and qualifications.
• Localisation quotas: some Gulf states require a share of nationals in the workforce.
• Social security: obligations may differ for local and foreign employees.

Steps

1. Choose the employing entity; compare EOR with your own entity on cost and control.
2. Confirm the work permit type and eligibility for each role.
3. Check localisation ratios and quotas.
4. Draft contracts under local labour law (hours, leave, probation, termination).
5. Register for social security and payroll tax withholding.
6. For posted staff, also consider personal tax residence and double social security contributions.

Documents

• Employer registration and licence
• Employee passports, degrees and work references (often legalised)
• Employment contracts and job descriptions

Common limitations

• Some roles require local job advertising first.
• Business visas generally do not permit employment.

Practical notes

Work permit and social security overviews are in Compare · Employment.

Official resources

Labour and immigration authority links are in each handbook’s Employment and Official Resources chapters.