Working remotely from a location has been an old practice but not very common before. Ever since the Covid-19 happened, the entire world was drastically affected. Remote work model quite rapidly took over the on-site presence of employees as one of the biggest changes after the pandemic. With technology and other advanced work methods, UAE has a fast-developing work culture with hundreds of remote work opportunities. Whether the management of a certain company is located in a certain country or not, availing services from an employer of record is one of the handiest ideas for companies to manage their workforce – whether it is remote or on location. Companies also tend to hire global employer of record as one of the best practices for onboarding contractors in UAE.
WHAT DOES AN INDEPENDENT CONTRACTOR MEAN IN PAYROLL MANAGEMENT?
Part-time employment is a very typical arrangement in the majority of the Western world. It can provide a stable income and a schedule that works for folks who have other responsibilities or who need a more flexible job.
However, part-time or short-term employment is far less typical in the UAE. In fact, until recently, it was very challenging for businesses in the UAE to legitimately hire and sponsor visas for part-time employees.
Part-time employment became a far more viable option for companies in March 2018 according to a new statutory issuance from the Ministry of Human Resources & Emiratization (MOHRE) of the United Arab Emirates. This entails that employers can hire people with more flexible contracts, and employees can work a schedule that works better for them. These part-time workers are also known as ‘contractor’ or ‘independent contractor’ in UAE. As a global payroll solution, global employer of record also onboard contractors’ payroll in order to make the contractor onboarding process easier for various international employees & contractors working for the company.
In this article, we are going to tell you about how is a contractor onboarding process carried out for businesses in UAE and what things should definitely be there on a contractor onboarding checklist or a subcontractor onboarding checklist.
WHAT ARE THE STEPS FOR INDEPENDENT CONTRACTOR ONBOARDING IN UAE?
For an effective contactor onboarding process, companies must follow the best practices for onboarding contractors in UAE. In most cases, payroll management of an independent contractor is carried out by a local employer of record or a global employer of record. To do so, here are some steps!
STEP 1 – COLLECT THE DATA OF INDEPENDENT CONTRACTORS
As any other human resource onboarding process, the first step for onboarding subcontractors or independent contractor in UAE is to collect all the necessary data of the personnel. This may include the following:
- Official Name
- Emirates ID
- Passport and Visa
- Work Permit or Labor Card
- Email address and other details for contact such as phone number
- Resume or past work references
- Bank account details
STEP 2 – SIGN THE CONTRACT LEGALLY
The next step is to carefully draft a contract between the company and the contractor which complies with the UAE’s Independent Contractor Agreement. This kind of contract and a typical employment contract differ greatly from one another. For instance, the Independent Contractor Agreement in this instance details the services the employee will render. Additionally, it will include the tasks that will be completed, the established timeframe, and the outcomes that the business anticipates.
STEP 3 – SYNCHRONIZE THE PAYMENT DETAILS WITH FINANCE TEAM
As a matter of fact, the contract must state how much will be paid to the contractor for their work. It should contain information such as the frequency of payments and whether or not they will be made in installments. Whether or not the business aims to pay the contractor through an employer of record, all the details of the payment due along with the bank account details must be shared with the concerned finance department.
STEP 4 – PROVIDE WITH THE NECESSARY RESOURCE AND EQUIPMENT
Make sure your contractor has access to all the tools and resources they will need, as well as any data and systems, before they begin their work. Don’t wait for the day when they actually start working to have everything set up; your IT team will probably be overloaded with other urgent demands by then. Along with getting their signature, you should document all of the tools and access you give your contractor. This facilitates a smooth transition out of the project or employment arrangement.
HOW CAN PAYROLL MIDDLE EAST HELP IN CONTRACTOR ONBOARDING PROCESS?
Payroll Middle East is your one-stop global payroll solution if you’re seeking for a global employer of record in Dubai or anywhere else in the UAE. Finding the best workers and independent contractor from all around the world is our area of expertise. Due to the availability of skilled workers and contractors, we offer swift services. Our main goal is to complete your job with excellent quality. Please feel free to ask our specialists for advice on the contractor onboarding process in UAE.