My company is in the UAE and I want to hire someone working remotely from their own country — how do I structure the contract?
My company is in the UAE and I want to hire someone working remotely from their own country — how do I structure the contract?
The first accounting and legal decision to make before anything else is: is this person effectively an employee of the company (receiving direct instructions, working fixed hours, using company tools), or an independent contractor delivering a defined scope of service? That distinction isn't cosmetic — if you treat them as a contractor while the real relationship is employment, you're exposed to a reclassification risk from authorities in their own country, which can carry retroactive tax or social-insurance obligations.
The second risk many companies overlook is the possibility of creating a permanent establishment for the UAE company in the employee's country — meaning that having an employee continuously carrying out core business activities there can trigger a tax obligation for the company in that other country, even though it's formally based only in the UAE. This risk is typically managed by carefully scoping the employee's duties, or by engaging a local Employer of Record in their country instead of contracting directly. RASEEKH helps you set up the right structure and contract from the start, so international growth doesn't come back with a tax surprise.