HR record-keeping requirements in the United Arab Emirates
Reviewed by Mellow Editorial Team, HR & payroll content team
Employers in the UAE are legally required to maintain specific employment records for each worker and to process salaries through a regulated electronic system. Getting this right matters: Ministry of Human Resources and Emiratisation (MOHRE) inspections are routine, and gaps in documentation expose businesses to fines and disputes.
What records you must keep
Every employer must hold a written employment contract for each worker, signed by both parties. Under Federal Decree-Law No. 33/2021 (the UAE Labour Law), contracts must be in Arabic — or bilingual if the employer chooses — and a copy must be registered with MOHRE.
Beyond the contract, you should maintain:
- Personal identification records: a copy of the employee's Emirates ID, passport (including residency visa pages) and the labour card or work permit issued by MOHRE.
- Job offer and contract history: the original offer letter, any contract amendments, and records of role changes or promotions.
- Attendance and working-hours records: daily attendance logs, overtime records and records of rest-day working. These become critical evidence if a wage dispute is filed.
- Leave records: annual, sick, maternity/paternity and unpaid leave taken. Under the Labour Law, employees are entitled to 30 calendar days of paid annual leave after completing one year of service, so accurate accrual records are essential from day one.
- Disciplinary and performance records: written warnings, performance improvement plans and related correspondence.
- Payroll records: salary history, pay slips, allowances and deductions, and any documents supporting end-of-service gratuity calculations.
- Termination documentation: resignation letters, termination notices, final settlement calculations and evidence of payment.
Wage Protection System (WPS) records
Salaries for most private-sector employees must be paid through the Wage Protection System, administered by the Central Bank of the UAE. WPS creates an automatic electronic audit trail: each payroll cycle generates a Salary Information File (SIF) that is submitted to your approved WPS agent before funds are transferred.
In practice this means your WPS records — including SIF submissions and payment confirmations — form part of your statutory documentation. MOHRE can cross-reference these records against headcount and contract data at any time. Keep WPS confirmation reports alongside your internal payroll records; do not treat them as separate, disposable files.
End-of-service gratuity calculations
Gratuity documentation deserves its own category because errors here generate the most disputes. Under Federal Decree-Law No. 33/2021, expatriate employees accrue:
- 21 days' basic wage per year for each of the first five years of service.
- 30 days' basic wage per year for each subsequent year.
- The total is capped at two years' total pay.
UAE and GCC nationals enrolled in the GPSSA pension scheme do not receive gratuity from the employer in the same way, because pension contributions replace that entitlement.
To support accurate final settlement, you need continuous records of an employee's basic wage at each point in their tenure — not just their current salary. A basic wage that changed three times over eight years affects the gratuity calculation differently depending on how you have documented each period. Store payroll history in a way that allows you to reconstruct the correct figure quickly.
Retention periods
The Labour Law and associated regulations do not state a single universal retention period in the way some jurisdictions do, but standard practice — and the limitation period for labour claims — points to retaining employment records for at least two years after the employment relationship ends. Given that disputes can arise over gratuity, unpaid overtime or wrongful termination, a more cautious approach is to keep records for five years post-termination. Maintain them in a secure format, whether digital or physical, that allows retrieval on short notice.
Practical steps to stay compliant
Centralise records from day one. Create a file (digital or physical) for each employee at the point of onboarding, not retrospectively. Include every document listed above as it is generated.
Audit against your MOHRE registered headcount. Periodically check that every employee registered in your MOHRE or establishment file has a corresponding, complete record in your HR system. Discrepancies surface quickly during inspections.
Separate basic wage from total package clearly. Many disputes hinge on whether an allowance forms part of the basic wage for gratuity purposes. Your contracts and payroll records should define each component explicitly and consistently.
Ensure Arabic-language contracts are signed. Even if you operate primarily in English, the Arabic contract version is the legally operative document. Make sure employees receive it and acknowledge it in writing.
Document amendments formally. Any change to salary, role or working hours should be recorded in a signed addendum and re-registered with MOHRE where required. Verbal agreements do not hold up in a Labour Court.
If your business operates across multiple countries or employs a mix of UAE nationals and expatriates, maintaining consistent record-keeping standards becomes more complex — particularly when payroll structures, gratuity rules and pension contributions differ by nationality. How Mellow runs payroll across six countries on one platform explains how a unified system can reduce that administrative burden without creating compliance gaps.
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