Human Resource (HR) and Payroll Systems in the United Arab Emirates (UAE)

The need for an effective Human Resources (HR) and Payroll System in the smooth running of business ventures of all sizes cannot be overemphasized everywhere in the world, including the United Arab Emirates (UAE).

What are Human Resource (HR) and Payroll Systems?

Human Resource (HR) and Payroll Systems refer to processes, usually computer programs/software which is used to keep track of Human Resource Management Activities including, but not limited to employees’ salaries/wages and other allowances or entitlements, worked hours, deductions and penalties, applicable taxes and remittance of such to the government, net pay, and attendance keeping. They are sometimes referred to as Human Resources Management Software or Payroll Management Software especially when in form of computer programs.

Human Resource (HR) and Payroll Systems Requirements in the United Arab Emirates (UAE)

As a business owner in the United Arab Emirates, it is very important to keep of HR and Payroll Systems as they are constantly being reviewed and amended with little or no notice to employers and not adhering to them are highly prosecutable.

Below are some of the current HR and Payroll Systems Requirements in UAE

1. UAE business must make payments from an in-country bank account
2. Employees, irrespective of nationality, are subject to United Arab Emirates’ Labor law and must be registered with the Ministry of Labor and sign a federal labor contract.
3. The maximum probation period for new employees is maximum of six (6) months.
4. Workday is 8hours and maximum of 48hours/week
5. All employees must be paid through the Wages Protection System (WPS), which is the official United Arab Emirates’ electronic salary transfer system.

Advantages of HR and Payroll Systems in the United Arab Emirates Makes business operations easier to carry out.

Using an efficient Payroll system in UAE eases the work burden of the Human Resources unit of an organization. The workload of calculations is stripped off them and are only required to input employees’’ salary and total hours due/worked while the system takes charge of the calculations. There are even some HR and Payroll Systems which are capable of helping to keep track of worked hours and general payroll management.

Easier track record of employees

HR and Payroll Systems in the United Arab Emirates do not only serve as a means of collecting data of wages, taxes, hours, leaves, allowances, and net pay; they also help with monitoring the work hours per week and resumption/closing hour of each employee.

HR and Payroll Systems in UAE also help make employee files available to the employer and employee with concise details of all activities between both parties such as education and qualifications, loans, attendance modules, gratuity, handbooks, queries and responses to them and reminders.

Other advantages include:

• Time-saving
• Reduction risk of data loss
• Reduction in cost of payroll and bookkeeping
• Reduction of calculation errors
• Improved compliance with HR and Payroll requirements

One of the extremely indispensables tool a business can invest in is an HR and Payroll System and one of the best available in UAE is FactsHCM; it is not only a means of running the business better but also a way of keeping up with business trends and demands.