Labor Card Processing: Complete Step-by-Step Guide
Everything You Need to Know About UAE Labor Card Processing in 2025
Labor card processing is a critical requirement for any business operating in the United Arab Emirates that employs foreign workers. A labor card, also known as a work permit, is an official document issued by the Ministry of Human Resources and Emiratisation (MOHRE) that authorizes a foreign national to work legally in the UAE. Without this essential document, neither the employer nor the employee can maintain a lawful employment relationship.
The labor card serves as proof that an employee has been officially registered with MOHRE and is legally permitted to work for a specific employer in a designated position. This document contains vital information including the employee's name, passport details, job title, salary, and the employer's information. It forms the backbone of UAE's employment regulatory framework and ensures that both employers and employees are protected under UAE labor law.
In this comprehensive guide, we'll walk you through every aspect of labor card processing, from understanding the requirements and documentation to navigating the application process and understanding associated costs. Whether you're a business owner hiring your first employee or an HR professional managing multiple applications, this guide will provide you with the knowledge needed to successfully process labor cards in the UAE.
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Table of Contents
- 1. What is a Labor Card?
- 2. Why is Labor Card Processing Important?
- 3. Types of Labor Cards in UAE
- 4. Requirements for Labor Card Processing
- 5. Step-by-Step Labor Card Processing Guide
- 6. Processing Timeline
- 7. Labor Card Processing Costs
- 8. Common Mistakes to Avoid
- 9. Labor Card Renewal Process
- 10. Labor Card Cancellation
- 11. Frequently Asked Questions
- 12. Related Services
1. What is a Labor Card?
A labor card is an official employment document issued by the UAE Ministry of Human Resources and Emiratisation (MOHRE) that legally authorizes a foreign national to work in the United Arab Emirates. It serves as a work permit and employment contract registration, binding the employee to a specific employer and job role.
Key Features of a Labor Card:
- Legal Authorization: Grants official permission to work in the UAE
- Employment Details: Contains job title, salary, and contract terms
- Employer Binding: Links employee to specific employer and establishment
- Validity Period: Typically valid for 2 years and renewable
- Digital Access: Available through MOHRE's digital platforms
2. Why is Labor Card Processing Important?
Labor card processing is not just a bureaucratic requirement but a fundamental component of legal employment in the UAE. Understanding its importance helps businesses appreciate the need for proper compliance.
| Aspect | Importance | Consequences of Non-Compliance |
|---|---|---|
| Legal Compliance | Ensures adherence to UAE labor laws | Fines up to AED 50,000 per violation |
| Employee Protection | Safeguards worker rights and benefits | Labor disputes and legal complications |
| Business Reputation | Demonstrates professional compliance | Damage to company reputation |
| Immigration Status | Maintains legal residency | Visa cancellation and deportation |
| Banking Services | Required for salary accounts | Inability to open bank accounts |
3. Types of Labor Cards in UAE
The UAE offers different types of labor cards depending on the employment sector and location. Understanding which type applies to your situation is crucial for proper processing.
Mainland Labor Card
For companies registered under MOHRE jurisdiction in mainland UAE
Free Zone Labor Card
For employees working in designated UAE free zones
Domestic Worker Card
For household employees like maids, drivers, and nannies
Mainland vs Free Zone Labor Cards:
- Mainland Cards: Processed through MOHRE, required for businesses operating in Dubai mainland, Abu Dhabi, Sharjah, and other emirates
- Free Zone Cards: Processed through respective free zone authorities (e.g., DMCC, JAFZA, DIFC), may have different processing requirements
- Mobility: Free zone employees may face restrictions working outside their zone without proper permissions
4. Requirements for Labor Card Processing
Successful labor card processing requires careful preparation of documentation and meeting specific criteria set by MOHRE. Below is a comprehensive breakdown of requirements for both employers and employees.
Employer Requirements:
| Document | Description | Validity |
|---|---|---|
| Trade License | Valid company trade license | Must be current and active |
| Establishment Card | MOHRE establishment registration | Renewed annually |
| Visa Allocation | Approved employment visa quota | Based on business activity |
| Office Space | Tenancy contract (Ejari registered) | Valid for at least 6 months |
| Bank Account | Company bank account for WPS | Active and operational |
Employee Requirements:
| Document | Specifications |
|---|---|
| Passport Copy | Valid for at least 6 months, clear scan |
| Entry Permit Copy | Valid employment visa approval |
| Passport Size Photos | 2 recent photos with white background |
| Emirates ID Application | Submitted and processed |
| Medical Fitness Certificate | From approved UAE medical center |
| Educational Certificates | Attested if required by job category |
| Tenancy Contract | Proof of UAE residence (if applicable) |
⚠️ Important Notes:
- All documents must be clear, complete, and valid
- Educational certificates may require Ministry of Foreign Affairs attestation
- Medical fitness test must be completed at MOHRE-approved centers
- Salary specified must meet minimum wage requirements for the profession
- Some professions require professional licensing before labor card issuance
5. Step-by-Step Labor Card Processing Guide
Follow this detailed step-by-step process to successfully obtain a labor card for your employee. Each step is crucial and must be completed in sequence for a smooth application experience.
Establish MOHRE Registration
Before processing any labor cards, your company must be registered with MOHRE. This involves obtaining an establishment card which authorizes you to hire employees. Register through the MOHRE website or authorized typing centers, providing your trade license, tenancy contract, and other establishment documents.
Obtain Work Permit Approval
Apply for a work permit through MOHRE for the employee. This requires submitting the employee's passport copy, educational certificates (if applicable), and job offer details. MOHRE will verify that your company has available quota and that the position matches your business activities. Processing time is typically 2-3 working days.
Process Employment Visa
Once the work permit is approved, apply for the employment visa through the General Directorate of Residency and Foreigners Affairs (GDRFA). The employee can either enter UAE on this visa or change their status if already in the country on another visa type. Submit passport, work permit approval, and visa application forms.
Complete Medical Fitness Test
The employee must undergo a medical fitness examination at MOHRE-approved medical centers. This includes tests for infectious diseases, blood tests, chest X-ray, and general health screening. Results are automatically uploaded to the system and typically available within 24-48 hours.
Apply for Emirates ID
Submit the Emirates ID application through authorized typing centers or Federal Authority for Identity and Citizenship (ICP) service centers. Provide biometric data (fingerprints and photograph) and required documents. The Emirates ID is essential for labor card processing and takes 5-7 working days.
Sign Employment Contract
Prepare and sign a standard employment contract as per UAE labor law requirements. The contract must be in both Arabic and English, specifying job title, salary, allowances, working hours, leave entitlements, and other terms. Both employer and employee must sign the contract before MOHRE submission.
Submit Labor Contract to MOHRE
Upload the signed employment contract to MOHRE's online portal along with all supporting documents. Ensure the contract details match the work permit information. Pay the required government fees through the online payment gateway. MOHRE will review and approve the contract within 2-3 working days.
Register for Wage Protection System (WPS)
Enroll the employee in the WPS system which is mandatory for salary payments. Provide the employee's labor contract details, bank account information, and salary structure. This ensures transparent and timely salary payments through approved financial institutions.
Obtain Labor Card
Once all previous steps are completed and approved, the labor card will be automatically generated in MOHRE's system. You can download a digital copy from the MOHRE portal or mobile app. The physical card (if required) can be collected from MOHRE service centers or delivered through authorized channels.
Complete Residence Visa Stamping
Finally, complete the residence visa stamping in the employee's passport at GDRFA offices or authorized typing centers. This step makes the employment visa official and must be completed within 60 days of visa issuance. Submit the passport, Emirates ID, and labor card details for stamping.
6. Processing Timeline
Understanding the typical timeline for labor card processing helps you plan your hiring process effectively. Below is a realistic breakdown of timeframes for each stage.
| Process Stage | Estimated Time | Can be Expedited? |
|---|---|---|
| Work Permit Approval | 2-3 working days | No |
| Employment Visa Processing | 3-5 working days | Yes (express service available) |
| Medical Fitness Test | 1-2 working days | Same-day service available |
| Emirates ID Application | 5-7 working days | Yes (urgent service available) |
| Labor Contract Approval | 2-3 working days | No |
| Labor Card Issuance | 1-2 working days | No |
| Residence Visa Stamping | 1-2 working days | Same-day service available |
| Total Processing Time | 15-25 working days | Can be reduced to 10-12 days |
Factors That May Delay Processing:
- Incomplete or incorrect documentation
- Medical fitness test failure or additional tests required
- Quota limitations or establishment violations
- Public holidays and weekends
- System maintenance or technical issues
- Additional verification requirements for certain nationalities
7. Labor Card Processing Costs
Labor card processing involves various government fees and service charges. Understanding the complete cost structure helps you budget appropriately for employee onboarding.
Government Fees Breakdown (2025):
| Service | Cost (AED) | Notes |
|---|---|---|
| Work Permit Fee | 300 | Per employee, valid 2 years |
| Employment Visa Fee | 300 | Entry permit processing |
| Medical Fitness Test | 300-500 | Varies by medical center |
| Emirates ID Fee | 370 | 2-year validity + courier |
| Residence Visa Stamping | 500 | 2-year or 3-year options |
| Typing Center Fees | 200-500 | Document processing service |
| e-Channel Registration | 100 | Optional but recommended |
| Total Approximate Cost | 2,070-2,570 | Per employee, excluding insurance |
Additional Costs to Consider:
Health Insurance
Mandatory per year per employee
Professional Service Fees
If using PRO services
Security Deposit
Refundable per employee (some cases)
💡 Cost-Saving Tips:
- Process multiple employees simultaneously to negotiate better service fees
- Compare medical fitness centers for competitive pricing
- Consider annual health insurance plans for better rates
- Use MOHRE's online portals directly to minimize typing center fees
- Plan processing during off-peak periods to avoid rush fees
8. Common Mistakes to Avoid
Many businesses encounter delays and complications during labor card processing due to preventable errors. Here are the most common mistakes and how to avoid them.
| Common Mistake | Consequence | How to Avoid |
|---|---|---|
| Incomplete Documentation | Application rejection, delays | Use a checklist and verify all documents before submission |
| Incorrect Job Title | MOHRE rejection, contract mismatch | Ensure job title matches trade license activities |
| Salary Below Minimum | Labor card rejection | Verify minimum salary requirements for the profession |
| Expired Trade License | Cannot process any applications | Maintain active license and renew on time |
| Missing WPS Registration | Labor card suspension, fines | Register for WPS before hiring employees |
| Late Visa Stamping | Visa cancellation, penalties | Complete stamping within 60 days of visa issuance |
| Unattested Certificates | Application rejection for certain professions | Verify attestation requirements beforehand |
| Quota Violations | Application rejection, establishment penalties | Check available quota before initiating process |
⚠️ Critical Compliance Issues:
- Working Without Labor Card: Fines up to AED 50,000 per employee
- Contract Violations: Employee complaints can lead to establishment penalties
- Fraudulent Documents: Criminal charges and business closure
- WPS Violations: Labor card suspension and inability to hire new employees
9. Labor Card Renewal Process
Labor cards are typically valid for 2 years and must be renewed before expiration to maintain legal employment status. The renewal process is generally simpler than initial issuance but requires proper timing and documentation.
When to Renew:
- Begin renewal process 60 days before labor card expiration
- Check both labor card and residence visa expiration dates
- Ensure employment contract is still valid or prepared for renewal
- Verify company establishment card is active
Renewal Requirements:
| Requirement | Details |
|---|---|
| Valid Passport | Must have at least 6 months validity |
| Current Labor Card | Copy of existing labor card |
| Employment Contract | Renewed or updated contract if needed |
| Medical Fitness | New medical test required |
| Emirates ID Renewal | If ID is also expiring |
| No Objection Certificate | From employer confirming continued employment |
| Establishment Compliance | Company must have no outstanding violations |
Renewal Process Steps:
- Review and update employment contract if terms have changed
- Complete medical fitness examination at approved centers
- Submit renewal application through MOHRE portal
- Pay renewal fees (approximately AED 1,500-2,000)
- Wait for approval (2-5 working days)
- Download updated labor card from MOHRE system
- Process residence visa renewal through GDRFA
- Update Emirates ID if necessary
⚠️ Important Renewal Notes:
- Working with an expired labor card is illegal and carries penalties
- Employees must exit UAE if labor card expires without renewal
- Salary changes require contract amendment before renewal
- Some professions may require updated credentials or licenses
10. Labor Card Cancellation
Labor card cancellation is necessary when employment ends, whether due to resignation, termination, or employee transfer to another company. Proper cancellation is crucial to avoid legal complications for both parties.
Reasons for Labor Card Cancellation:
- Employee resignation with proper notice period
- Employment termination by employer
- Mutual agreement to end employment
- Company closure or business cessation
- Transfer to another employer (requires proper release)
- Failure to meet contract obligations
Cancellation Process:
Settle All Dues
Ensure all financial obligations are settled including final salary, end-of-service benefits, leave encashment, and any outstanding loans or advances. Obtain clearance from all departments.
Submit Cancellation Application
File labor card cancellation through MOHRE portal, specifying the reason for cancellation. Both employer and employee should agree on cancellation terms to avoid disputes.
Cancel Residence Visa
After labor card cancellation approval, cancel the residence visa through GDRFA. This is mandatory and must be done within 30 days of employment termination.
Exit or Transfer
Employee must either exit UAE within 30 days of visa cancellation or transfer to a new sponsor. Grace periods may apply based on visa type and circumstances.
Cancellation Costs:
| Service | Cost (AED) |
|---|---|
| Labor Card Cancellation | Free through MOHRE portal |
| Visa Cancellation Fee | 250-350 |
| Typing Center Fees | 100-300 |
| Emirates ID Cancellation | No fee |
⚠️ Legal Obligations:
- Notice Period: Both parties must respect contract notice periods (typically 30-90 days)
- End-of-Service Benefits: Employer must pay gratuity as per UAE labor law
- Timely Cancellation: Delayed cancellation may result in fines
- Employee Rights: Wrongful termination can lead to labor court cases
- Ban Periods: Certain circumstances may result in employment bans
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11. Frequently Asked Questions
The complete labor card processing typically takes 15-25 working days from start to finish. This includes work permit approval (2-3 days), employment visa processing (3-5 days), medical fitness test (1-2 days), Emirates ID application (5-7 days), labor contract approval (2-3 days), and residence visa stamping (1-2 days). However, expedited services are available for certain steps, which can reduce the timeline to 10-12 days. Delays may occur due to incomplete documentation, quota issues, or additional verification requirements.
The total cost for labor card processing ranges from AED 2,070 to AED 2,570 per employee, covering government fees only. This includes work permit fee (AED 300), employment visa (AED 300), medical fitness test (AED 300-500), Emirates ID (AED 370), residence visa stamping (AED 500), and typing center fees (AED 200-500). Additional costs include mandatory health insurance (AED 600-1,500 annually) and professional service fees if using PRO services (AED 1,000-2,500). Some businesses may also need to pay security deposits ranging from AED 2,000-5,000 per employee, which are typically refundable.
No, it is illegal for any foreign national to work in the UAE without a valid labor card. Working without proper authorization violates UAE labor law and immigration regulations. Employers face severe penalties including fines up to AED 50,000 per employee working illegally, potential business closure, and establishment bans. Employees working without a labor card risk deportation, immigration bans, and legal consequences. The labor card serves as official proof that employment is registered with MOHRE and complies with all legal requirements. Even during the processing period, employees should not begin work until the labor card is officially issued.
Essential documents include: from the employer side - valid trade license, establishment card, visa allocation approval, Ejari-registered tenancy contract, and company bank account for WPS. From the employee side - passport copy (valid 6+ months), entry permit copy, two passport-size photos, Emirates ID application, medical fitness certificate from approved centers, and attested educational certificates if required for the position. Additional documents may include previous employment records, professional licenses for regulated professions, and no objection certificates if transferring from another employer. All documents must be current, complete, and clearly scanned.
Labor card renewal should begin 60 days before expiration. The process involves: reviewing and updating the employment contract if needed, completing a new medical fitness examination, submitting renewal application through MOHRE portal, paying renewal fees (approximately AED 1,500-2,000), waiting 2-5 working days for approval, downloading the updated labor card, processing residence visa renewal through GDRFA, and updating Emirates ID if it's also expiring. Required documents include valid passport (6+ months validity), current labor card copy, renewed employment contract, fresh medical fitness certificate, and NOC from employer. The company must have no outstanding MOHRE violations to process renewals.
Why Choose One Desk Solution?
✓ Expert Team
Experienced PRO professionals with deep knowledge of UAE labor laws and MOHRE procedures
✓ Fast Processing
Efficient handling of all documentation and applications to minimize processing time
✓ Full Compliance
Ensure 100% compliance with UAE labor regulations and avoid costly penalties
✓ End-to-End Service
Complete support from initial consultation to labor card issuance and beyond
