8 Benefits of PEO (Professional Employer Organization) in Dubai, UAE

After the trend of the remote working model all over the globe in UAE, the demand for HR outsourcing services has risen. Remote work requires close management and compliance of HR functions across multiple states and countries. In this scenario partnering with a PEO or EOR company can be one of the wisest choices businesses may make.

It is a conventional practice by companies to fully outsource these administrative HR tasks to a PEO payroll company but modern technology has also enabled many companies to automate PEOs to keep their crucial information in-house while benefiting from advisory services, saving time, and other services a PEO and EOR provide.

Definition of Professional Employer Organization (PEO)

PEO is the acronym for Professional Employer Organization. As the name suggests, it is a third-party entity that undertakes few or all of the employment responsibilities for your company on your behalf.

PEO or Professional Employer Organization works in a co-employment relationship with a company, mostly small and medium-sized organizations, to provide payroll outsourcing services such as benefits, employee wages, and other administrative HR functions. A PEO generally takes care of payroll, employee benefits, and managing labor services in compliance with labor and employment laws.

Also read: Difference between EOR and PEO Companies

Here Are the 8 Benefits of PEO (Professional Employer Organization) in Dubai, UAE

Partnering with a PEO gives a great deal of saving money. From saving time and cost to having great peace of mind, there is so much that a PEO can benefit a company from. Here are some areas where a company can save money through the services of a PEO:

  1. HR Benefits
  2. Payroll
  3. Lawsuits
  4. Retirement Plans
  5. Employee Wages and Compensation
  6. Employment Compliances
  7. Hiring and Recruitment
  8. Peace of Mind

HR Benefits

When you are running a company, it should be your primary goal to keep your employees happy and content. To do so, you must have the plan to offer benefits to your employees leading them to stay loyal to your company. Benefits can be overwhelmingly expensive for your company’s cost which is why PEO can be a cost-effective option for you. As a co-employer, the PEO will be responsible for providing your staff with a wide range of benefits such as medical and dental coverage, healthcare insurance, and life and disability coverage.


Partnering with a PEO may greatly reduce your payroll processing and accounting costs. It is always best to choose a PEO that charges you an upfront simple fee rather than someone who charges separately for payroll services. A reputed PEO will provide you with the best deal on payroll outsourcing services so that you can focus on bigger decisions leading your company toward growth.


Keeping your employees happy is an easy and difficult task at the same time. While a happy employee can give you a fortune, a disappointed one can cost you billions too. In UAE the employment laws are very strict and even a single lawsuit by an employee can devastate your reputation for good. A top-tier PEO can negotiate and support on your behalf in the case of such a scenario and may also assure that none of such unpleasant incidents take place.

Retirement Plans

Following the employee benefits, a PEO will also be responsible for offering an attractive retirement plan for your employees. Besides the cost-saving, it will also help you to retain your best talent resources and keep their loyalty towards your company intact.

Employee Wages and Compensation

Providing employees with their wages and compensation is one of the basic services most PEOs have to offer. It releases you from the hassle of managing staff’s payroll and salary disbursement procedures. PEOs automate the wages disbursement where you can also have access to ensure the wages are timely paid.

Employment Compliances

Starting up a business in a new country can be overwhelming especially when it comes to understanding the laws and regulations of trade and employment in the country. Co-working with a PEO payroll company helps businesses comply with the laws and employment legalities to prevent them from being charged any kind of penalties and fines.

Hiring and Recruitment

A good PEO payroll company also allows companies to take charge of the entire recruitment process starting from shortlisting of candidates to getting them on board. This becomes a great advantage for businesses to save time and effort especially if the business is entering a new market.

Peace of Mind

The main idea of partnering with a PEO is to outsource the administrative and other HR functions to an entity you can trust so that you save the time and effort to invest in the strategic planning of your business. Co-employing with a PEO gives companies peace of mind and ample time to create long-term strategies for the welfare of their business.

Read also: How EOR companies and PEOs help businesses?

Partner With a Reputed PEO Payroll Company to Make Your Business Grow Fast in Dubai

Payroll Middle East is a reputed company in the Middle East that provides payroll outsourcing services. Our team of experienced professionals and consultants is based in all regions of the Middle East. Through sheer commitment and client-friendly relationships, we at Payroll Middle East have a proven track record of success and growth for the clients. If you are a startup in Dubai or a medium-sized company looking for the right entity to take charge of your HR in the long run, contact us today and get a free quote!