ArcHR

ArcHR

HR and Payroll Software for F&B and Hospitality Businesses in UAE.

WPS Salary Information File (SIF) export. End of service gratuity (EOSB) — Federal Decree-Law No. 33 of 2021. Overtime, shift attendance, and EOSB — handled. WPS file ready at month-end.

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ArcHR HR dashboard overview
UAE F&B employers must pay salaries through WPS, calculate split-shift overtime at Article 65 premium rates, and accrue end-of-service gratuity on basic salary only — excluding tips and service charges. Restaurants and hotels face among the highest staff turnover in the private sector, making continuous EOSB tracking essential. Mandatory DHA or DoH health insurance applies to every employee. Multi-outlet operators need consolidated attendance, leave, and visa renewal workflows before peak tourism and Ramadan seasons.

· by ArcHR Compliance Team

🇦🇪 UAEWPS — Wage Protection System

WPS Salary Information File (SIF) export. End of service gratuity (EOSB) — Federal Decree-Law No. 33 of 2021. Overtime, shift attendance, and EOSB — handled. WPS file ready at month-end.

ArcHR is built for UAE f&b and hospitality businesses with 5 to 200 employees — Shift-based, predominantly South and Southeast Asian workforce with high monthly turnover — restaurant, kitchen, service, and front-desk roles.

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ArcHR HR dashboard overview

Shift and split-shift overtime calculation — Article 65 UAE Labour Law

High staff turnover creates constant EOSB settlement requirements

WPS compliance for tip-inclusive salary structures is complex

Mass visa renewals for kitchen and service staff overwhelm manual document tracking

Compliance scenarios

Split-shift overtime for restaurant and hotel kitchen staff

A Dubai restaurant group runs lunch and dinner services with split shifts — kitchen staff clock in at 10am, break for three hours, and return for the evening service until midnight. Article 65 of UAE Labour Law requires 25% overtime premium for hours beyond the standard workday and 50% for public holiday work. Managers approving extra prep hours on paper timesheets routinely underpay overtime or miss it entirely in WPS runs. ArcHR configures split-shift schedules per outlet, calculates overtime from mobile attendance data, and includes premium pay in the monthly SIF file so MOHRE records match actual compensation.

Continuous EOSB liability from 40% annual hospitality turnover

F&B businesses in UAE tourism corridors experience among the highest staff turnover in the private sector. A 30-seat café hiring two new kitchen staff monthly accumulates end-of-service settlements year-round, each requiring gratuity on basic salary, leave encashment, and notice-period pay within 14 days. Owners who delay EOSB calculations until exit day face employee complaints and MOHRE mediation. ArcHR displays running gratuity accrual per employee, generates final settlement breakdowns at offboarding, and ensures WPS final payments include all statutory components before the employee signs release.

Mass visa renewals for service and kitchen teams before peak season

Hotels and restaurants in Dubai and Abu Dhabi renew dozens of employment visas before winter tourism peaks and Ramadan dining seasons. A single expired labour card blocks WPS transfers and can result in AED 5,000+ MOHRE fines per violation. HR coordinators tracking renewals in WhatsApp groups lose visibility when staff rotate between outlets. ArcHR centralises passport, visa, and Emirates ID expiry for every front-of-house and kitchen employee, sends tiered alerts at 60 and 30 days, and lets multi-outlet operators filter document status by branch.

SME example

Spice Route Restaurants operates four outlets in Dubai with 85 kitchen and service staff on rotating shifts. Their previous Excel payroll missed overtime on split shifts twice in six months, triggering employee complaints. After adopting ArcHR, outlet managers use mobile attendance with shift templates, overtime calculates automatically at Article 65 rates, and WPS SIF files export validated before each bank run. Three employee exits last quarter settled with accurate EOSB — no MOHRE mediation required.

Workforce profile

Shift-based, predominantly South and Southeast Asian workforce with high monthly turnover — restaurant, kitchen, service, and front-desk roles.

Overtime, shift attendance, and EOSB — handled. WPS file ready at month-end.

40%

average annual turnover

across markets hospitality — gratuity liability is continuous

6 hrs

Ramadan daily limit

for Muslim employees in KSA — managed automatically in ArcHR

Frequently asked questions

How does ArcHR handle overtime for restaurant and hotel staff in UAE?

ArcHR calculates overtime based on Article 65 of UAE Labour Law: 25% premium for regular overtime hours, 50% premium for overtime on public holidays. Split-shift and non-standard hour structures are configurable per employee.

Is UAE gratuity applicable to part-time F&B staff?

Under Federal Decree-Law No. 33 of 2021, part-time employees are entitled to end of service gratuity on a pro-rated basis. ArcHR tracks service duration for all employment types.

Are service charges paid to F&B staff included in UAE gratuity calculation?

End-of-service gratuity is calculated on basic salary only under Federal Decree-Law No. 33. Service charges, tips, and performance bonuses are excluded from the EOSB base. ArcHR separates these components in payroll configuration so gratuity accrual remains accurate even when service charges fluctuate monthly.

How do UAE hotels manage leave for seasonal hospitality staff?

Seasonal and probationary hospitality workers accrue leave at reduced rates — two days per month during the first year of service. ArcHR supports pro-rata leave policies per employment type, preventing overpayment at termination when high-turnover hotels cycle through temporary event and tourism-season hires.

Can restaurant employees in UAE use mobile attendance without a fixed location?

Yes. ArcHR mobile attendance supports geo-fenced check-in at each outlet plus a manager override for catering events at external venues. Clock-in data feeds directly into overtime calculation and WPS payroll, replacing paper registers that inspectors frequently find incomplete during MOHRE visits.

What WPS penalties do F&B businesses face for late salary payment in UAE?

MOHRE imposes fines when salaries are not transferred within seven days of the due date declared in employment contracts. Repeat violations can affect company classification and block new work permit applications. ArcHR payroll cut-off reminders and pre-validated SIF export help F&B operators meet monthly WPS deadlines across multiple outlets.

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