Recruitment ERP Consultant, UAE

Manpower supply and recruitment: two models, one ledger

In the Emirates, the word recruitment covers two quite different businesses. A manpower supply company sponsors workers on its own visas and supplies them to clients, typically billing monthly per head or per hour. A recruitment agency finds candidates that the client then employs on the client's own visa, and earns a placement fee. Licensing for each activity is set by the relevant authorities and differs between mainland and free zone setups, so the activities your license allows should be confirmed with your advisor before the system is designed.

The process maps look like this in words:

• Manpower supply: client contract and rate schedule -> worker sourced locally or from abroad -> visa, medical and Emirates ID processed -> worker deployed -> monthly attendance confirmed by the client -> salary paid through WPS -> client invoiced -> payment collected -> worker redeployed or released.
• Recruitment: client mandate and fee terms -> shortlist -> interviews -> offer -> joining -> fee invoice -> replacement period tracked.

The two models have opposite risk profiles. Manpower supply ties up cash and carries workers between contracts; recruitment carries little cost but depends on joining dates. I keep them as separate business lines in the chart of accounts and reports. Module scope for agencies everywhere is described on the recruitment industry page.

Visa sponsorship costs and the true margin per worker

A sponsored worker costs money before they earn any. Visa and permit fees, medical testing, Emirates ID, health insurance, sometimes air tickets, accommodation and transport for blue-collar staff, and the end-of-service benefit accruing in the background: all of it sits behind the monthly rate charged to the client. When these costs are booked as general overheads, every contract looks profitable.

I define a cost model in which:

• each one-off cost, such as visa processing, is recorded against the worker and spread over an expected deployment period agreed with finance
• recurring costs, such as accommodation and insurance, are allocated monthly to the worker and the contract they are working on
• gratuity is accrued per worker according to the policy your advisor confirms
• costs recoverable from a client under the contract are flagged so they are actually billed

The result is a margin per worker and per client contract that includes everything, not just salary against rate. It also shows the price of the bench: workers still on the company visa but not deployed. That bench figure is rarely visible in a typical management pack. These cost rules come out of the business analysis stage, before any configuration.

WPS salaries before client payment: managing the gap

Salaries for sponsored workers must be paid on time through the Wage Protection System, whatever the client's payment behavior. Clients, particularly larger contractors and facility operators, often pay on longer terms or hold invoices until attendance is reconciled. A manpower company with fast headcount growth can be profitable and short of cash at the same time.

The back office cannot remove that gap, but it can stop making it worse. Requirements I typically set:

• one approved attendance record per worker per month that feeds both the WPS file and the client invoice
• invoices issued as soon as attendance is approved, not after payroll is closed
• disputed days tracked as a separate status so the undisputed part of the invoice can be issued
• a cash view of upcoming salary runs against expected client collections, by contract

Payroll itself may run in the ERP, in an HR system or with a payroll provider. Either way, the salary file and the invoice should come from the same approved data. The HR-side records, such as document expiry tracking, are covered on my Zoho People UAE page, and are kept out of this page.

VAT invoicing, contracts and choosing a platform

Manpower invoices in the UAE are usually subject to VAT, and the invoice must carry the details the Federal Tax Authority requires. Your tax advisor confirms treatment for special cases, such as recharged costs or clients in designated zones. With the national e-invoicing program on the horizon, each vendor on the shortlist should explain its intended approach in writing; readiness should never be taken for granted. Many clients also expect invoices in both Arabic and English, with the worker list attached.

When choosing systems, manpower firms often weigh a general ERP against software built for the sector. I test both with your own scenarios: a worker moved between two clients mid-month, an overtime-heavy site, a worker who absconds or resigns during probation, and a recruitment fee replaced under guarantee. A general ERP gives stronger accounting and group reporting; specialist tools may handle deployment and attendance with less configuration.

Migration focuses on active workers with their visa cost balances, gratuity to date, open client invoices and contracts still running. I work remotely, with sessions held during UAE business hours and recordings for site supervisors. For corporate tax and group structure questions, see ERP consulting in the UAE, or start from the Emirates overview.