About us

Labotel is a solution service provider to contractors. Innovative and intelligent, and part of Al Otaiba Enterprises Chaired by Mr. Otaiba bin Saeed Al Otaiba. Labotel not only accommodates laborers by simply giving them beds to rest and sleep but the facility itself is built, and managed to support resident laborers with far beyond the average accommodation facilities. Labotel provides inclusive solutions by design. Our solution covers all the required value-added services and facilities, Clients require to support their workforce. Labotel works to free both the contractors and the laborers alike from all domestic burdens.

Staff Accommodation VS Accommodation Allowance: Which one is more beneficial for an employer?


The labor ministry of the UAE is strict about the facilities offered to employees. As per the laws of the land, the employer must offer either staff accommodation or accommodation allowance to the employees. The labor stay provided must have dimensional specifications and facilities promulgated by the authority.

The stipulations regarding the amenities, space availability, hygienic conditions, etc deter many companies from including employee accommodation in the job offer. Instead, they opt for an accommodation allowance.

We are comparing staff accommodation with accommodation allowance in this article. The comparison should give you a better idea regarding both. That would help you select the right one if you are an employer. You may check out our labor village if you are looking for staff accommodation in Abu Dhabi. The well-facilitated, affordable, and well-connected labor village would be ideal for the stay of your team.

What is Staff Accommodation?

Companies operating in the UAE must abide by the rules and regulations issued by the authority. Firms that have more than 50 employees earning a salary up to AED 2000 must provide accommodation to their staff. Alternatively, the firms can go for an accommodation allowance. This rule has been formulated basically considering the large number of ex-pat employees working in the country. Staff accommodation in Abu Dhabi, Sharjah, and other emirates can be considered for the stay of the team. Depending on the location of the company.

The stay offered to the employees must have all the necessary amenities including grocery stores, ATMs, recreation room, prayer room, fitness center, and so on. Further, the rooms or dormitories should not accommodate more persons than authorized, as per the dimensions. All the rooms must be ventilated. The kitchen must be hygienic with cleaning and pest control methods implemented in the prescribed intervals. Garbage clearance must be undertaken by the facility management without fail.

What is Accommodation Allowance?

Accommodation allowance is the financial compensation offered to the employee in lieu of an accommodation facility. This is not included in the basic wage that is agreed upon with the employee. The accommodation allowance is negotiated separately with the employee. There are no specific guidelines from the UAE authority either. Hence, the amount may differ depending on the negotiations undertaken.

The payment including allowances like accommodation allowance, transportation allowance, telephone allowance, and flight charges is called a total wage.

Which One is Better for the Employer: Accommodation Allowance or Staff Accommodation

The expenses for staff accommodation in Abu Dhabi and other emirates would differ depending on the type of accommodation and the service provider. Labotel, the leading labor accommodation service in the UAE has been known for offering the best staff accommodation in Abu Dhabi at affordable rates. You might consider us or use our accommodation facility as the yardstick for the standard you want to offer to the team.

After evaluating the advantages and disadvantages and analyzing the relevant factors, we came to the conclusion that staff accommodation is beneficial for the firm as well as the employee. It is a win-win situation for both.

The reasons for stating staff accommodation in Abu Dhabi, or any other emirate to be better than accommodation allowance are:

  • Financial burden on the company comes down remarkably. Offering an accommodation allowance can become an expensive decision.
  • All the employees can be accommodated at a single labor village. So that they can be called without any delay, whenever the requirement arises. This would avoid the requirement of multiple transportations, besides saving time in transporting them to the work site.
  • Offering a well-facilitated staff accommodation would create a positive image of the company. It would be useful for ensuring better employee productivity.

These are the basic reasons for more firms opting for labor accommodation, instead of accommodation allowance.

Labotel has been the number one accommodation provider in Abu Dhabi for years. Our team is always at your service. You may call us to knowing more about staff accommodation in Abu Dhabi.