Employment contracts in the UAE: Which contract,
and what it has to say.

Are all UAE employment contracts fixed-term now?

Yes for the mainland private sector. Federal Decree-Law No. 33 of 2021 took effect on 2 February 2022 and admits only contracts with a definite term. A contract can be renewed or extended by agreement, and each new period is added to the first when counting continuous service (Article 8).

Contracts signed as unlimited under the old 1980 law had to be converted to fixed terms within a year of the law's start, and the Minister could extend that period (Article 68). We have not stated any later date because we could not open MOHRE's own pages to confirm one. While one remains in force, the law still applies to it, and Article 65 sets its notice at 30 days under five years' service, 60 over five and 90 over ten.

What happens when a fixed term ends?

• Both sides renew or extend it: the period is added to continuous service, for a similar or shorter term under the u.ae wording
• Both sides simply carry on: the contract is treated as extended on the same terms (Article 8), which can happen by accident if nobody watches the date
• Nobody renews it and work stops: the contract ends under Article 42, and the final settlement falls due within 14 days
• One side wants out before the end: Article 43 notice applies, as in ending employment. The articles we read set no separate payment for the unexpired term

What are the six work models?

Article 7 of the law names four and Article 5 of the Executive Regulation adds two. The Regulation lists a contract template for each in MOHRE's system, and the Minister can add others.

There is also a national student contract under Ministerial Resolution No. 240 of 2023: full-time, at least AED 4,000 a month, for one year renewable until graduation, and counted towards Emiratisation. The student then stays for at least as long as the study period.

How are part-time leave and gratuity worked out?

The Regulation uses one percentage for both: yearly contract hours divided by yearly full-time hours. Take someone contracted for 24 hours a week where full-time is 48, so 50 per cent.

The formula starts from a full-time gratuity. If your payroll holds a part-timer's reduced pay as basic, applying the percentage again would cut it twice, so settle which figure you hold and write it down.

What must a UAE employment contract state?

Article 10 of the Regulation lists what a contract includes in principle. You can add clauses to the approved template as long as they comply with the law, and any term that gives less than the law is void unless it benefits the employee (Article 65).

• Employer's name and address
• Employee's name, nationality, date of birth, proof of identity and qualifications
• Occupation, date of joining and place of work
• Working hours and rest days
• Probation period, if any, and the term of the contract
• The wage, including benefits and allowances
• Annual leave, notice period and how the contract is ended
• Anything else MOHRE requires

The basic and allowance split deserves the most attention, because overtime, gratuity and leave pay all work from it. Make two copies, one for each side (Article 8). If the terms are ever disputed, the employee can prove the contract and the wage by any means of evidence, so a missing contract does not protect the employer.

How is a contract registered with MOHRE?

• The job offer comes first, in Arabic and English, and in a third language the worker understands where needed, with the annex on the law
• The employer signs electronically, and the worker signs before the employer applies for initial approval
• The signed offer goes with the work permit application
• Both sides sign, and the contract, based on the offer, goes to MOHRE within 14 days of arrival or of the change of status

Arabic is the language of record and it prevails over a translation (Article 66). The u.ae page warns of fines of up to AED 20,000 for giving the ministry false information. The visa steps guide covers the permit and residence side.

Can a contract be changed later?

• Terms: the worker's rights can't be reduced, both sides must agree and MOHRE must approve, per the u.ae page
• Work model: both sides agree, dues from the first contract are settled and MOHRE's procedure is followed (Regulation, Article 10)
• Job: fundamentally different work needs written consent, apart from temporary emergency cover (Article 12). Otherwise the employee can leave without notice (Article 45)
• Monthly to daily, weekly, hourly or piecework pay: needs written consent (Article 24)

Which clauses need the most care?

• Probation: up to six months, once only with an employer
• Notice: 30 to 90 days, the same for both sides unless the difference favours the employee
• Non-compete: only where the job gives access to clients or secrets, limited by time, place and type of work, and at most two years after the contract ends
• Recruitment costs: the employer can't charge them to the worker, directly or indirectly (Article 6)

DIFC and ADGM use their own employment laws, so none of these model rules can be assumed there.