The most important features of employment contracts in the UAE

Employment Labour contracts Duration & mock-up for private firms – #1 Perfect Guider

An Employment Contract or a Labor contract is nothing but a full-time or a part-time contract and this arrangement can be temporary, remote working, flexible working, or can even a Job Sharing role.

In the country, labor law and the Ministry of Labor (MOL) UAE govern employment contracts to ensure the rights of the parties involved. The new regulations complement the previous rights, although they also reinforce the duties of each party.

In this article, you will learn about the rules governing labor matters in the UAE private sector. Let us see:

1. Details of fixed-term contracts of employment
2. Types of work agreements and competition restrictions
3. At Connect Legal we can help you with your labour contract UAE

1. Details of fixed-term contracts of employment

Decree No. 33 of 2021 establishes the regulation of labor relations in the private sector. Thus, this UAE labour law, in force since February 2022, indicates that an employer can hire employees under fixed-term employment contracts. In addition, the employer can extend or renew this type of contract for a time equal to or less than the original period.

Also, if the employer does not perform any of the above actions at the time of expiration, both parties must continue to comply with the agreement. Likewise, the employment contract UAE is considered renewed under the same original terms and conditions. Besides, contract extensions or renewals count toward end-of-service benefit calculations.

In the same way, said law establishes that unlimited employment contracts can be converted into fixed-term contracts. This may be fulfilled after 1 year from the effective date of the current contract and the Council of Ministers may extend them. This also applies to indefinite-term contracts under Federal Law No. 8 of 1980.

1.1 The probation period in contracts of employment

In the UAE, the probation period for new employees cannot be longer than 6 months or extended. In addition, if the employee receives the labor contract UAE to continue in the company, this period counts as part of the total service. The employer may terminate the employee during this period but must notify the employee in writing 14 days before termination.

Similarly, if the employee under evaluation decides to change employer, they must notify the current one 1 month in advance. When this occurs, the new employer must pay compensation to the current one for the cost of hiring the employee. However, the current employer and the worker can reach an agreement so that the aforementioned payment is not made.

On the other hand, a worker may quit his or her job during evaluation to leave the country. In this case, they must provide their intention in writing with a notice period of 14 days. Also, if the employee returns within three months of departure with a new labour contract UAE, the new employer must compensate the previous one.

However, there may be an agreement between the employee and the previous employer so that the current one does not have to pay said obligation.

2. Types of work agreements and competition restrictions

In the UAE, the laws establish different labor regimes for employment contracts in the country. Thus, employers can establish the following labor schemes:

• -Part-time. A UAE employment contract in these circumstances allows the employee to work for several employers for a certain period.
• -Full-time. In this case, the worker completes his entire job with a single employer.
• -Temporary work. Here the worker receives a contract to work on a certain task and at the end of it the employment relationship ends.
• -Flexible work. The employer, according to its needs, can change the work hours or days of the employee.
• -Remote work. In this type of labor contract in UAE, the employee can work outside the workplace, totally or partially.
• -Job sharing. Agreements of this type distribute the activities and duties among the workers in a pre-established way. In addition, the rules for part-time contracts apply to this type of contract.

2.1 Non-Compete Restrictions

The new UAE Labor Law states that companies can include non-compete restrictions in contracts of employment. Additionally, employers must limit these measures to protect the legal interests of the company for up to 2 years after the termination of the contract. The employer must delimit the non-compete restrictions regarding the time, place, and nature of the work.

3. At Connect Legal we can help you with your labour contract UAE

Our company, with experience and success, when it comes to contracts of employment, can assist you in this area.

Thus, you just have to contact us through any of the means of communication available to you:

• Contact number: +971 43 316 688
• Email: [email protected]