The UAE’s amendment to fixed-term employment contracts is mandatory for all private sector companies and must be completed by the February 1 deadline, the Ministry of Human Resources and Emiratisation says.
In October last year, the UAE government lifted the three-year cap on the duration of private sector fixed-term contracts as part of its reforms to the country’s labour laws.
In recent years, the UAE, the Arab world’s second-largest economy, has introduced a number of economic, legal and social reforms to strengthen its business environment and increase foreign direct investment.
It also aims to attract skilled workers with new visas and provide incentives to companies to set up or expand their operations in the UAE.
The UAE employment market has also made a strong recovery from the coronavirus-induced slowdown, boosted by the government’s fiscal and monetary measures.
“The UAE government continues to develop regulations and laws that align with what the next 50 years of UAE’s development demand,” Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said last October, when the amendment was announced.
“The laws and regulations support our business environment’s stability and improve its resiliency and attractiveness.”
Here is everything you need to know about the changes to the UAE’s private sector employment contracts.
What changes have been made to employment contracts in the UAE?
In February last year, the UAE government introduced new legislation that updated the country’s labour laws.
Under the amendments, private sector employees’ permanent or indefinite contracts would be replaced with renewable three-year contracts.
However, in October, the government issued Federal Decree-Law No 14 of 2022, which removed the planned three-year limit on fixed-term employment contracts.
This means that private sector companies are now required to issue new contracts that cover a defined term of employment, which can be renewed “subject to an agreement by both parties to a contractual relationship”, the Ministry of Human Resources and Emiratisation said.
However, there will no longer be a limit on the length of the contract, it added.
It also means that employers and employees must agree on the duration of the contract.
“The regulations follow the UAE’s advanced developmental model and its fundamentals and principles that are built on justice, respecting human rights and staying ahead of changes. This guarantees the UAE’s continued progress, stability and pioneering stature,” Mr Al Awar said at the time.
What is the deadline for the new contracts to be completed?
All private sector employers must transfer to the new contracts by Wednesday, February 1.
Companies that fail to meet the deadline risk being fined by the Ministry of Human Resources and Emiratisation. It is not yet known what the penalty will be.
Labour law changes — in pictures
Is it mandatory for all employees in the UAE to sign a new contract?
Yes, it is mandatory for private sector employees to sign the new contract.
However, employees working for companies operating in the financial free zones of Abu Dhabi Global Market and Dubai International Financial Centre are exempt, as are domestic workers.
Will employees have to pay for the new contracts?
No, the cost of transferring the new employment contracts is paid for by the employer and they cannot pass this on to employees.
Will this affect my job?
No, it will not affect your day-to-day responsibilities.
However, it will allow private sector companies and employees to agree on part-time work, job sharing and other tasks, the Ministry of Human Resources and Emiratisation said.
The amendment also aims to protect both parties in a balanced way that advances the labour market’s growth and stability and enhances the UAE’s economic competitiveness, it added.
“The new amendments create an advanced ecosystem of mechanisms that boost the ease of doing business, productivity, and resilience within the labour market, while amplifying its attractiveness to the business owners and talents,” Mr Al Awar said.
Netherlands v UAE, Twenty20 International series
Saturday, August 3 - First T20i, Amstelveen
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Thursday, August 8 – Fourth T20i, Vooryburg
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Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham 0-1 Ajax, Tuesday
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Game is on BeIN Sports
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The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
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UAE currency: the story behind the money in your pockets
STAGE 4 RESULTS
1 Sam Bennett (IRL) Deceuninck-QuickStep - 4:51:51
2 David Dekker (NED) Team Jumbo-Visma
3 Caleb Ewan (AUS) Lotto Soudal
4 Elia Viviani (ITA) Cofidis
5 Matteo Moschetti (ITA) Trek-Segafredo
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
