02/02/2023
UAE employment contract changes:
Deadline, Definition of a Fixed Term, and everything else you need to know!
What changes have been made to employment contracts in the UAE?
In February of last year, the UAE government introduced new legislation that updated the country’s labor laws.
The changes would swap out permanent or indefinite contracts for renewable three-year contracts for employees in the private sector.
Federal Decree-Law No. 14 of 2022, which the government issued in October, did away with the proposed three-year cap on fixed-term employment contracts.
According to the Ministry of Human Resources and Emiratization, this means that businesses in the private sector must now create contracts with defined terms of employment that can be renewed "subject to an agreement by both parties to a contractual relationship."
It added that the contract's duration would no longer be constrained. According to the new law, Federal Law No. 33 of 2021, employers and employees must agree on the length of the contract.
