New UAE Labour Law: What Employment Contract Must Include

Contracts need to include complete information about the employees, employers and nature of work.

The new labour law, announced by the UAE, has introduced a raft of amendments and employment reforms that empower employees in the private sector.

Private companies and establishments must replace unlimited contracts with three-year fixed-term contracts within a year from tomorrow.

Employers have been given a deadline of February 3, 2023, to replace their existing unlimited contracts. New contacts issued will be 3-year limited contracts.

Starting tomorrow, February 2, contracts will be issued to govern the responsibilities and rights of employees and employers in each of the six job models introduced under the new labour law. These include shared jobs, part-time, full-time, temporary, flexible and remote work.

The Ministry of Human Resources and Emiratisation said contracts need to include complete information about the employees, employers, and nature of work. Working hours and weekends must be stated in the agreement

The information that should be written in the employment contract includes – the job or profession, joining date, place of work, rest days, working hours, probation (if any), the duration of the contract, the wage (including benefits and allowances), annual leave, notice period, and procedures for contract termination.

Other information to be included are the name and address of the employer, the worker’s name, nationality, date of birth, and qualifications.

Any other data determined by the ministry must also be included in the contract.

Workers and employers are allowed to introduce new clauses to the approved contract forms in accordance with the UAE labour law.

Contracts are renewable every three years or less, depending on the agreement of both parties. The extension will be added to the worker’s end-of-service gratuity.

Contracts can also be changed from one work model to another based on an agreement between both parties. Employers need to ensure that the entitlements of the first contract are entirely met before changing the job model for employees.

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