Labour Contract in the UAE: All You Need to Know

If you have signed a labour contract in the UAE or plan to apply for one soon, be aware that new legislations may disrupt your working life. The UAE introduced a new set of labor rules in early 2022. Therefore, these regulations repeal and replace UAE Ministry of Labour Federal Law No. 8 of 1980. Federal Decree-Law No. 33 governs employment relationships in the private sector.

In this article, we will be tackling the topic of the labor contract UAE. Employees and employers must alter old employment contracts to conform with the new law. Employers must also revise a slew of policies and processes pertaining to future contracts with new hires. Here, we address all of your questions about labor contracts in the UAE. Continue reading to learn all you need to know regarding legal employment in the UAE.

  1. What is a labour contract agreement?
  2. What Does a labour contract UAE needs under Federal Decree-Law No. 33?
  3. How to check labour contract UAE?
  4. Connect Resources: Your best ally in the region

1. What is a labour contract agreement?

labour contract

A labour contract is a legal agreement between an employer and employee that both parties sign. The employment contract UAE becomes legally binding after both parties sign it. The kind and extent of an employee’s work is in place thanks to their employment contracts. Additionally, it frequently includes timelines, schedules, and work objectives.

A labor contract binds both the employer and the employee in the same way. The employer must pay any benefits due in accordance with the terms of the contract.

Several distinct kinds of employment contracts are permitted by UAE labor contract legislation. The following are crucial contract categories to comprehend:

  • Limited (fixed-term).
  • Unlimited (flexible).
  • Part-time.
  • Full-time.
  • Temporary.
  • Unique employment.
  • Job-sharing.

It is crucial to comprehend how each of these types of contract could affect your ability to work legally in the UAE.

1.1 Unlimited contract UAE vs. Limited contract

Three fundamental aspects set restricted and unlimited labor agreements apart. Each form of contract includes various:

  • Legal requirements.
  • Protections.
  • Dismissal proceedings.
  • Different industries of work attract diverse contract kinds.

1.1.1 Fixed-Term Contract (Limited)

When a business requires personnel for a specific project, a fixed-term agreement is suitable.

The organization needs to estimate how long the project will take in terms of time. The contract’s conditions should then be set with the project’s presumptive start and finish dates.

A limited contract, often known as a fixed-term contract, binds the employee to employment for a specific period of time. The employer also needs to pay for the work within the same timeframe.

The beginning and ending dates of the job durations are specified in these contracts. The Agreement will terminate at the End Date unless both parties expressly renew it earlier. At that point, both work and payment will stop.

A fixed-term contract may impose a duty for up to three years in accordance with recent legal changes. Therefore, this is a departure from earlier legal restrictions, which had various time frames. Fixed-term contract agreements are now obligatory according by Federal Decree-Law N°33. By February 2023, employers must convert all workers to fixed-term contracts.

1.1.2 Flexible Contract (Unlimited)

Contracts with unlimited terms or flexible terms do not have predetermined expiration dates. The contract is instead only over when both parties agree to do so. There are certain exclusions, though. Given particular circumstances, either party may end a contract without the other’s approval.

If the employee provides the employer advance notice, they may freely end the employment relationship without the employer’s approval. The contract will specify the minimum required notice period.

Legally speaking, a 30-day notice of termination is necessary. The worker may owe the company up to 30 days’ worth of earnings if they fail to give the employer notice.

An unlimited contract cannot be over without 30 days’ notice from the employer to the employee. In the following situations, an employer is free from this requirement and may dismiss immediately:

  • Firstly, if a worker presents forged documents.
  • Then, if the worker falsely presents their identity.
  • Also, when the company dismisses the worker during a probation period.
  • Subsequently, if the worker violates verbal safety advice or signage.
  • If an employee consistently neglects to carry out basic responsibilities, the employer will be warned and may intervene.
  • In case a worker transgresses non-disclosure agreements.
  • Therefore, if the event that the employee is guilty according to court of dishonor, dishonesty, or violating public morals.
  • Consequently, if the worker is drunk while at work.
  • When an employee assaults someone at work or while performing their duties.
  • Lastly, if they miss work without a valid reason.

The law requires employers to pay the employee’s 30-90 days’ worth of earnings if the employee’s contract is over without cause. A notice term other than the one the contract establishes may be in agreement upon by mutual bargain of the parties.

1.2 Full-Time vs. Temporary vs. Part-Time Contract in the UAE

The UAE divides employment agreements into full-time, part-time, and temporary categories.

A full-time contract binds a worker to grind 48 hours a week for a single employer. This typically calls for six 8-hour workdays. On the other hand, a part-time agreement is still between a single company and a single employee. But, the worker needs to work less than 48 hours each week. A contract with a 90-day probation period is a temporary contract. During the first 90 days of employment, this contract establishes the rights and responsibilities of both the employer and the employee.

The company will often extend employment with a full-time or part-time contract beyond this brief period. A part-time employee may accept a part-time offer from another company without the consent of their current employer. To work part-time for more than one company, however, an employee must receive a license from the Ministry of Human Resources and Emiratization (MoHRE).

1.3 Overtime requirements and full-time hours

It is illegal to mandate a workday exceeding eight hours in the majority of industries in the UAE. A 9-hour shift is acceptable in the hospitality sector. However, no one employee’s workweek can be longer than 60 hours.

If an employee works more than 48 hours, they are subject to overtime rates. Typically, these rates are the employee’s hourly wage + 25%. The hourly wage of the employee plus 50% must be paid for any overtime put in from 9:00 pm to 4:00 am.

Employees have the rights to a make-up rest day if they work on their planned rest day. Alternately, firms must pay workers who show up for work on their scheduled days off 150% of their regular compensation.

1.4 Unique employment agreement

An employee may obtain a unique UAE labor contract by public sector enterprises. Companies hire employees for a high position under this contract.

The minister needs to designate people to special contracts. Contracts only experience renewal for a maximum of two years.

1.5 Job-Sharing agreement

Job-sharing agreements are a more recent development. These agreements give employers the option to distribute a full-time position among several workers. Likewise, the part-time contracts specify how the duties and hours of the employment must be distributed among the employees.

2. What Does a labour contract UAE needs under Federal Decree-Law No. 33?

labour contract

Several modifications to employee contract UAE are in place by Federal Decree-Law No. 33. Therefore, these modifications affect the rights and duties that employers and employees have under a work agreement.

Most reforms provide employees more rights. Additionally, they give employers additional freedom in several areas.

2.1 Requirements for UAE fixed-term contracts

The change to fixed-term employment contracts for all workers is codified and made mandatory by the new law. Therefore, most of the burden for conveying this transition falls on HR experts. Employers must convert their manpower to fixed-term employment by February 2023.

2.2 Dubai labour contract notice requirements and probationary period

A company has the right to put a worker on up to six months of probation if they don’t perform well (but for no longer). For new hires, the employer could also impose a probationary term at first. Also, employers are required to provide probationary employees with at least 14 days’ notice before terminating their employment.

A probationary employee is also required to give the company at least 14 days’ notice if they plan to leave the United Arab Emirates. However, if an employee wants to start working for another UAE employer, they must give 30 days’ notice.

2.3 Contracts with flexible arrangements

Contracts with variable terms are now legal under the new law. Consequently, contracts with flexible scheduling provisions may let employees pick the hours they work. Alternately, an employer can demand that a worker keep a variety of work schedules over the course of a year.

An employee’s hours are inconsistent in both scenarios. Nevertheless, the business must still adhere by regulations governing overtime and workload restrictions.

2.4 Restrictions on interaction

Non-compete clauses are permissible provisions for employers to insert in a labor agreement. However, employers are not allowed to stop part-time workers from looking for additional work at non-competing companies. Employees who work for different employers are required to obtain a MoHRE labour contract permit.

2.5 Rest day agreements

Legally, employers are required to provide every worker a day off each week. However, they are no longer required by law to designate Friday as a day of rest.

Staff who work on their designated rest days must be compensated by their employers. A replacement rest day or overtime pay are two possible forms of payment.

2.6 Currency dealings

Employees and employers can both agree to receive they minimum wage payments in any currency. The Wages Protection System, however, is only capable of handling UAE dirhams. Employers who use WPS must therefore first convert revenues into that currency.

2.7 Entitlements to leave

Every year that an employee accrues leave, they are required to spend it. They may be eligible for payment of the amount by the end of the year if they do not use the leave.

For the first six months, employees are entitled to accrue absence at a rate of two days per month. If a person has worked for a company for a year, they are legally entitled to 30 days of leave. The law distinguishes special leave categories as well:

  • Pregnancy leave.
  • Sympathetic depart.
  • Study break.

Employees have the right to 45 days of paid maternity leave and 15 days of unpaid leave for new mothers. Employees are entitled to an extra 30 days of paid leave if they give birth to a child who is ill or disabled.

Furthermore, employees have the right to 3-5 days of paid time off if a member of their immediate family passes away.

Workers are eligible to 10 days of study time at an authorized UAE institution of higher learning. However, in order to be eligible for study leave, employees must have been with their firm for at least two years. Unpaid study leave is possible.

2.8 Conditions for contract termination

A fixed-term contract may be terminated by the employer for good reason or due to layoffs. Employees are entitled to notice of imminent termination from their employers.

For instance, a worker is:

  • Entitled to at least 30 days’ notice if they have been with their company for five years or fewer.
  • They are legally entitled to 60 days’ notice because he worked there for five to ten years.
  • They are allowed to 90 days’ notice if he has over ten years of service with the company.

The reasons for ending a fixed-term contract are the same as the reasons for ending an unlimited contract. An employee may be legally suspended for up to 30 days if their employer makes a misbehavior allegation against them.

The employee must receive half salary during the suspension, and the employer is required to look into the matter. The worker is entitled to compensation for his leave time if he is found not guilty.

Employee termination benefits must be paid by employers within 14 days.

2.9 Service-end gratuity

The method for end-of-service tips has been altered under the new law. All workers are now eligible for the full end-of-service gratuity. However, in order to be eligible for a gratuity, staff must work for their employer for at least a year.

2.10 Workplace policy requirements

The new law requires employees to uphold specific workplace policy principles. Consequently, these consist of:

  • Anti-discrimination against groups who have protection.
  • Pay equity between the sexes
  • A ban on verbal, sexual, and physical harassment.
  • The provision of a handbook for employees.
  • Keep employment records for a period of two years after termination.

3. How to check labour contract UAE?

3.1 Ministry of Human Resources and Emiratization (MoHRE)

If you are wondering how to check labour contract online, you can do so through the Ministry of Human Resources and Emiratization (MoHRE). This website provides resources and information. All employees in the UAE have access to online labor contracts. Once the contract has been issued by the Ministry of Labour, it is always available online or through the smartphone app. Choose “Job Offer and Contract Services” from the “Services” tab.

3.2 MoHRE Online

You can access the “My Contracts” form on the “Current Jobs and Contract Solutions” page. Use your transaction number to look up your contract. You can search using your personal information if you don’t have your transaction number. At this point, you ought to be able to locate your contract by following the website’s instructions. Doing your labour contract UAE online is fairly easy.

If you require additional assistance, using the website’s chat features or phoning a professional at 600590000 is an easy method to do so.

3.3 MoHRE App

In addition, you can utilize the MoHRE app rather than the website. Get the MoHRE app from the App Store or Google Play. Download the app, then register. Then, adhere to the on-screen directions to enroll as an employee. Log in after registering. To access your dashboard, click “My Dashboard.” Scroll down until you find “View Labor Contract,” then click it.

If you are wondering how to get labour contract online, you can get a copy of the employment contract from this website.

4. Connect Resources: Your best ally in the region

Knowing the details of the UAE labour contract online was pretty easy. However, there is still information that you can learn with the support of Connect Resources. We are your best ally to provide or obtain an employment contract in the region.

With our company, you can also obtain the following services:

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Do you need support with anything related to your labour contract in the UAE? Contact us! You can call us at +971 43 316 688. In addition, you can email us at contact@connectresources.ae.

Furthermore, if you want to find a job in the UAE, you can register on thetalentpoint.com. There, you can submit your resume and find new vocational opportunities. Send us your requirements at contact@thetalentpoint.com to know more!

For CV’s or resume submit please join thetalentpoint

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