The UAE labour law fixed term contracts for private sector employees have been revised.
The new amendments have been implemented to enhance the UAE’s economic competitiveness and attract skilled workers.
This article will try to provide the best explanation of the new amendments to the UAE labour law fixed-term contracts and their implications for employees and employers.
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Table of Contents
UAE labour law fixed term contracts.
Fixed-term contracts are employment contracts that last for a specified period. These contracts are commonly used in the UAE, particularly in the private sector.
In February 2022, the UAE government introduced new legislation that updated the country’s labour laws, including new regulations for fixed-term contracts. Check UAE labour law pdf.
Under these new amendments, private sector employees’ permanent or indefinite contracts would be replaced with renewable three-year contracts.
However, in October 2022, the government issued Federal Decree-Law No 14 of 2022, which removed the planned three-year limit on fixed-term employment contracts.
As a result, 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 duration of the contract will no longer have a limit.
New labour law limited contract UAE.
The new fixed labor contract UAE is a type of employment contract that specifies the employment period’s start and end date.
These contracts can be renewed, but the duration of the contract is typically agreed upon by both the employer and the employee.
Fixed-term contracts are commonly used for projects, seasonal work, or temporary positions within a company.
Unfair Dismissal of Fixed-Term Contract Employees.
Fixed-term contract employees are entitled to the same protections as permanent employees under the UAE labour law. This includes protection against unfair dismissal.
If an employer terminates a fixed-term contract employee before the end of the contract period without cause, the employee may be entitled to compensation.
FAQs about uae labour law fixed term contracts.
Conclusion.
The new amendments to the UAE labour law fixed-term contracts have removed the three-year limit on fixed-term contracts for private sector employees.
This change 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.
Fixed-term contract employees are entitled to the same protections as permanent employees under the UAE labour law, including protection against unfair dismissal.
If you are facing any labour-related issues, it is essential to seek the advice of an experienced and knowledgeable labour lawyer like Al Mulla.
Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.
Read about the part-time employment contract in Dubai and the Changes in Employment Contract Period in Dubai.
Also, Learn about amendments to employment contracts in Dubai and check labour contract UAE online.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
