The UAE’s Ministry of Human Resources and Emiratisation recently announced that all private sector companies must complete the amendment to employment contract by the February 1 deadline.
This amendment is mandatory and affects all private-sector employees in the UAE. This article will provide the information you need about the changes to the UAE’s private-sector employment contracts and answer some of your questions.
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Amendment to employment contract.
In October of 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.
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.
However, there will no longer be a limit on the length of the contract.
What is the deadline for the new contracts to be completed?
All private-sector employers must transfer to the new contracts by February 1, 2024. Companies that fail to meet the deadline risk being fined by the Ministry of Human Resources and Emiratisation.
Is it mandatory for all employees in the UAE to sign a new contract?
Yes, private sector employees must 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, as are domestic workers, are exempt.
Will employees have to pay for the new contracts and will this affect my job?
No, the employer pays for transferring the new employment contracts, and they cannot pass this on to employees.
This 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.
FAQs about the amendment to work contracts.
The amendment to employment contract in the UAE is an important change that affects all private-sector employees. The deadline for completion is fast approaching, and all companies need to comply to avoid penalties.
This amendment is part of the UAE’s ongoing efforts to strengthen its business environment, increase foreign direct investment, and attract skilled workers with new visas.
If you need legal assistance with your labour employment contract in the UAE, Younis Mohammed Al Blooshi labour lawyer & legal consultant is the best for labour cases.
Contact the office of Younis Mohammed Al Blooshi via Whatsapp. Click here. Or visit us at our address: Sobha Ivory 1 – Al Amal St – Business Bay – Dubai. You can also call us on phone: 00971589984123.
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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.