The UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector is the most recent legislation governing different types of employment contracts.
The law introduced significant changes to the previous employment contract regulations, including removing the unlimited employment contract and stipulating only limited-term contracts.
Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.
Table of Contents
Different types of employment contracts.
A contract of Employment is a legally binding agreement that sets out the terms and conditions governing the employment relationship between an employer and an employee.
This document includes information such as salary, working hours, job responsibilities, and notice periods for termination. It is a crucial document that protects the rights of the employer and the employee.
Keep reading to learn about the UAE’s 4 main types of employment contracts.
Limited-term Contracts.
Under the new law, all employment contracts in the private sector must be limited-term contracts with a maximum duration of two years. However, the contract can be renewed or extended for similar or shorter periods.
The law also allows for the conversion of existing unlimited-term contracts into limited-term contracts within one year of the effective date of the existing contract.
Part-Time Contracts.
Part-time contracts are for employees who work fewer hours than full-time employees. Under this type of contract, employees work for one or more employers for specific hours or days.
Temporary Employment contracts in UAE.
Temporary contracts are for a specific assignment, ending when the assignment is completed. This type of contract is common in industries that require project-based work, such as construction or event management.
Flexible Contracts.
Flexible contracts allow employees to work hours or days that change depending on the employer’s business needs. This type of contract is suitable for employees who require flexibility in their work schedule, such as parents or students.
Remote Contracts.
Remote contracts allow employees to work remotely, either partially or entirely. This type of contract is becoming increasingly popular due to technological advancements, which allow employees to work from anywhere with an internet connection.
FAQs about different types of employment contracts.
Conclusion.
The new Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector introduced significant changes to the previous employment contract regulations.
The most significant change is removing the unlimited employment contract and stipulating only limited-term contracts in the private sector.
Employers and employees must ensure that they comply with the new provisions when drafting new employment contracts or renewing existing ones.
In addition, if you need legal advice on labour employment contracts, Al Mulla Labour Lawyer & Legal Consultant is the best for labour contract cases in the UAE.
They can provide expert guidance and support to ensure you comply with the new regulations and protect your rights as an employer or employee.
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.
Learn about the Changes in Employment Contract Period in Dubai 2023 and read about part-time employment contracts in Dubai. Also, read about the case of an employer hasn’t given contract of employment in Dubai.
Also, read about the New employment contract notice period changes in the UAE.
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.