Last Updated on: 1st July 2023, 01:35 pm
The Last Date For The New Law Changing The Length Of Employment Contracts in UAE is Coming Soon
The last date for UAE employers to amend employment contracts under the new labor laws is fast approaching as employers have until 1st February 2023 to comply.
Last year the government changed the rules for fixed-term contracts in the private sector. Previously, the law stipulated that these contracts could not last longer than 3 years.
However, with the new amendment, the 3-year limit has been abolished, allowing employment contracts to be of fixed duration with no fixed maximum limit. If the employer and employee agree, the contract can be extended.
According to the Ministry of Human Resources and Emiratization (MoHRE), this change will protect both parties, develop the labor market and make the UAE economically competitive. With this amendment, companies and employees can easily agree on part-time work, job sharing, and project-related assignments.
However, the law does not apply to employers in Abu Dhabi Global Market and Dubai International Financial Free Zones, and domestic workers employed by families are also exempt.
In addition, companies that fail to review contracts face penalties. However, authorities have not disclosed the fine or penalty that will be imposed.
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