Employment Contract in Dubai

Terms of employment in Dubai are comprised in Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (in force since 2 February 2022, replacing Federal Law No. 8 of 1980), which was introduced in order to provide for modern labor conditions for both employees and employers. As an Emirate hosting a great number of free zones, Dubai also accommodated special regulations related to employment contracts for those working in free zones.

Our company formation agents in Dubai can provide more information about the Employment Law in the UAE.

Types of employment contracts in Dubai

Since 2 February 2022 the law allows only fixed-term (limited) contracts, and unlimited contracts had to be converted by 31 December 2023. Previously the law provided for two types of labor contracts in Dubai:

• the permanent employment agreement;
• the limited employment contract.

The difference between fixed-term and unlimited labor agreements is the duration of the contract, which can be for a determined period of time in the case of fixed-term agreements, respectively for an unlimited period of time, case in which one of the parties must end the contract.

When it comes to foreign citizens coming to work in Dubai, the company hiring them must first obtain approval from the Ministry of Human Resources and Emiratization. Based on this approval, the company will sponsor the foreign employees for obtaining their work visas. Foreign workers signing an employment contract with a free zone company will be sponsored by the free zone authorities directly.

Signing a labor contract in Dubai

Prior to commencing the work, the company must send the potential candidate for a job letter which will contain the employment terms. Before the work permit is issued, the employee must sign the MoHRE standard offer letter (issued in Arabic and English), and certified by the Ministry of Human Resources and Emiratization. The letter will contain the same information as the employment contract:

• the names and addresses of both employer and employee;
• the salary and other benefits;
• the job title and description;
• the period of the labor contract;
• the conditions for termination of employment;
• the notice period to be given when one of the parties wants to terminate the contract.

Foreign employees also have the right to end of service gratuities, just like UAE nationals.

For assistance in hiring employees in the UAE, do not hesitate to contact our company registration representatives in Dubai.