The UAE has lifted a three-year limit on the duration of fixed-term employment contracts within the private sector.
The Ministry of Human Resources and Emiratisation (MoHRE) announced amendments to UAE employment law and the decree-law on the Regulation of Employment Relationship.
The amendments update the labour laws brought into force in the UAE in February.
UAE employment law update
The updated law states that fixed-term contracts in the private sector must still have a defined duration, but the UAE law will no longer insist on a time limit of how long that can be.
The MoHRE said contracts can be renewed as long as both parties agree to the conditions.
The new rules aim to offer protection to employees and their employers in a balanced way and will also advances the labour market’s growth and stability while enhancing the economic competitiveness of the UAE.
Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said: “The UAE government continues to develop regulations and laws that align with what the next 50 years of UAE’s development demand.
“The laws and regulations support our business environment’s stability and improve its resiliency and attractiveness.
“The regulations follow the UAE’s advanced developmental model, and its fundamentals and principles that are built on justice, respecting human rights and staying ahead of changes.
“This guarantees the UAE’s continued progress, stability and pioneering stature.”
Al Awar added: “The new amendments create an advanced ecosystem of mechanisms that boost the ease of doing business, productivity, and resilience within the labour market, while amplifying its attractiveness to the business owners and talents.”
UAE employment law rulings announced last year insisted that work contracts could not last longer than three years.
Both parties in an employment contract will be given more stability following the new amendments and be able to create a contractual roadmap for a flexible period of time.
While the rules are introduced for governing the private sector, they will cover employees in free zones within the UAE.
The rules do not apply to public sector employees.
The changes come to the UAE employment law come in the same week the UAE strengthened legal obligations to domestic workers in the country.
On Wednesday, October 5 WAM reported that Decree Federal Law No.9 for 2022 was issued to strengthen domestic labour rights.
The decree law covers working hours, weekly breaks and leave for domestic workers and affirms the right of domestic workers to a paid day off per week, according to the law’s executive regulations.
Under the law, the executive resolutions issued by the Ministry of Human Resources and Emiratisation are responsible for organising working hours and leave. The law also stipulates that daily breaks cannot be less than 12 hours, including eight working hours.
Regarding annual leave, the decree law stipulates the right of domestic workers to be paid annual leave of no less than 30 days. If the service period is less than a year and more than six months, they are entitled to two days leave every month, and the employer can specify the start date of the annual leave.
The decree law stipulates that if domestic workers wish to travel to their home countries on annual leave, employers must cover the cost of their return tickets once every two years. However, if the two parties agree to terminate or not renew their employment contract after the annual leave, the employer will only cover the cost of a one-way ticket.
Major changes to UAE employment law were introduced in February this year.
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