The New Labour Law – UAE Employment Contracts’ Deadline!
As you know, the UAE is continually making efforts to evolve and improve its regulatory framework for employees and companies.
EER wants to make sure that you are kept up to date with all of those updates and changes, as well as their corresponding deadlines, in order to avoid incurring any costly penalties or fines.
What is involved?
Announced by the Ministry of Human Resources and Emiratisation, the New Labour Law, Federal Decree Law No. 33 of 2021 came into effect on 2nd February 2022.
According to the new law, all UAE employment contracts must now be issued on a limited term basis, not exceeding three years.
This means that unlimited employment contracts are no longer allowed and any existing unlimited term employment contracts MUST be converted into a limited term contract by 2nd February 2023.
The term of any employment contract can continue to be extended or renewed in accordance with an agreement between employer and employee and the new term shall be deemed as an extension and therefore added on when calculating the employee’s end of service.
All companies should be compliance before 2nd February 2023. Currently all DMCC companies must be compliant by this date, and companies who fail to comply will face a sanction or block. Additional fines may also be a possibility.
How EER can help with UAE Employment Contracts
EER can assist you with coordinating any contractual conversions or replacements across your company to ensure you are in compliance with these requirements. Their expert team is well versed in the new regulations and can walk you through the processes that are relevant to your organisation and how best to complete the necessary changes.
If you would like to talk to one of their corporate services team about your options, please get in touch today on +971 (0)4 421 1819 or [email protected]