Changes to the UAE Employment Contract Law;  The Limit of Three Years has been Removed

Employment contracts in the private sector must have a fixed term, but the law does not specify how long they should be

Dubai: The UAE Ministry of Human Resources and Emiratization has announced an important amendment to the Regulation on Employment Relationship Regulation.  In the case of employment contracts in the private sector, the limit of three years has been removed.

Under the new amendments, employment contracts must have a fixed term.  But the law does not specify how much it should be.  The ministry clarified that the contract can be renewed as long as both parties agree to the terms.

Widespread changes to labor legislation were first announced in November.  The amendments, which came into force in February, said that employment contracts should not exceed three years.  This has now changed.

The amendment aims to provide equal protection to both parties.  Officials hope that this will improve the growth and stability of the labor market and increase the economic competitiveness of the UAE.

The new amendment applies to employees of free zones and mainland companies, except Dubai International Financial Center and Abu Dhabi Global Market.

Abdulrahman Al Awar, Minister of Human Resources and Indigenization, said the government continues to formulate regulations and laws that match the UAE’s development needs over the next 50 years.

“These laws follow the UAE’s new development model, foundations, and principles based on justice, respect for human rights, and staying ahead of change.  This ensures the UAE’s continued progress, stability, and leadership status,” he added.