UAE: Deadline for changing employment contracts extended


Abu Dhabi: The United Arab Emirates (UAE) has extended the deadline to change the terms of employment contracts to comply with the new rules, local media reported.

The Ministry of Human Resources and Emiratisation has given time till December 31, 2023 from February 1, 2023, to modify the contracts in accordance with the new rules. 

The new labour law came into force in the country on February 2, 2022. 

The most important of these is the reform of fixing the duration of employment contracts. Therefore, employment contracts signed for an indefinite period without fixing a fixed period have to be changed according to the law.

Accordingly, all employment contracts must be for a fixed period. The employment contracts can be for a maximum period of three years. Contracts may be extended or renewed for a similar period or a shorter period if the employer and worker agree.

As per multiple media reports, if the employer and the worker continue to implement the contract after the expiry of its original term without an explicit agreement, the original contract is considered extended with the same conditions contained therein.

In the event of contract extension or renewal, the new period or periods shall be considered an extension of the original period and shall be added to it in calculating the employee’s continuous period of service.

Unspecified work contracts will be converted into fixed-term work contracts within one year from the date the new labor law enters into force and in accordance with the conditions, controls and procedures contained therein.

The law allows the country’s cabinet to extend this period as required by public interest. According to the new decision, time has been given till the end of 2023 to revise fixed-term employment contracts in the private sector.

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( With inputs from )

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