Employment contracts in the private sector must have a fixed period, but the law does not specify how long it should be
Dubai: The UAE Ministry of Human Resources and Emiratisation has announced an important amendment to the Regulation on the Regulation of Employment Relations. In the case of employment contracts in the private sector, the three-year limit has been removed.
Under the new reforms, employment contracts must have a fixed term. But the law does not specify how much it should be. The ministry explained that the contract can be renewed as long as both parties agree to the terms.
Wide-ranging changes to labor legislation were first announced in November. The amendments, which came into effect in February, stated that employment contracts should not be longer than three years. This has changed now.
The aim of the amendment is to provide equal protection to both parties. Officials hope this will improve labor market growth and stability and increase the UAE’s economic competitiveness.
The long-term contractual arrangements that the new amendment provides will increase job security and also benefit businesses. The new amendment applies to employees of free zones and mainland companies, with the exception of the Dubai International Financial Center and the Abu Dhabi Global Market.
Abdulrahman Al Awar, the Minister of Human and Native Resources, said the government continues to formulate regulations and laws that match the development needs of the UAE over the next 50 years.
“These laws follow the new development model of the United Arab Emirates, the foundations and principles based on justice, respect for human rights and staying ahead of change. This ensures the continued progress, stability and leadership status of the UAE,” he added.
