‘Engage all employees on fixed terms by Feb. 2023’: UAE labour law

Amendments have been made to employment relationship regulations for greater flexibility


To ensure more flexibility, the United Arab Emirates’ (UAE) ministry of human resources has amended its employment relationship regulations.

As per the new labour law, all indefinite contracts will be changed to fixed-term agreements. Earlier, employers could hire people on a fixed-term job contract for up to three years. This three-year limit has been done away with.

Companies will be able to lengthen the duration of contracts, beyond the visa status of the candidates / employees. Those who have already engaged employees for three years have the option to renew those contracts once they expire or alter the contracts to lengthen the duration of the same.

All employers will have to ensure that their employees are engaged on fixed terms by February 2023.

That is not all. Employees will now be able to enjoy more flexibility and take up part-time or temporary jobs too. Part-time work has been formally accepted. Therefore, employers need not fear that contract employees will demand the same benefits as full-time/regular employees, and pay them only what is due.

Employers will not be allowed to discriminate on the basis of colour, sex, religion, disability or ethnicity.

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