The initial deadline was set for February 2023 and has now been extended until the end of the year.

As per the new UAE labour law, employers were previously supposed transfer employees to a limited-term contract by February 1. The UAE’s Ministry of Human Resources and Emiratisation has confirmed that private sector companies now have more time to transfer all employees on to new contracts.

As reported by Arabian Business last week, firms now have until December 31 to transfer employees from an unlimited-term employment contract on to a fixed term contract.

Following the deadline, employers will be subject to a fine or penalty for the contracts not transferred.

“The decision stems from our belief in enhancing flexibility, competitiveness and ease of business for private sector companies and safeguarding all parties’ rights,” the Ministry said.

Those companies in the Abu Dhabi Global Market (ADGM) and Dubai International Financial free zones are exempted.

UAE Employment Contract

“A limited-term contract is a fixed-term contract and is normally linked to the duration of the UAE residency visa (i.e. two or three years, depending on the location of the employer). It will automatically terminate at the end of the term unless terminated earlier by either party or renewed by both parties,” according to Al Tamimi & Co.

Last week, the Emirates clarified certain work rules in regards to overtime and break hours.

UAE private sector employees are entitled to take one or more breaks, if he or she works for five consecutive hours. These breaks must not be less than one hour, and are not calculated within the working hours, according to the official government website.

It was also announced by the UAE Ministry of Human Resources and Emiratisation (MoHRE) that employers can ask employees to work overtime, as per the Labour Relations Law and its regulations.

Source: Arabian Business