Final reminder - Update UAE Labour Contracts before February 2023 l PRO Partner Group

Date Posted:Thu, 12th Jan 2023

Final reminder - Update UAE Labour Contracts before February 2023 l PRO Partner Group

PRO Partner Group wanted to remind you that all companies with employees under a fixed or unlimited term contract must be changed to a Limited Contract before 1st February 2023.

 

Both the fixed and unlimited term contracts are to become obsolete. 

The Limited Contract applies to both mainland and free zone entities. It is a modification of existing contracts (not new contracts) and in most cases will not effect the expiry date. Assuming this is correct, employees current EID and Labour Cards would be unaffected. 

Details of the new Limited Contract are listed below: 

  1. Probation remains at a maximum of 6 months
  2. Notice during probation is 14 days for both parties
  3. Notice period can be 30, 60 or 90 days
  4. Employees can terminate the contract at any point as long as they serve their notice as agreed in their contract
  5. Renewable every 2 years
  6. Gratuity is paid at the full rate even if employee resigns or is terminated 
  7. 30 calendar days of annual leave
  8. Introduction of part-time and flexible work contracts under the Limited Contract

If you require any assistance with your staff employment contracts and making sure they adhere to UAE Labour Laws, your employee visas or any other related HR, visa, company set up, restructuring or PRO support matter in Dubai, Abu Dhabi, wider UAE, please do get in touch with us and we will be delighted to assist you.