Effective September 29, 2022, the Ministry of Human Resources and Emiratization (MoHRE) has brought into force an amendment vide Federal Decree law No. 14 of 2022 amending some provision/s of Federal Decree – Law No. 33 of 2021 which primarily deal with the Regulation of Labor Relations. The amendment primarily relates to abolishing the maximum duration which had been set at three years for the employment contracts. The text of clause (3) of Article (8) of Federal Law Decree No. 33 of 2021 prior to the amendment stated that “the employment contract shall be concluded for a specified period not exceeding three years and may be renewed or extended by agreement of the parties for another similar period or for a shorter period of one or more times.” However, post amendment, the new law now stipulates in its first article that the text of paragraph (3) of Article (8) of Federal Decree-Law No. 33 of 2021 shall be replaced by the following text: “The employment contract shall be concluded for a specified period renewable as agreed by the parties”.
As can be seen, the new amendment clearly abolishes the maximum duration of the employment contract that was earlier limited to three years. It has given freedom to both the parties i.e., an employer and an employee, to agree on the period they deem appropriate in accordance with the nature of the work and the interests of the parties. There is no regulated maximum fixed term anymore under law for such employment contracts. In other...
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