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Tuesday, September 29, 2026

UAE lifts three-year cap on private sector employment contracts - Pinsent Masons

Ruth Stephen tells HRNews about Federal Decree Law No.14 of 2022 which lifts the cap on the length of fixed-term employment contracts

  • The UAE’s labour laws have been amended once again to lift the cap on the length of fixed-term employment contracts. The change comes after businesses expressed concern that the three-year cap could make it more difficult to attract and retain talent. However, it seems many firms in the region have already updated employment contracts to comply with the original three-year cap so where does this latest change leave them? We’ll hear from a Dubai-based lawyer.

    Gulf News reports on this and gives the background. The Labour Law, which first came into force in February 2022, required employers to ensure that all private sector employees were given fixed-term contracts of up to three years. Federal Decree Law No.14 of 2022 has removed the cap, enabling employers to agree the duration of fixed-term contracts with their employees, so helping to attract and retain staff.

    The other development to report is an earlier amendment to the UAE Labour Law introduced a new unemployment insurance scheme. Individuals who are subscribed to the scheme for at least one year will be able to receive income protection in certain circumstances following the termination of their employment. The full details of the scheme have not yet been published but it is expected that it will come into operation at some point next year with insurance premiums being deducted...



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