Dubai: As a new labour law comes into effect from February 2, 2022, governing the private sector in the UAE, one major change that will affect a big number of workers is the removal of the unlimited contract.
Earlier, contracts were either signed for a limited or unlimited period, with the rights and responsibilities changing slightly between the two contract types. However, legal experts Gulf News spoke with explained how the new Labour Law - Federal Decree-Law No 33 of 2021 on the Regulation of Labour Relations – will require new contracts to be drafted by February 1, 2023.
Speaking to Gulf News, Ahmed Elnaggar, Managing Partner, Elnaggar & Partners said: “All private sector employers must replace the current employment contracts with the Ministry of Human Resources and Emiratisation (MOHRE) with new employment contracts that are in line with the changes as stated in Law No. 33 of 2021, within a maximum period of one Gregorian year from the date of the law’s implementation so that the date February 01, 2023 becomes the deadline for making these changes.”
Article 8 of the new law looks at the requirements that an employment contract needs to fulfil and how it would only be applicable for a maximum duration of three years. The details of the contract will vary depending on the model of work that the worker has been contracted for – full-time, part-time, temporary or flexible.
Here is what Article 8 of the new UAE Labour Law states about employment contracts:
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