UAE Extends the Time Frame for Changing Employment Contracts

The deadline for private sector firms to convert unlimited-term employment contracts to fixed-term ones has been extended by the UAE.

Instead of February 2, the Ministry of Human Resources and Emiratization (MoHRE) announced that the new deadline is now December 31, 2023. 

“The decision stems from our belief in enhancing flexibility, competitiveness, and ease of business for private sector companies and safeguarding all parties’ rights. Providing enough time for companies to change the contracts supports the labor market; our role is providing all the necessary tools for companies to succeed and flourish; ease of business is definitely an important approach that we adopt in the market,” stated the ministry. 

The Ministry (MoHRE) has announced the extension of the deadline for private sector employers to rectify unlimited-term employment contracts of their employees to fixed-term contracts. The new deadline now is 31st December 2023, instead of 2nd February 2023. pic.twitter.com/IcLxr5i8RJ

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 30, 2023

Private employment agreements must have a defined period and can only be extended with both parties' consent, as stated by the Ministry in October 2022. The length of the contract is also not restricted by the law.

The new labor law also includes part-time, temporary, flexible, and remote employment agreements apart from the full-time scheme. In short, the form of the legal contract that best serves both parties' interests can be decided by both employers and employees.

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