UAE Extends Deadline for Relaxation in Contracts for Employees

The United Arab Emirates (UAE) has extended the deadline for private companies from 1 February to 31 December 2023 to change the employment contracts in line with the revised labor law.

The UAE government revised the labor rules for fixed-term employment contracts, removing the 3 years cap and allowing employment contracts to have a defined term, with no maximum limit set. Also, if both employer and employee agree, the contract can be renewed.

According to the Ministry of Human Resources and Emiratization (MoHRE), the extension will give the companies additional time, allowing them to avoid financial penalties.

It remarked that the amendment will protect both parties, expand the labor market, and make UAE economically competitive. It will also enable firms and workers to easily agree on part-time work, job-sharing, and project-based tasks.

MoHRE further described the private sector as a main contributor to UAE’s progress and GDP and also lauded its efforts of Emiratization across the country. Emiratization is the UAE government’s policy to employ more nationals in the private sector instead of relying on foreigners.

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