The Ministry of Human Resources and Emiratisation (MoHRE) has extended the deadline for updating work contracts, from February 1, 2023, to December 31, 2023. UAE employers in the private sector must change unlimited-term employment contracts of their workforce to fixed-term contracts unless they are registered as a Dubai Free Zone or in The Abu Dhabi Global Market.
Failure to update workers contracts will result in a fine or penalty against the company. The exact details of the penalties are still to be announced.
This is a result of the UAE government lifting a three year limit on private employment contracts last October, under the new rules employment contracts must set a defined term, but the new amendments will not set a limit of up to three years anymore, enabling employers to agree the duration of fixed-term contracts with their employees. Businesses that have already put their fixed-term contracts in place may, therefore, wish to further amend their contracts to provide for a longer fixed-term period going forward.
Employers have until 31st December 2023 to ensure that all their employees have been transitioned onto fixed-term employment contracts that are compliant with the UAE’s Labour Law.
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