Federal Law No. 33 of 2021 regarding the regulation of labour relations will come into effect from February 2, 2022, Employees in the UAE will soon have the option to sign part time, temporary or flexible contracts besides the regular full time contract. This initiative has been taken to covers various aspects of work life, aimed at enhancing labour market flexibility and attract the best talent.
The new work models are:
1. Full-time employment contract –
Full time employment contracts allows the employees to work on full time basis covers full working days or hours.
2. Part-time employment contract –
Part time employment contracts allows employees to work for limited hours of the total working days or hours.
3. Temporary employment contract –
This refers to the type of work which is done for a specific time period, or on a project basis that ends with its completion.
4. Flexible employment contract –
This refers to the type of work where working hours or days change according to the amount of work and the economic and operational changes with the employer. It gives employees the freedom to work at different times depending on the conditions and work requirements.
5. Any other contracts specified by the Executive Regulations of this Decree-Law.
The executive regulation sets the terms and conditions of employment contracts, as well as the obligations of both the employee and employer, according to each type.
Important key points to keep it in mind while signing new labour contract as per New Labour Law:
- All contracts are now fixed term
- Your new contract may have an automatic renewal clause
- The notice period remains unchanged
Whenever a person is about to sign a contract, it is important to read all sections thoroughly to prevent any miscommunication. Nevertheless, it is especially essential to go through certain clauses of an employment contract with great caution.
- Date of employment
- Role/position
- Probation period
- Working hours
- Compensation breakdown
- Bonuses/shares, if applicable
- Notice period
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What the process for termination under the new labour law if if it is a fixed term contract?
Hi,
1. Read your contract to understand the termination terms and notice period required.
2. Discuss with your employer if you both agree to terminate the contract early.
3. If there’s no agreement, follow the notice period specified in your contract or labor law.
4. Be prepared to pay compensation if you terminate without a valid reason or before completing the notice period.
5. Fulfill any remaining responsibilities, return company property, and settle dues.
6. Put the termination in writing with a termination letter or agreement signed by both parties.
It is best to seek advice from a legal professional or the Ministry of Human Resources and Emiratisation (MOHRE) for specific guidance based on your situation.
What the procedure for termination under the new labour law if if it is a fixed term contract
good day
i wanted to know if now all contracts are fixed and there is no unlimited contract ,
is there a difference between calculating gratuity if a employee resigns or is terminated like it was in unlimited contract
kind regards
As per the New Labour Law, The calculation of gratuity is the same regardless of whether an employee resigns or is terminated. It is based on the length of employment, with 21 days of pay for each year of service within the first five years, and 30 days of pay for each additional year.