What Type of New Employment Contracts you will sign as per the New UAE Labour Law 2022?

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:

1. All contracts are now fixed term
2. Your new contract may have an automatic renewal clause
3. 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.

1. Date of employment
2. Role/position
3. Probation period
4. Working hours
5. Compensation breakdown
6. Bonuses/shares, if applicable
7. Notice period