New contract law uae

  • What is new rule in UAE 2023?

    Effective from the financial year starting on or after June 2023, businesses in the UAE will be subject to corporate tax, which will impose a standard rate of 9 per cent on taxable profits exceeding Dhs375,000.
    Profits up to this threshold will be taxed at a zero percent rate to support small businesses and startups..

  • What is the new contract law in UAE 2023?

    By 1 February 2023, all contracts must have been converted to fixed-term agreements.
    The MOHRE/free zone contract is still necessary.
    However, the MOHRE template contract can now see modifications.
    Therefore, several forms are available according to the type of visa or work arrangement..

  • What is the new gratuity law in UAE 2023?

    Employees who have served 1-3 years in the UAE are entitled to full gratuity pay of 21 days' salary per year.
    Those who have served more than 3 years or between 3-5 years are entitled to two-thirds of their basic salary as gratuity pay..

  • By Ministerial Resolution No. 27 of 2023, the UAE Government has provided an extension by when employers must transition employees from unlimited term contracts to limited term contracts from 1 February 2023 to 31 December 2023.Jan 26, 2023
  • Employees in the UAE receive a gratuity at the end of their contract.
    Those who spend one year or more in continuous service are entitled to this end-of-service benefit.
    The fund will hence allow employees to invest and save their end-of-service gratuities according to various investment options.
  • You can resign after 6 months in a limited contract, but you must know everything Article 120 of the UAE Labour Law says about contract termination.
The new UAE Labour Law, which came into force in February 2022, requires all employees of companies in the private sector (outside of the DIFC and ADGM) to be employed on fixed-term employment contracts. The deadline for transitioning employees onto the requisite fixed-term employment contracts is February 1, 2023.

How will UAE's new labour law affect the private sector?

The new labour law, announced by the UAE, has introduced a raft of amendments and employment reforms that empower employees in the private sector

Private companies and establishments must replace unlimited contracts with three-year fixed-term contracts within a year from tomorrow

What are the details of employment contracts in UAE?

The details of the contract will vary depending on the model of work that the worker has been contracted for – full-time, part-time, temporary or flexible

Here is what Article 8 of the new UAE Labour Law states about employment contracts: 1

What is Article 8 of the new UAE labour law?

Here is what Article 8 of the new UAE Labour Law states about employment contracts: 1

The employer shall enter into an employment contract with the worker, according to the agreed model of work

The new UAE Labour Law, which came into force in February 2022, requires all employees of companies in the private sector (outside of the DIFC and ADGM) to be employed on fixed-term employment contracts. The deadline for transitioning employees onto the requisite fixed-term employment contracts is February 1, 2023.

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