Employment Contract Requirements in Dubai: A Comprehensive Legal and Compliance Guide for UAE Employers

Employment Contract Requirements in Dubai: A Comprehensive Legal and Compliance Guide for UAE Employers (2025)

Estimated reading time: 18 minutes

Key Takeaways

• Federal Decree-Law No. 33 of 2021 (as amended) is the cornerstone of private-sector labour relations in Dubai.
• All contracts must be fixed-term, in writing, and registered with MOHRE.
• Mandatory contract particulars include employer licence details, employee identity, job description, salary structure, working hours, leave entitlements, notice period, and end-of-service gratuity.
• The shift from unlimited contracts to fixed-term agreements impacts renewals, tacit extensions, and termination rights.
• Integrate visa sponsorship requirements under Federal Decree-Law No. 29 of 2021 with employment documentation.
• Maintain a robust labour law compliance checklist and an employee handbook aligned with UAE legislation.

1. Introduction

The modern private-sector labour regime in the UAE is anchored in Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, as amended by Decree-Law No. 9 of 2024, Amending Some Provisions of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, which amendments came into effect on 31 August 2024, and its Executive Regulations. This framework, in force since 2 February 2022, repealed Federal Law No. 8 of 1980 and introduced mandatory fixed‒term contracts, updated leave and notice entitlements, and enhanced compliance under the supervision of the Ministry of Human Resources and Emiratisation (MOHRE).

In practice, a properly drafted fixed-term employment contract is the primary legal instrument governing rights, obligations, and visa sponsorship. Non-compliance risks administrative sanctions, penalties, and complications in work-permit and visa processes.

2. The UAE Employment-Law Framework

The core statute is Federal Decree-Law No. 33 of 2021, amended by Decree-Law No. 20 of 2023 and No. 9 of 2024. It requires all private-sector contracts to be fixed-term and applies to mainland Emirates under MOHRE, while certain free zones (e.g., DIFC, ADGM) operate under distinct employment laws.

The Executive Regulations detail mandatory contract contents, probation limits, non-competition criteria, work models, and leave calculations. Employers must map which employees fall under MOHRE vs zone-specific regimes.

3. Mandatory Employment Contract Requirements

Under MOHRE jurisdiction, every contract must:

• Be in writing, specify a fixed term, and be registered electronically.
• Include employer’s trade name, licence number, and address.
• Detail employee’s name, nationality, passport/ID numbers.
• Specify job title, duties, work location, start date, term, and probation (max 6 months).
• Outline salary, allowances, WPS payment, working hours, rest days, holidays, and leave entitlements.
• Set a notice period compliant with notice period requirements under United Arab Emirates Labour Law.
• Describe end-of-service gratuity calculation per Article 51.

Additional lawful clauses (confidentiality, IP, data protection, non-competition) may be included provided they do not reduce statutory rights.

4. Fixed-Term Contracts and the Abolition of Unlimited Contracts

MOHRE no longer recognises new unlimited-term contracts. All mainland private-sector contracts must be fixed-term, with flexibility on duration. Unlimited-term employment contracts concluded before the entry into force of Federal Decree-Law No. 33 of 2021 were required to be corrected into fixed-term employment contracts within one year from the law’s effective date, subject to any ministerial extension permitted under Article (68) of Federal Decree-Law No. 33 of 2021.

Renewals and tacit extensions count as continuous service for gratuity and other entitlements.

5. Notice Period Requirements under UAE Labour Law

Article 33 of Federal Decree-Law No. 33 of 2021 specifies that the notice period for termination of a fixed-term employment contract must be agreed by the parties, provided that it is not less than thirty days and not more than ninety days; any provision to the contrary is void. During probation (maximum duration of 6 months), employers must give 14 days’ notice; employees changing sponsor must give a 30 days’ notice.

Any contractual clause below statutory minima is void and replaced by the law.

6. Visa Sponsorship Legal Requirements

Expatriate employment is governed by Federal Decree-Law No. 29 of 2021 and Cabinet Resolution No. 65 of 2022. Employers must secure work permits, entry permits, medical fitness, Emirates ID registration, and residence visas within specified timeframes.

Non-compliance can lead to fines, suspension of permits, sponsorship bans, or criminal liability.

7. Labour Law Compliance Checklist for UAE Employers

• Pre-hiring: confirm valid licence, MOHRE or free-zone registration, candidate eligibility, no immigration bans.
• Contract drafting: use approved templates, register within timelines, record amendments.
• Payroll & WPS: reconcile payroll with contracts, timely salary payment through WPS, retain reports.
• Record-keeping: maintain contracts, attendance, leave records, appraisals, disciplinary files, gratuity calculations.
• Health & safety: comply with occupational safety laws, anti-discrimination, whistle-blowing mechanisms.
• Leave & benefits: track annual, sick, maternity, paternity, bereavement, Hajj leave; calculate and pay gratuity on termination.
• Inspections: conduct internal audits, train staff, escalate non-compliance.

8. Employee Handbook Template UAE

An effective handbook should:

• Clarify its purpose and legal status; defer to individual contracts and law on conflict.
• Outline recruitment, equal-opportunity, and fixed-term contract model.
• Detail code of conduct, confidentiality, and anti-harassment policies.
• Explain working hours, attendance, overtime, and all leave types.
• Describe compensation, allowances, WPS, and termination benefits.
• Cover health & safety procedures and PPE requirements.
• Summarise visa sponsorship steps under visa sponsorship legal requirements.
• Set out disciplinary, performance-management, notice, and appeal processes.
• Include forms, acknowledgements, and handbook receipt confirmations.

9. Practical Implications and Recommendations for Employers in Dubai

• Audit existing contracts for fixed-term registration; prioritise senior and long-serving staff.
• Update contract templates with mandatory clauses and best-practice provisions.
• Implement a tailored labour law compliance checklist with clear accountabilities.
• Invest in HRIS systems to track contracts, visas, WPS, leave, and gratuity accruals.
• Train managers on contract terms, WPS, MOHRE processes, and immigration requirements.
• Maintain ongoing legal support for contract reviews, restructurings, and labour disputes.

10. Conclusion

The UAE’s reformed labour and immigration laws demand that private-sector employment relationships be documented as fixed-term contracts, registered with the competent authorities, and managed in line with statutory minima on working conditions, leave, notice, and end-of-service benefits. HR professionals and legal teams must embed these obligations within integrated systems—contracts, handbooks, compliance checklists, payroll, and immigration processes—to mitigate risk and foster transparent employment relationships in Dubai’s competitive market.

FAQs

1. What are the mandatory elements of an employment contract in Dubai?

Every contract must be in writing, fixed-term, and registered with MOHRE. It must include employer licence details, employee identity, job description, salary and allowances, working hours, leave entitlements, notice period (30-90 days), and end-of-service gratuity calculation.

2. Can employers still use unlimited-term contracts?

No. As of 2 February 2022, MOHRE-regulated private-sector contracts must be fixed-term. Legacy unlimited contracts had to be converted by 31 December 2023 under Ministerial Resolution No. 27 of 2023.

3. How are notice periods governed under UAE Labour Law?

Notice periods must be between 30 and 90 days for fixed-term contracts. During a maximum 6-month probation, employers must give 14 days’ notice; employees changing employer require 30 days’ notice.