Employment Contract UAE: Essential Guide to Drafting, Review, and Labour Complaint Resolution

Employment Contract UAE: From Drafting & Review to Labour Complaint Resolution

Estimated reading time: 12 minutes

Key Takeaways

• Understand the scope and impact of Federal Decree-Law No. 33 of 2021 and its implementing resolutions.
• Learn mandatory and recommended clauses for a compliant employment contract UAE.
• Follow a practical checklist to spot red flags during an employment contract review Dubai.
• Navigate MOHRE’s dispute-resolution process and know when to file a labour complaint Dubai.
• Explore alternative dispute resolution and engage a specialist labour dispute lawyer effectively.

Introduction: The Importance of a Robust Employment Contract UAE

A robust employment contract UAE is the legal bedrock of every private-sector employer-employee relationship. Governed by Federal Decree-Law No. 33 of 2021 (effective from 2 February 2022) and supplemented by Cabinet Resolution No. 1 of 2022 and Ministerial Resolution No. 279 of 2022, it defines rights, obligations, and remedies. These regulations are administered and enforced by the Ministry of Human Resources and Emiratisation (MOHRE). An up-to-date contract ensures compliance, delineates entitlements, and minimizes disputes, especially in hubs like Dubai. Without timely updates, parties risk fines and unenforceable rights.

Legal Framework Governing Employment Contracts in the UAE

Federal Decree-Law No. 33 of 2021 and Current Implementation

Effective 2 February 2022, Federal Decree-Law No. 33 of 2021 governs all private-sector employment, as amended by Federal Decree-Law No. 20 of 2023, and the Executive Regulations (Cabinet Resolution No. 1 of 2022). It mandates written contracts, sets standards for hours, pay, leave, and dispute resolution. Key changes include the abolition of unlimited-term contracts, fixed-term model (max three years), flexible work arrangements, and enhanced worker protections. These apply across Emirates except DIFC/ADGM.

Cabinet Resolution No. 1 of 2022 and Ministerial Resolutions

Cabinet Resolution No. 1 of 2022 sets out templates and detailed standards: probation limits, notice periods, remote work structures, overtime calculations, leave entitlements, and MOHRE’s complaint procedures. For a practical guide, see Labour Law Dubai Guide 2025.

Ministerial Resolution No. 279 of 2022 sets Emiratisation monitoring/penalties for private-sector establishments.

Drafting an Employment Contract UAE: Mandatory & Recommended Clauses

Identification and Classification Clauses

• Parties: full legal trade name, employee’s name, passport and Emirates ID
• Position: job title, classification, detailed description and KPIs
• Contract Type & Term: fixed-term (max three years), renewal by mutual consent

Probation, Working Hours, and Leave

• Probation: Max 6 months; employer termination needs 14 days’ notice; employee moving to another UAE employer must give 1 month’s notice (new employer may reimburse recruitment costs); leaving the UAE requires 14 days’ notice.
• Working Hours: Max 8 hrs/day, 48 hrs/week; during Ramadan, private-sector daily hours are reduced by 2 under MOHRE announcements.
• Annual Leave: 30 days per year.
• Sick Leave: up to 90 days (15 days full, 30 days half, 45 days unpaid)
• Parental & Special Leave: maternity 60 days, paternity 5 days, study 10 days, bereavement up to 5 days

Remuneration and Allowances

• Basic Salary in AED (skilled workers ≥ 4,000 AED/month). For MOHRE professional/skill-level classification, minimum monthly salary is AED 4,000; this is not a universal minimum wage.
• Allowances: housing, transport, education
• Overtime pay is at least +25% of the hourly wage; +50% for hours 10pm–4am (certain shift-work exceptions). Work on a weekly rest day requires either a substitute rest day or pay +50%.
• End-of-Service Gratuity: 21 days/year (first 5 years), 30 days thereafter, Capped at 2 years’ basic wage (Article 51(6)) – see Employee Rights UAE Guide
• Wage Protection System mandatory for mainland

Protective Covenants

• Confidentiality: define scope, survival period
• Non-competition: max two years, UAE-only, reasonable scope, ≤ 2 years from termination. Enforceability remains fact-specific
• Intellectual Property: assign to employer – see UAE IP Law 2025
• Data Protection: Federal Decree-Law No. 45 of 2021 (PDPL) and its executive framework under the UAE Data Office.

Termination and Notice

• Notice Period: 30–90 days
• Summary Dismissal Grounds per Article 44 – details at Article 44 Guide
• Severance: statutory formula, transparency

Reference to Company Policies

Incorporate by reference the employee handbook, code of conduct, anti-harassment, and remote-work guidelines. State that employees comply with policies “as amended.”

Employment Contract Review Dubai: A Practical Checklist

Ensuring Compliance and Identifying Red Flags

Legal Compliance:

• Cross-check clauses against Federal Decree-Law No. 33/2021 and resolutions
• Verify Cabinet Resolution No. 1 of 2022 and Ministerial Resolution No. 279 of 2022
• Confirm alignment with Decree-Law 20/2023 amendments and the Executive Regulations
• Align with MOHRE circulars and guidelines

Red Flags:

• Vague job descriptions without KPIs
• Unilateral amendment clauses
• Overbroad non-competes
• Omitted WPS clause
• Missing statutory entitlements
• Probation clauses that omit employee 1-month notice when moving to a new employer

Best Practices:

• Use MOHRE templates as a base
• Maintain version control and audit trails
• Commission annual legal audits
• Obtain written acknowledgment for amendments

Aligning Company Policies with Employment Contracts

HR Policy Framework

Policies on attendance, appraisals, discipline, grievances, and remote work must reflect Federal Decree-Law No. 33/2021 and MOHRE directives. Firms with 50+ employees need written grievance and disciplinary procedures.

Consistency and Document Control

Cross-reference policies to contract clauses. Version-control changes, archive prior versions, and secure employee acknowledgments.

Labour Complaint Dubai: Navigating MOHRE Dispute Resolution

When to File a Labour Complaint Dubai

File for unpaid wages, wrongful termination, discrimination, non-compliance with leave/hours, or unsafe conditions within statutory periods.

Step-by-Step MOHRE Procedure

1. Submission via MOHRE app, website, or Tawafuq centers, and MOHRE first seeks amicable settlement before court referral
2. Documentation: contract, payslips, correspondence, policies
3. Mediation by MOHRE conciliation
4. Escalation to Labour Court if unresolved

Outcomes

• Amicable settlement (binding MOHRE resolution)
• MOHRE compliance directive
• Court referral for adjudication

Engaging a Labour Dispute Lawyer

Added Value of Specialist Legal Representation

A MOHRE dispute lawyer drafts compliant claims, represents clients in mediation and court, and negotiates settlements amid complex procedures. Learn more.

Choosing the Right Lawyer

• Credentials: licensed for UAE courts
• Experience: proven labour disputes track record
• Sector expertise: industry-specific insights
• Approach: transparent billing and clear advice

Scope of Service

Contract/document review, MOHRE filings, mediation/court representation, settlement enforcement.

Alternative Dispute Resolution in the UAE Workplace

Mediation

Before filing in labour court, MOHRE conducts conciliation (Tawafuq). Outside MOHRE, court-annexed mediation is available at Dubai Courts’ Centre for Amicable Settlement of Disputes (CASD) and ADJD Mediation & Conciliation Centres. Mediation/conciliation is now codified under Federal Decree-Law No. 40 of 2023..

Arbitration

Arbitration is governed by Federal Law No. 6 of 2018, as amended by Federal Decree-Law No. 15 of 2023; check institutional rules (e.g., DIAC).

Comparison & Suitability

• Mediation/Arbitration: confidentiality, speed, flexibility
• MOHRE: cost-effective, established procedures

Illustrative Scenarios & Lessons Learned

Scenario 1: Contract Review to Avoid Gratuity Disputes

A Dubai tech firm identified conflicts in gratuity calculations and amended contracts proactively, ensuring compliance and eliminating disputes.

Scenario 2: Successful Labour Complaint with MOHRE Dispute Lawyer

An employee wrongfully terminated after safety complaints engaged a lawyer, secured mediation benefits, compensation, and a reference letter.

Key Lessons:

• Proactive reviews prevent disputes
• Timely legal intervention maximizes recovery
• Strict documentation and procedure adherence

Conclusion & Practical Action Points

• Draft and review contracts per Federal Decree-Law No. 33/2021 and resolutions
• Align contracts with company policies consistently
• Conduct regular compliance audits and updates
• Engage qualified legal advisors for complex disputes
• Use MOHRE channels for dispute resolution
• Document all employment decisions and communications

Frequently Asked Questions

Can an employer unilaterally amend an employment contract?

No. Any unilateral amendment clause is void. Amendments require mutual agreement and written acknowledgment.

How do I file a labour complaint in Dubai?

Submit your complaint via the MOHRE app, website or Tawafuq centres, attaching your contract, payslips, and relevant documents.

What protections exist during the probation period?

Probation is capped at six months and non-renewable. Either party may terminate with a 14-day notice. However an employee moving to another UAE employer must give a 1 month notice.

When should I engage a MOHRE dispute lawyer?

For complex cases, significant claims, procedural guidance, or when mediation is unlikely to resolve the dispute amicably, or where Article 44 ‘without-notice’ dismissal is alleged..