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Employment Agreement
I need a junior employment agreement for a graduate with 1 year of industry experience, participating in a rotational program to identify expertise matching their skillsets. The agreement should include statutory leave, no stock options, a 6-month probation period with a 1-week notice, followed by a 1-month notice period.
What is an Employment Agreement?
An Employment Agreement forms the legal foundation of your working relationship in the UAE, spelling out the rights and duties between you and your employer. It sets clear terms about your salary, working hours, leave entitlements, and other key conditions that align with UAE Labor Law requirements.
Under UAE regulations, this contract must be written in Arabic (with an English translation if needed) and registered with the Ministry of Human Resources and Emiratisation. It protects both parties by defining important details like probation periods, notice requirements for ending employment, and any post-employment restrictions, helping prevent future disputes and ensuring compliance with local labor standards.
When should you use an Employment Agreement?
Use an Employment Agreement before any new hire starts working in the UAE, from entry-level positions to executive roles. This formal contract becomes essential when bringing on full-time employees, part-time staff, or fixed-term workers, as UAE labor laws require proper documentation of employment terms from day one.
The timing matters most during recruitment - draft and sign the agreement after making a job offer but before the employee's first day. This protects both parties by documenting crucial details like compensation, working hours, and benefits while ensuring compliance with UAE labor regulations. For international hires, complete the agreement before starting visa processes.
What are the different types of Employment Agreement?
- Job Agreement Letter: Basic employment contract suitable for standard full-time positions, covering essential terms and conditions.
- Pre Employment Agreement: Preliminary contract outlining conditions before formal employment begins, often used during probation periods.
- Dual Employment Agreement: Specialized contract for employees working simultaneously for two entities within UAE's regulations.
- Employee Undertaking Agreement: Focuses on specific commitments and responsibilities the employee agrees to uphold.
- Joint Employment Agreement: Used when multiple employers share responsibility for an employee's work arrangement.
Who should typically use an Employment Agreement?
- Employers/Companies: Draft and issue Employment Agreements, ensuring compliance with UAE labor laws and Ministry of Human Resources requirements.
- Employees: Review, negotiate, and sign the agreement before starting work, gaining protection of their rights and clear understanding of duties.
- HR Managers: Oversee agreement preparation, ensure proper documentation, and handle registration with relevant authorities.
- Legal Teams: Review and customize agreements to protect company interests while maintaining UAE labor law compliance.
- Ministry of Human Resources: Registers and validates employment contracts, ensuring they meet local regulatory standards.
How do you write an Employment Agreement?
- Employee Details: Collect full name, Emirates ID, passport details, and qualifications as required by UAE labor laws.
- Position Information: Define job title, department, reporting structure, and detailed responsibilities.
- Compensation Package: Document base salary, allowances, benefits, and any performance-based incentives in AED.
- Work Terms: Specify working hours, leave entitlements, probation period, and notice period requirements.
- Company Policies: Include references to relevant internal policies, confidentiality requirements, and non-compete clauses.
- Document Preparation: Draft in Arabic (with English translation if needed) using our platform's UAE-compliant templates.
What should be included in an Employment Agreement?
- Basic Information: Full names and details of employer and employee, job title, and workplace location per UAE Labor Law.
- Contract Duration: Specify unlimited or fixed-term status, start date, and probation period (if applicable).
- Compensation Terms: Detailed breakdown of salary, allowances, and benefits in UAE currency.
- Working Hours: Daily and weekly schedules, overtime policies, and rest day arrangements.
- Leave Entitlements: Annual, sick, maternity, and other statutory leave provisions.
- Termination Clauses: Notice periods, end-of-service benefits, and grounds for contract termination.
- Governing Laws: Reference to UAE Labor Law and relevant ministerial decisions.
What's the difference between an Employment Agreement and a Contractual Agreement?
An Employment Agreement differs significantly from a Contractual Agreement in several key aspects under UAE law. While both are legally binding documents, they serve distinct purposes and come with different regulatory requirements.
- Legal Framework: Employment Agreements must strictly comply with UAE Labor Law and Ministry of Human Resources regulations, while Contractual Agreements follow general contract law principles with more flexibility.
- Scope and Purpose: Employment Agreements specifically govern employer-employee relationships, including mandatory benefits and protections. Contractual Agreements cover broader business relationships and transactions.
- Registration Requirements: Employment Agreements must be registered with UAE labor authorities and drafted in Arabic. Contractual Agreements typically don't require government registration.
- Termination Rules: Employment Agreements have specific notice periods and end-of-service benefits mandated by law. Contractual Agreements allow parties more freedom in setting termination terms.
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