12 Months Fixed Term Contract Template for the United Arab Emirates

A 12 Months Fixed Term Contract is your legal foundation for employment relationships in the United Arab Emirates. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), all employment contracts must now be fixed-term with a maximum duration of three years, making this document essential for any hiring process in the UAE mainland.

When do you need this document?

You need this contract whenever you're hiring new employees or converting existing unlimited contracts to comply with current UAE law. It's required for all employment relationships, from entry-level positions to senior management roles. The contract serves multiple purposes: it satisfies MOHRE registration requirements, supports work visa applications with Immigration Authorities, and provides the legal framework for health insurance enrollment as mandated by Dubai and Abu Dhabi health insurance laws.

Key legal considerations

Your contract must include specific mandatory provisions to ensure UAE Labour Law compliance. The salary clause must detail basic salary, allowances, and any benefits, as these directly impact end of service calculations. Working hours must not exceed 8 hours per day or 48 hours per week, with clear overtime provisions. The probation period cannot exceed six months, and you must specify the exact start and end dates of the 12-month term. Health insurance provisions are crucial - employers must provide comprehensive medical coverage meeting minimum benefit requirements. The termination clause should outline notice periods, end of service benefits calculations, and circumstances for contract termination. Include provisions for annual leave (minimum 30 days), sick leave, and maternity leave as stipulated by UAE law.

Legal requirements in United Arab Emirates

UAE Labour Law mandates specific contract registration with MOHRE within 60 days of the employee's entry into the country. Your contract must be submitted in Arabic and English versions, with the Arabic version taking precedence in case of disputes. Cabinet Resolution No. 1 of 2022 requires detailed salary breakdowns and benefit specifications. For Dubai-based contracts, you must comply with Dubai Health Insurance Law No. 11 of 2013, while Abu Dhabi requires adherence to local health insurance regulations. The contract must support work visa applications under UAE Federal Law No. 6 of 1973, including sponsorship obligations and residence permit requirements. End of service benefit calculations must follow the prescribed formula: 21 days' basic salary for each year of service. You're also required to maintain detailed employment records and ensure contract terms align with your company's labour card classification with MOHRE.