2 Year Fixed Term Contract Template for the United Arab Emirates

A 2 Year Fixed Term Contract is a legally binding employment agreement that establishes a working relationship between an employer and employee for exactly two years in the United Arab Emirates. Under UAE Federal Decree-Law No. 33 of 2021, all employment contracts must be fixed-term, making this document essential for any legitimate hiring process in the UAE.

When do you need this document?

You need this contract when hiring employees for positions that require a defined two-year commitment, whether for project-based work, specialized roles, or standard employment arrangements. The UAE's labor law mandates that all employment relationships must be governed by fixed-term contracts, so this document is required for virtually every new hire. It's particularly important when engaging expatriate workers who need employment contracts for visa sponsorship purposes, as the Public Relations Officer (PRO) will require a signed contract to process work permits. You'll also need this document when renewing existing employment relationships that are transitioning from unlimited-term contracts under the previous labor law.

Key legal considerations

Your contract must comply with UAE Federal Decree-Law No. 33 of 2021 and its implementing Cabinet Resolution No. 1 of 2022, which establish minimum employment standards. The agreement must clearly define the employee's basic salary, which cannot be less than the UAE's minimum wage requirements, and specify all allowances including housing, transportation, and other benefits. You must include provisions for annual leave (minimum 30 days), sick leave entitlements, and end-of-service gratuity calculations based on the employee's length of service. The contract should address workplace discrimination and harassment policies as required by Ministerial Resolution No. 27 of 2022, and reference unemployment insurance obligations under Ministerial Resolution No. 46 of 2022. Termination clauses must specify valid grounds for contract termination and notice periods, ensuring compliance with UAE labor protection standards.

Legal requirements in United Arab Emirates

Under UAE law, your employment contract must be written in Arabic or bilingual (Arabic and another language), with Arabic taking precedence in case of disputes. The contract must be registered with the Ministry of Human Resources and Emiratisation (MOHRE) within 60 days of the employee's start date. You must ensure the contract includes specific mandatory clauses covering the employee's job title, workplace location, salary breakdown, working hours (maximum 8 hours per day, 48 hours per week), and overtime compensation rates. For UAE national employees, you must comply with UAE Federal Law No. 7 of 1999 regarding pension and social security contributions. The contract must also specify the probationary period, which cannot exceed six months for fixed-term contracts, and include clear provisions for contract renewal procedures if applicable.