Contractual Employee Contract for United Arab Emirates

Contractual Employee Contract Template for United Arab Emirates

A comprehensive employment agreement governed by UAE labor law (Federal Decree-Law No. 33 of 2021) that establishes a fixed-term contractual relationship between an employer and employee. This document outlines the terms and conditions of employment, including duties, compensation, benefits, working hours, leave entitlements, and termination provisions, while ensuring compliance with UAE statutory requirements. The contract incorporates mandatory provisions required by UAE labor law, addresses end of service benefits, and includes specific clauses related to UAE workplace regulations and cultural considerations.

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What is a Contractual Employee Contract?

The Contractual Employee Contract is a fundamental document used in the United Arab Emirates to establish a fixed-term employment relationship between organizations and their employees. This contract type, introduced under UAE Federal Decree-Law No. 33 of 2021, replaced the unlimited term contracts previously common in the UAE market. The document serves as a legally binding agreement that defines the employment relationship's duration, terms, and conditions while ensuring compliance with UAE labor laws. It is particularly relevant for new hires, contract renewals, and employment relationship modifications, providing both parties with clear understanding of their rights, obligations, and the fixed duration of their commitment. The contract must be registered with relevant authorities and includes provisions specific to UAE employment regulations, such as end of service benefits, working hours, and leave entitlements.

What sections should be included in a Contractual Employee Contract?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract defined for clarity

4. Appointment and Term: Position title, employment type (unlimited/limited term), commencement date, and probation period if applicable

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

6. Place of Work: Primary workplace location and any flexibility arrangements

7. Working Hours: Standard working hours, days, and overtime provisions as per UAE labor law

8. Remuneration and Benefits: Base salary, allowances, bonuses, and other benefits including medical insurance

9. Leave Entitlements: Annual leave, public holidays, sick leave, and other statutory leave provisions

10. Confidentiality: Obligations regarding company confidential information and trade secrets

11. Intellectual Property: Ownership and rights related to work created during employment

12. Non-Competition and Non-Solicitation: Post-employment restrictions in accordance with UAE law

13. Termination: Grounds for termination, notice periods, and end of service benefits

14. Governing Law: Confirmation of UAE law application and dispute resolution procedures

15. General Provisions: Standard contractual clauses including amendments, entire agreement, and severability

What sections are optional to include in a Contractual Employee Contract?

1. Mobility Clause: Required when the role may involve travel or relocation within UAE or internationally

2. Commission Structure: For sales or commission-based roles, detailing commission calculations and payment terms

3. Housing Allowance: When accommodation or housing allowance is provided, specifying terms and conditions

4. Education Allowance: When education benefits for employees' children are provided

5. Remote Working: For positions allowing work from home or remote locations

6. Share Options/Benefits: When employee is eligible for company share schemes or equity participation

7. Secondment Terms: For employees who may be seconded to other group companies or locations

8. Training Obligations: When specific training requirements or bonds are applicable

What schedules should be included in a Contractual Employee Contract?

1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities, requirements, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and payment structure

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Benefits Package: Detailed description of all benefits, insurance coverage, and eligibility criteria

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

7. Appendix C - Grievance Procedures: Process for raising and addressing workplace grievances

8. Appendix D - Performance Review Framework: Performance evaluation criteria and review process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Financial Services

Healthcare

Education

Construction

Real Estate

Retail

Hospitality

Manufacturing

Professional Services

Media and Entertainment

Transportation and Logistics

Energy and Utilities

Telecommunications

Consumer Goods

Aviation

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Engineering

Product Development

Business Development

Quality Assurance

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Project Manager

Software Developer

Financial Analyst

HR Specialist

Marketing Manager

Sales Representative

Operations Manager

Research Scientist

Teacher

Accountant

Legal Counsel

Administrative Assistant

Customer Service Representative

Business Development Manager

Technical Consultant

Design Engineer

Product Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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