Employment Agreement for United Arab Emirates

Employment Agreement Template for United Arab Emirates

This is a comprehensive employment agreement template designed for use in the United Arab Emirates, compliant with Federal Decree-Law No. 33 of 2021 (UAE Labor Law). The agreement covers all essential aspects of the employment relationship including appointment terms, duties, compensation, benefits, leave entitlements, and termination provisions, while incorporating specific UAE legal requirements such as end-of-service gratuity calculations and working hours regulations. The document is structured to accommodate both limited and unlimited term contracts and includes provisions for probation periods, medical insurance, and other mandatory benefits under UAE law.

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What is a Employment Agreement?

This Employment Agreement template is designed for use by employers in the United Arab Emirates to formalize employment relationships in compliance with Federal Decree-Law No. 33 of 2021. The document is essential for any new hire or employment relationship modification in the UAE, whether in mainland UAE or free zones. It incorporates mandatory provisions required by UAE labor law, including working hours, leave entitlements, end-of-service benefits, and termination procedures. The agreement can be customized for different employment types (limited or unlimited term) and various position levels while maintaining compliance with local regulations. It's particularly important as UAE law requires written employment contracts, and this template ensures all necessary legal requirements are met while protecting both employer and employee interests.

What sections should be included in a Employment Agreement?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and basis of appointment

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position, employment status (limited/unlimited term), and commencement date

5. Duties and Responsibilities: Main responsibilities, reporting lines, and performance expectations

6. Place of Work: Primary workplace location and potential for travel/relocation

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

8. Probation Period: Length and terms of probation period (maximum 6 months under UAE law)

9. Remuneration and Benefits: Salary structure, allowances, and statutory benefits

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

11. Medical Insurance: Health insurance coverage as per UAE law

12. End of Service Gratuity: Calculation and payment terms as per UAE Labor Law

13. Termination: Notice periods and grounds for termination

14. Confidentiality: Protection of company confidential information

15. Governing Law: UAE law as governing law and jurisdiction

What sections are optional to include in a Employment Agreement?

1. Non-Compete and Non-Solicitation: Restrictions post-employment, typically for senior positions

2. Intellectual Property Rights: For roles involving creative or technical work

3. Commission Structure: For sales positions or roles with variable compensation

4. Remote Working Arrangements: For positions allowing work from home or hybrid working

5. Company Policies: Reference to specific company policies that form part of employment terms

6. Training Requirements: For positions requiring specific training or certifications

7. Share Options/Bonus Schemes: For senior positions with additional incentive schemes

8. Secondment Terms: For employees who may be seconded to other group companies

9. Housing Allowance Terms: Detailed terms if housing allowance is provided

10. Education Allowance: If education allowance for children is provided

What schedules should be included in a Employment Agreement?

1. Schedule 1 - Job Description: Detailed description of role and responsibilities

2. Schedule 2 - Remuneration Details: Breakdown of salary components and benefits

3. Schedule 3 - Company Policies: List of applicable company policies

4. Schedule 4 - Code of Conduct: Company's code of conduct and ethical guidelines

5. Appendix A - Confidential Information: Definition and scope of confidential information

6. Appendix B - Restricted Activities: Details of non-compete and non-solicitation restrictions

7. Appendix C - Benefits Summary: Summary of all benefits and eligibility criteria

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

Agreement Contract

Cost

Free to use
Relevant Industries

Banking and Financial Services

Technology

Healthcare

Real Estate and Construction

Retail and Consumer Goods

Manufacturing

Energy and Utilities

Professional Services

Education

Hospitality and Tourism

Media and Entertainment

Transportation and Logistics

Telecommunications

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Customer Service

Research and Development

Administration

Production

Quality Assurance

Procurement

Business Development

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Manager

Supervisor

Executive

Officer

Coordinator

Specialist

Analyst

Associate

Assistant

Administrator

Technician

Engineer

Sales Representative

Customer Service Representative

Professional Staff

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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