Fixed Term Employment Contract for United Arab Emirates

Fixed Term Employment Contract Template for United Arab Emirates

A comprehensive employment agreement that establishes a fixed-term employment relationship under UAE labor law (Federal Decree-Law No. 33 of 2021). This contract specifies all essential terms of employment including duration, compensation, benefits, and working conditions, while ensuring compliance with UAE's mandatory labor provisions. It incorporates recent UAE labor law reforms, including provisions for equal pay, anti-discrimination, and flexible working arrangements where applicable. The contract provides clear terms for termination, end of service benefits, and other statutory entitlements specific to UAE employment law.

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What is a Fixed Term Employment Contract?

The Fixed Term Employment Contract is designed for use in the United Arab Emirates where, under the new labor law regime (Federal Decree-Law No. 33 of 2021), all employment contracts must be fixed-term with a maximum duration of three years. This document serves as a comprehensive agreement between employers and employees, incorporating all mandatory provisions required by UAE labor law while allowing for customization based on specific employment terms. It's particularly relevant following the UAE's 2022 labor law reforms, which mandate fixed-term contracts for all employment relationships. The contract includes essential elements such as probation periods, notice requirements, end of service benefits calculation, and working hours, all aligned with current UAE labor regulations. This template should be used for all new hires and when converting existing unlimited term contracts to fixed-term contracts as required by UAE law.

What sections should be included in a Fixed Term Employment 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 confirmation of employee's qualifications and fitness for the role

3. Definitions: Key terms used throughout the contract, including defined terms from UAE Labor Law

4. Term and Commencement: Specific start date and duration of the fixed-term contract (maximum 3 years under UAE law)

5. Role and Duties: Job title, description, responsibilities, and reporting relationships

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours and Days: Standard working hours, days, and rest periods in compliance with UAE labor law

8. Remuneration and Benefits: Basic salary, allowances, and other benefits including payment frequency and method

9. Annual Leave: Annual leave entitlement and rules for taking leave

10. Sick Leave: Sick leave entitlements and notification requirements

11. Other Leave Entitlements: Other statutory leaves including maternity, paternity, and study leave

12. Probationary Period: Duration and terms of probation period (if applicable, maximum 6 months)

13. Confidentiality: Obligations regarding confidential information and trade secrets

14. End of Service Benefits: Calculation and payment of gratuity and other end of service entitlements

15. Termination: Grounds and procedures for contract termination, notice periods, and consequences

16. Governing Law: Confirmation of UAE law application and jurisdiction

What sections are optional to include in a Fixed Term Employment Contract?

1. Non-Competition: Post-employment restrictions, used when employee has access to confidential information or client relationships

2. Intellectual Property: IP ownership and assignment provisions, relevant for creative or technical roles

3. Commission Structure: Detailed commission terms for sales or similar roles

4. Remote Working: Terms for remote work arrangements if applicable

5. International Travel: Travel requirements and arrangements for roles requiring international travel

6. Training Obligations: Training requirements and associated commitments, including potential training cost recovery

7. Housing Allowance Terms: Detailed terms regarding housing allowance if provided

8. Performance Bonus: Structure and conditions of performance-based bonuses

9. Share Options/Plans: Terms of any share option or equity participation schemes

What schedules should be included in a Fixed Term Employment Contract?

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

2. Schedule 2 - Remuneration Structure: Breakdown of salary components, allowances, and benefits

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

4. Schedule 4 - Code of Conduct: Expected standards of professional behavior and ethics

5. Appendix A - Grievance Procedures: Process for raising and resolving workplace grievances

6. Appendix B - Disciplinary Procedures: Steps and procedures for disciplinary actions

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

Banking and Financial Services

Technology

Healthcare

Construction

Real Estate

Retail

Manufacturing

Education

Professional Services

Hospitality

Energy

Telecommunications

Media and Entertainment

Transportation and Logistics

Consumer Goods

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Talent Acquisition

People Operations

Employee Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Technical Specialist

Sales Executive

Administrative Assistant

Human Resources Manager

Marketing Manager

Operations Manager

Software Developer

Account Manager

Research Analyst

Customer Service Representative

Business Development Manager

Legal Counsel

Financial Analyst

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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