Full Time Employment Contract Template for the United Arab Emirates

A Full Time Employment Contract is a legally binding agreement that establishes the terms and conditions for permanent employment relationships in the United Arab Emirates. This comprehensive document outlines the rights, responsibilities, and obligations of both employer and employee while ensuring compliance with UAE labor laws and regulations.

When do you need this document?

You need a Full Time Employment Contract when hiring permanent employees for positions exceeding 20 hours per week in the UAE. This includes situations where you're establishing new employment relationships, converting temporary workers to permanent status, or hiring expatriate employees who require visa sponsorship. The contract is mandatory for all sectors operating in the UAE, from multinational corporations to small businesses, and is essential for obtaining work permits and residence visas for foreign employees. You'll also need this document when transferring employees between UAE entities or when updating employment terms to reflect promotions or role changes.

Key legal considerations

Your Full Time Employment Contract must include specific mandatory clauses to ensure legal compliance and protect both parties' interests. Essential provisions include detailed job descriptions, salary structures with clear payment schedules, working hours that comply with the maximum 48-hour work week, and comprehensive leave entitlements including annual, sick, and maternity leave. The contract must specify probation periods (maximum 6 months), notice periods for termination, and end of service benefit calculations based on the employee's length of service. Additionally, you must include clauses covering confidentiality, non-compete restrictions (limited to 2 years), intellectual property rights, and disciplinary procedures. The agreement should also address overtime compensation, public holiday entitlements, and any additional benefits such as housing allowances, transportation, or medical insurance.

Legal requirements in United Arab Emirates

Under UAE Federal Decree Law No. 33 of 2021, your employment contract must be written in Arabic, though bilingual versions are acceptable for clarity. The contract must be registered with the Ministry of Human Resources and Emiratisation (MOHRE) and comply with the Wage Protection System (WPS) for salary payments. You're required to provide mandatory unemployment insurance coverage under UAE Federal Decree Law No. 9 of 2022, and ensure pension contributions for UAE national employees under Federal Law No. 7 of 1999. The contract must specify the employee's visa category and sponsor responsibilities, including accommodation standards if provided. Working hours are strictly regulated, with standard working time limited to 8 hours per day and 48 hours per week, with reduced hours during Ramadan. The agreement must include provisions for annual leave (minimum 30 calendar days after one year of service), sick leave, and maternity leave entitlements. Termination clauses must comply with UAE notice requirements and end of service benefit calculations, which vary based on the type of contract (limited or unlimited term) and reason for termination.