Indefinite Contract Template for the United Arab Emirates

An indefinite contract serves as the foundation for permanent employment relationships in the United Arab Emirates, creating ongoing work arrangements without predetermined end dates. Under Federal Decree-Law No. 33 of 2021, this contract type has become the standard employment agreement, replacing limited-term contracts as the default option for most employment relationships across the Emirates.

When do you need this document?

You need an indefinite contract when hiring permanent employees for ongoing positions in your UAE-based business. This includes scenarios such as recruiting full-time staff for core business functions, onboarding skilled professionals for long-term projects, or converting temporary workers to permanent status after successful probation periods. The contract is essential whether you're hiring UAE nationals or expatriate employees, as it provides the legal framework required for visa processing and work permit applications through the Ministry of Human Resources and Emiratisation.

Key legal considerations

Several critical provisions must be addressed in your indefinite contract to ensure compliance with UAE employment law. The probation period cannot exceed six months and must be clearly specified, during which either party can terminate with minimal notice. Notice periods for termination vary based on the length of service, ranging from 30 days for employees with less than five years of service to 90 days for those with longer tenure. End-of-service benefits calculations must follow the prescribed formula under UAE law, typically providing 21 days of basic salary for each year of service after completing one year of employment. The contract must specify working hours, which generally cannot exceed eight hours per day or 48 hours per week, with provisions for overtime compensation and annual leave entitlements of at least 30 calendar days per year.

Legal requirements in United Arab Emirates

UAE law mandates specific formatting and content requirements for indefinite employment contracts. The agreement must be written in Arabic, though bilingual versions are acceptable provided the Arabic text takes precedence in case of disputes. Both parties must sign the contract, with witness signatures recommended for additional legal protection. Registration with MOHRE is mandatory within 60 days of the employee's start date, and failure to register can result in significant penalties for employers. The contract must include detailed job descriptions, salary breakdowns distinguishing between basic salary and allowances, and clear termination procedures. Additionally, contracts for expatriate employees must align with visa categories and work permit requirements, ensuring the job title and duties match the approved employment authorization from relevant UAE authorities.