Labor Contract Form for United Arab Emirates

Labor Contract Form Template for United Arab Emirates

A UAE Labor Contract Form is a legally mandated employment agreement that complies with UAE Federal Decree-Law No. 33 of 2021 and related ministerial resolutions. This document establishes the formal employment relationship between an employer and employee in the UAE, outlining essential terms and conditions including job responsibilities, compensation, working hours, leave entitlements, and other statutory benefits. The contract must be drafted in Arabic (with optional English translation) and registered with the UAE Ministry of Human Resources and Emiratisation (MOHRE), making it a crucial document for obtaining work permits and residency visas.

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What is a Labor Contract Form?

The UAE Labor Contract Form is a mandatory legal document required for all employment relationships in the United Arab Emirates, as stipulated by UAE Federal Decree-Law No. 33 of 2021. This contract serves as the primary document governing the employer-employee relationship and must be registered with the Ministry of Human Resources and Emiratisation (MOHRE). It is essential for obtaining work permits and residency visas, and includes key information such as salary, benefits, working hours, and job responsibilities. The contract can be either limited or unlimited term and must comply with minimum statutory requirements while protecting both employer and employee rights under UAE law. Recent regulatory changes have introduced additional flexibility in employment arrangements, including provisions for remote work and various employment models, which can be incorporated into the Labor Contract Form as needed.

What sections should be included in a Labor Contract Form?

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

2. Background: Brief context of the employment relationship and agreement to enter into the contract

3. Definitions: Key terms used throughout the contract

4. Job Title and Description: Specific role, responsibilities, and reporting relationships

5. Term of Employment: Contract duration (limited or unlimited term) and probation period details

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

7. Working Hours: Standard working hours, rest periods, and overtime arrangements

8. Remuneration: Basic salary, allowances, payment frequency, and method of payment

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

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

11. End of Service Benefits: Gratuity calculation and payment terms as per UAE labor law

12. Termination: Notice periods and grounds for termination

13. Confidentiality: Protection of employer's confidential information

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

What sections are optional to include in a Labor Contract Form?

1. Non-Compete Clause: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information

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

3. Commission Structure: Details of commission calculations and payments, used for sales roles

4. Remote Working Arrangements: Specific terms for remote or hybrid working arrangements

5. Training Requirements: Mandatory training commitments and associated bonds, if applicable

6. Housing Allowance Terms: Specific terms related to housing benefits, if provided

7. Transportation Allowance: Details of transportation benefits, if provided

8. Performance Bonus Structure: Details of bonus schemes and performance metrics, for eligible positions

What schedules should be included in a Labor Contract Form?

1. Schedule 1 - Detailed Job Description: Comprehensive list of duties, responsibilities, and performance expectations

2. Schedule 2 - Remuneration Structure: Detailed 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 behavior and professional conduct

5. Appendix A - Leave Policy: Detailed procedures for requesting and taking various types of leave

6. Appendix B - Grievance Procedures: Steps for raising and addressing workplace grievances

7. Appendix C - Disciplinary Procedures: Progressive disciplinary measures and 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

Cost

Free to use
Relevant legal definitions
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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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