Permanent Contract Template for the United Arab Emirates

A Permanent Contract is the foundation of unlimited-term employment relationships in the United Arab Emirates. Unlike fixed-term contracts, this agreement establishes an ongoing employment arrangement without a predetermined end date, providing both employers and employees with long-term security and stability. Under Federal Decree-Law No. 33 of 2021, these contracts must contain specific mandatory provisions and be registered with the Ministry of Human Resources and Emiratisation.

When do you need this document?

You need a Permanent Contract when establishing long-term employment relationships in the UAE. This includes hiring for senior management positions, specialized technical roles, or any position where you want to offer job security without time limitations. The document is essential when recruiting UAE nationals for permanent positions, hiring expatriates for ongoing roles that extend beyond project timelines, or converting fixed-term employees to permanent status. Companies expanding their UAE operations also require these contracts to build stable, long-term teams that comply with local employment laws.

Key legal considerations

Your Permanent Contract must include several critical provisions to ensure legal compliance and protect both parties' interests. The probation period cannot exceed six months for most positions, during which either party can terminate the contract with minimal notice. You must specify working hours, which cannot exceed eight hours per day or 48 hours per week, with provisions for overtime compensation. The contract must detail annual leave entitlements, sick leave provisions, and maternity/paternity leave rights. End of service benefits calculations must be clearly outlined, including gratuity payments based on length of service. Termination clauses should specify notice periods, valid reasons for dismissal, and procedures for dispute resolution. Non-compete clauses, if included, must be reasonable in scope and duration.

Legal requirements in United Arab Emirates

Under UAE labor law, your Permanent Contract must be written in Arabic, though bilingual versions are acceptable if the Arabic version takes precedence in disputes. The contract requires registration with MOHRE within 60 days of commencement, and failure to register can result in penalties. For expatriate employees, the contract must align with work permit and residence visa requirements processed through the Public Relations Officer (PRO). UAE nationals are entitled to specific benefits including social security contributions under Federal Law No. 7 of 1999. The contract must comply with Ministerial Resolution No. 1 of 2022 regarding implementing regulations, including specific formatting requirements and mandatory clauses. Recent labor law reforms emphasize flexible working arrangements, so your contract should address remote work options, flexible hours, and part-time arrangements where applicable. All salary and benefit details must be clearly specified to avoid disputes and ensure compliance with minimum wage requirements.