Permanent Employment Contract Template for the United Arab Emirates

A Permanent Employment Contract is a legally binding agreement that establishes an unlimited term employment relationship between an employer and employee in the United Arab Emirates. Under Federal Decree Law No. 33 of 2021, this contract type has become the standard for UAE employment, replacing the previous system that primarily relied on fixed-term contracts. You'll use this document to formalize long-term employment arrangements while ensuring full compliance with UAE labor regulations.

When do you need this document?

You need a Permanent Employment Contract when hiring employees for ongoing positions in the UAE, whether for UAE nationals or expatriate workers. This contract is required for all permanent staff positions, from entry-level roles to senior management positions. You'll also need it when converting existing fixed-term employees to permanent status, establishing employment relationships in UAE mainland companies, or hiring staff for free zone entities that opt for UAE labor law coverage. The contract becomes essential when you want to offer job security to valued employees while maintaining flexibility for business operations under the new UAE labor framework.

Key legal considerations

Your contract must include specific mandatory provisions required by UAE law, including a probationary period not exceeding six months for new employees. You need to clearly define the employee's duties, working hours, salary structure, and benefits package in compliance with UAE minimum wage requirements. The contract must specify notice periods for termination, with UAE law requiring minimum notice based on employment duration. End of service gratuity calculations must be included, following the UAE labor law formula of 21 days' salary for each year of service after completion of one year. You should also address overtime compensation, annual leave entitlements of 30 days per year, and sick leave provisions as mandated by UAE regulations.

Legal requirements in United Arab Emirates

Under UAE Federal Decree Law No. 33 of 2021, your employment contract must be written in Arabic or bilingual Arabic-English format and registered with the Ministry of Human Resources and Emiratisation within 60 days of execution. For expatriate employees, the contract links directly to work permit and residence visa requirements under UAE Ministerial Resolutions No. 46 and 47 of 2022. You must ensure the contract includes provisions for UAE national employees' social security contributions under Federal Law No. 7 of 1999. Free zone employers may choose between UAE labor law or free zone employment regulations, but this choice must be clearly stated in the contract. The agreement must comply with UAE working hour limits of 48 hours per week, with reduced hours during Ramadan, and include provisions for public holidays as defined by UAE federal and emirate-specific calendars.