Permanent Employment Contract for United Arab Emirates

Permanent Employment Contract Template for United Arab Emirates

A comprehensive employment agreement compliant with UAE Federal Decree Law No. 33 of 2021, establishing an unlimited term employment relationship between an employer and employee in the United Arab Emirates. This contract outlines all essential terms and conditions of employment including duties, compensation, benefits, working hours, leave entitlements, and termination provisions, while ensuring compliance with local labor laws and regulations. The document incorporates mandatory provisions required by UAE law while allowing flexibility to accommodate specific employment terms and company policies.

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What is a Permanent Employment Contract?

This Permanent Employment Contract template is designed for use in the United Arab Emirates, specifically complying with Federal Decree Law No. 33 of 2021 and its implementing regulations. It is intended for establishing long-term employment relationships under an unlimited term contract, which is now the standard form of employment in the UAE following recent legislative changes. The document should be used when hiring permanent employees in the UAE, whether they are UAE nationals or expatriates, and must be registered with the relevant authorities. It contains all mandatory provisions required by UAE labor law, including terms of employment, probationary period, notice periods, and end of service benefits, while allowing customization for specific roles and company requirements.

What sections should be included in a Permanent Employment Contract?

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

2. Background: Brief context of the employment relationship and agreement purpose

3. Definitions: Key terms used throughout the contract

4. Appointment and Term: Position title, department, commencement date, and unlimited term nature of the contract

5. Probationary Period: Duration and terms of the probationary period (maximum 6 months under UAE law)

6. Duties and Responsibilities: Main responsibilities, reporting lines, and performance expectations

7. Place of Work: Primary workplace location and potential for temporary relocation

8. Working Hours: Standard working hours, rest periods, and overtime provisions

9. Remuneration: Basic salary, payment frequency, and method of payment

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

11. Medical Insurance: Health insurance coverage as per UAE law requirements

12. Confidentiality: Protection of company confidential information and trade secrets

13. Intellectual Property: Ownership of work products and innovations

14. Termination: Notice periods and grounds for termination

15. End of Service Benefits: Calculation and payment of gratuity and other terminal benefits

16. Governing Law: Application of UAE law and jurisdiction

What sections are optional to include in a Permanent Employment Contract?

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

2. Housing Allowance: Terms of housing allowance if provided, including payment structure and conditions

3. Transportation Allowance: Details of transportation benefits if provided

4. Commission Structure: For sales or commission-based roles, detailing commission calculations and payment terms

5. Remote Working Provisions: Terms and conditions for remote work arrangements if applicable

6. Education Allowance: Terms of education allowance for employees' children if provided

7. Performance Bonus: Structure and conditions of performance-based bonuses

8. Share Options/Employee Stock Ownership: Terms of any share-based compensation schemes

9. Relocation Provisions: Terms for international hires including relocation support and repatriation

10. Training Obligations: Specific training requirements and associated bonds or commitments

What schedules should be included in a Permanent Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: 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 professional behavior and ethics

5. Appendix A - Reporting Structure: Organizational chart showing reporting relationships

6. Appendix B - Benefits Summary: Detailed overview of all employee benefits and eligibility conditions

7. Appendix C - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Technology

Healthcare

Retail

Manufacturing

Construction

Education

Professional Services

Hospitality and Tourism

Energy and Utilities

Media and Entertainment

Real Estate

Telecommunications

Transportation and Logistics

Consumer Goods

Government and Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Administration

Business Development

Product Management

Quality Assurance

Facilities Management

Supply Chain

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Technical Specialist

Sales Executive

Administrative Assistant

Human Resources Manager

Financial Analyst

Software Developer

Marketing Manager

Operations Manager

Research Analyst

Customer Service Representative

Business Development Manager

Legal Counsel

Account Manager

Industries
Teams

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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