Unlimited Employment Contract Template for the United Arab Emirates

An Unlimited Employment Contract is a permanent employment agreement that establishes an ongoing employment relationship in the United Arab Emirates without a predetermined end date. Unlike fixed-term contracts, this agreement continues indefinitely until either party terminates it with proper notice, making it the preferred choice for establishing long-term employment relationships in the UAE private sector.

When do you need this document?

You need an Unlimited Employment Contract when hiring permanent employees for ongoing positions in your UAE business. This contract is essential when establishing employment relationships that are not project-specific or temporary in nature. Companies use this document when building their core workforce, hiring for management positions, or bringing on skilled professionals for long-term roles. It's particularly important when you want to provide employees with job security while maintaining the flexibility to adjust your workforce based on business needs. The contract is also required when sponsoring employees for UAE residence visas, as immigration authorities expect clear documentation of the employment relationship.

Key legal considerations

Several critical legal elements must be addressed in your Unlimited Employment Contract to ensure compliance and protection for both parties. The probation period cannot exceed six months and must be clearly specified, during which either party can terminate with minimal notice. Salary terms must meet UAE minimum wage requirements and specify payment frequency, typically monthly. Notice periods for termination must comply with UAE Labor Law, generally requiring 30 days' notice during probation and longer periods thereafter based on length of service. End of service gratuity calculations must follow statutory formulas, typically 21 days' salary per year for the first five years and 30 days thereafter. The contract must also address annual leave entitlements, sick leave provisions, and working hours limitations as mandated by UAE law.

Legal requirements in United Arab Emirates

UAE Federal Decree-Law No. 33 of 2021 governs all private sector employment contracts and mandates specific provisions that must be included. The contract must be written in Arabic or bilingual Arabic-English format for legal validity. Both parties must sign the agreement, and it must be submitted to the Ministry of Human Resources and Emiratisation for approval and work permit processing. The contract must specify the employee's job title, duties, workplace location, salary, and benefits in accordance with Cabinet Resolution No. 1 of 2022. Health and safety obligations must be incorporated per Ministerial Resolution No. 27 of 2022. For UAE nationals, additional provisions regarding pension contributions under Federal Law No. 7 of 1999 may apply. The contract must also comply with internal work policies and disciplinary measures as outlined in Ministerial Resolution No. 47 of 2022, ensuring comprehensive legal compliance with current UAE employment regulations.