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19 May 2024

UAE extends deadline to rectify private sector's unlimited-term employment contracts to fixed-term

Published
By WAM

DUBAI, 30th January, 2023 (WAM) -- The Ministry of Human Resources and Emiratisation (MoHRE) has announced the extension of the deadline for private sector employers to rectify unlimited-term employment contracts of their employees to fixed-term contracts.

The new deadline now is 31st December 2023, instead of 2nd February 2023.

“The decision stems from our belief in enhancing flexibility, competitiveness and ease of business for private sector companies and safeguarding all parties’ rights,” the Ministry said.

“Providing enough time for companies to change the contracts supports labour market; our role is providing all the necessary tools for companies to succeed and flourish; ease of business is definitely an important approach that we adopt in the market. The private sector is a partner in the UAE’s development journey, we value its contributions to the UAE’s GDP. We have recently witnessed the private sector’s achievements in Emiratisation, which significantly helped to raise the overall rates of Emiratisation in the UAE," the Ministry explained.

This decision is based on the Ministry’s Resolution No. 27 of 2023 on the extension of the deadline for rectifying employment contracts, and it comes in implementation of the Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector.

The Decree-Law included amendments to some of its provisions, including fixed-term employment contracts, subject to renewal, based on what is agreed by both parties of the contractual relationship without specifying a limit for the duration of the contract, in line with international practices.