‘Is it mandatory for employees to switch to a limited-term contract?’

Query: I have received a new employment contract from my business but it states that I will be on a minimal-expression agreement.

I have usually experienced an limitless deal, so do I have to indication this?

I have read that I don’t have to concur to any alterations and that the employer can only alter my deal with my arrangement.

I really don’t want to be tied to a minimal contract or have to shell out a penalty if I pick to go away. CF, Dubai

Remedy: Modifications to UAE employment regulation arrived into impact in February 2021 with Federal Decree-Regulation No (33) of 2021 — Concerning the Regulation of Employment Marriage.

This designed a selection of variations that impact all UAE employees and businesses, with the exception of two economical absolutely free zones, Dubai Global Economical Centre and Abu Dhabi International Market place, domestic personnel and those people used by the UAE federal government (even though they are likely to observe this law).

Just one of the main variations is that all suitable workforce will switch to minimal-time period contracts.

This is mentioned in Post 8: “The employment contract is concluded for a unique phrase not exceeding a few years and it is permissible, by settlement of both of those get-togethers, to extend or renew this deal for a further related expression or for a shorter expression, for after or additional.”

This has considering the fact that been updated under Federal Decree Legislation No 14 of 2022, issued in October, which eradicated the a few-year cap, thus enabling employers to agree to the period of fastened-expression contracts with their staff.

Nevertheless, in all instances, contracts will be for a said preset time period.

The main change between the former regulation and the new legislation is that there are no for a longer time any penalties for breaking a fastened-time period contract, either for the employer or the employee.

As significantly as most staff members are involved, the new contracts will operate significantly like unlimited kinds.

All businesses ought to update contracts of employment no later on than February 1, 2023, to be certain that they are compliant with the law. The expense of this has to be borne by the employer and are not able to be passed on to personnel.

Any businesses who are unsuccessful to update contracts can be fined and will not be able to receive or maybe even terminate visas until they comply with the law.

View: New UAE labour laws come into impact