Sharjah resident Rakhee Mansukhani started Your Résumé Writer way back in 2021
The UAE has extended the deadline for private sector companies to rectify unlimited term employment contracts of their employees to fixed-term ones. The Ministry of Human Resources and Emiratisation (MoHRE) said the new deadline now is December 31, 2023, instead of February 2.
The move will provide enough time for companies to change the contracts. “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.
A new labour law that went into effect in February last year required employers to offer fixed-term contracts to workers. Initially, a three-year cap was specified. However, in October, the ministry removed the cap, stating that the contracts must cover a defined term without specifying a limit.
The contract will remain valid as long as both the employer and the employee agree.
“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 MoHRE said on Monday.
The new labour law also introduces new work models in addition to the full-time scheme. These include remote work, shared jobs, part-time, temporary and flexible employment contracts. Essentially, employees and employers have the flexibility to determine the type of contractual agreement that meets the interests of both parties.
ALSO READ:
Sharjah resident Rakhee Mansukhani started Your Résumé Writer way back in 2021
87 per cent of companies in the country plan to recruit permanent employees, while 19 per cent are seeking temporary contract workers in 2024
Employees are required to be flexible in terms of schedule, as the work hours will be based on business needs
Most employees consider a company's benefits package - travel, child education allowances - before taking on a new role
Those that do not get replaced will need employees to upgrade their skills
MoHRE now has the authority to render a final judgement on any dispute if the value of the claim is not more than Dh50,000
The total number of active companies in DIFC grew to 5,523 in 2023, an increase of 26 per cent year-on-year
52% of UAE employees received salary hikes in 2023, mostly by up to 5%