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UAE: Changes to regulation on employment contracts announced

Under the new amendments, employment contracts must cover a defined term, which can be renewed subject to an agreement by both parties

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The Ministry of Human Resources and Emiratisation (MoHRE) has announced amendments to the decree-law on the Regulation of Employment Relationship.

Under the new amendments, employment contracts must cover a defined term, which can be renewed subject to an agreement by both parties to a contractual relationship. The law does not set a cap on that term period.

The amendment aims to protect both parties in a balanced way; advances the labour market’s growth and stability; and enhances the UAE’s economic competitiveness.

Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said: “The UAE Government continues to develop regulations and laws that align with what the next 50 years of UAE’s development demand. The laws and regulations support our business environment’s stability and improve its resiliency and attractiveness. The regulations follow the UAE’s advanced developmental model, and its fundamentals and principles that are built on justice, respecting human rights and staying ahead of changes. This guarantees the UAE’s continued progress, stability and pioneering stature.”

Al Awar added: “The new amendments create an advanced ecosystem of mechanisms that boost the ease of doing business, productivity, and resilience within the labour market, while amplifying its attractiveness to the business owners and talents.”

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