Pursuant to the Federal Decree Law No. 33 of 2021 regarding the New Labour Law, private sector employers are mandated to convert all existing unlimited term employment contracts to limited term contracts by December 31, 2023 instead of the previously stated deadline of February 1, 2023.
In light of the above, we advise all private sector employers to review and, if necessary, amend their existing employment contracts to ensure compliance and avoid any unexpected fines or sanctions. The amendment of the contracts (not new contracts) and in most cases will not affect the expiry date of the labour card, current EID, and visa of the employee. Discover the range of UAE visas.
-General details of the new Limited Contract are listed below:
-Probation remains at a maximum of 6 months
-Notice during probation is 14 days for both parties
-Notice period can be 30, 60, or 90 days
-Employees can terminate the contract at any point if they serve their notice as agreed in their contract
-Renewable every 2 years
-Gratuity is paid at the full rate even if the employee resigns or is terminated
-30 calendar days of annual leave
-Introduction of part-time and flexible work contracts under the Limited Contract
How CBD Can Assist
CBD’s Labour & Immigration team can efficiently and effectively manage and handle the transition of employment contracts for you. Contact us on: enquiries@cbdcorporateservices.com or +971 4551 0677
Timeline:
Up to 3 working days from receipt of signed revised contract and payment.
