UAE Employment Contract Guide: Requirements, Types & Templates 2025
Complete guide to UAE employment contracts including fixed-term requirements, MOHRE registration, mandatory clauses, salary breakdown, probation terms, and contract templates.
Quick Summary: Complete guide to UAE employment contracts including fixed-term requirements, MOHRE registration, mandatory clauses, salary breakdown, probation terms, and contract templates.
Since February 2022, all UAE employment contracts must be fixed-term (maximum 3 years, renewable). The contract must be registered with MOHRE for mainland companies or the relevant free zone authority.
This guide covers contract requirements, mandatory clauses, templates, and DIFC-specific provisions.
| Aspect | Details |
|---|---|
| Legal Basis | Federal Decree-Law No. 33/2021 |
| Contract Type | Fixed-term only (since Feb 2022) |
| Maximum Duration | 3 years (renewable) |
| Language | Arabic (official), English common |
| Registration | MOHRE mandatory |
UAE Employment Contract Basics
2022 Law Changes
| Old Law (Pre-Feb 2022) | New Law (Post-Feb 2022) |
|---|---|
| Limited and unlimited contracts | Fixed-term only |
| Unlimited = ongoing | All contracts have end date |
| Different termination rules | Unified rules |
Current Contract Types
| Type | Duration | Renewal |
|---|---|---|
| Fixed-term | Up to 3 years | Renewable |
| Part-time | As agreed | Per contract |
| Temporary | Project-based | Upon completion |
| Flexible | Variable hours | Per agreement |
Mandatory Contract Elements
Required Elements
| Element | Details |
|---|---|
| Employer name | Legal entity name, address |
| Employee name | Full legal name |
| Nationality | Employee's nationality |
| Emirates ID | Number |
| Job title | Official position |
| Job description | Key responsibilities |
| Start date | Employment commencement |
| Contract duration | Up to 3 years |
| Work location | Place of work |
| Working hours | Per week/day |
| Salary | Full breakdown |
| Probation period | If applicable (max 6 months) |
| Leave entitlement | Annual, sick, etc. |
| Notice period | For termination |
Recommended Elements
| Element | Purpose |
|---|---|
| Allowance breakdown | Transparency |
| Benefits details | Clear entitlements |
| Confidentiality clause | Protect business |
| Non-compete | If applicable |
| Dispute resolution | Process |
Contract Types
Part-Time Contract
| Element | Details |
|---|---|
| Hours | Less than 48/week |
| Benefits | Pro-rata |
| WPS | Required |
| Multiple employers | Allowed with permit |
Temporary/Project Contract
| Element | Details |
|---|---|
| Duration | Project-based |
| End trigger | Project completion |
| Notice | Per contract |
| Benefits | Pro-rata |
Free Zone vs Mainland
| Aspect | Mainland | Free Zone |
|---|---|---|
| Registration | MOHRE | Zone authority |
| Template | MOHRE standard | Zone template |
| Law | Federal Labor Law | Federal + Zone rules |
| Disputes | MOHRE, then courts | Zone, then courts |
Key Contract Clauses
Compensation Clause
| Include | Why |
|---|---|
| Basic salary | Gratuity calculation base |
| Each allowance | Transparency |
| Total amount | Clarity |
| Payment method | WPS requirement |
Probation Clause
| Element | Requirement |
|---|---|
| Duration | Maximum 6 months |
| Notice (employee) | Minimum 14 days |
| Notice (employer) | Minimum 30 days |
| Extension | Once, same duration |
Notice Period
| Service Duration | Typical Notice |
|---|---|
| Probation | 14-30 days |
| Less than 5 years | 30 days |
| 5+ years | 60-90 days |
Job Title and Duties
| Best Practice | Avoid |
|---|---|
| Clear job title | Vague titles |
| Specific duties | "Any other duties only" |
| Reporting line | No structure |
| Flexibility clause | Too rigid |
Contract Registration
MOHRE Registration (Mainland)
| Step | Details |
|---|---|
| 1 | Prepare contract |
| 2 | Upload to MOHRE portal |
| 3 | Pay fees |
| 4 | Receive approved contract |
| 5 | Employee signs |
Free Zone Registration
| Zone | Process |
|---|---|
| DMCC | Through DMCC portal |
| JAFZA | Through JAFZA portal |
| DIFC | Through DIFC portal |
| Others | Zone-specific portal |
Important: If there's a discrepancy between the contract provided to the employee and the MOHRE-registered version, the MOHRE version prevails.
Contract Modifications
When Amendments Are Needed
| Situation | Process |
|---|---|
| Salary increase | Addendum |
| Role change | Addendum or new contract |
| Location change | Addendum |
| Working hours change | Addendum |
Amendment Process
- Create written addendum referencing original contract
- Specify the clause being amended
- Include effective date
- Both parties must sign
- Register with MOHRE/Free zone if required
Best Practices
- Always use written amendments
- Keep copies of all versions
- Update HR systems
- Inform payroll if salary changes
DIFC Employment Contracts
Key Differences
| Element | DIFC | Mainland |
|---|---|---|
| Contract type | Can be indefinite | Fixed-term only |
| Gratuity | DEWS scheme | Traditional gratuity |
| Working hours | 8 per day | 8 per day |
| Law | DIFC Employment Law | Federal Labor Law |
DEWS Contribution
| Component | Rate |
|---|---|
| Employer contribution | 5.83% of basic salary |
| Employee contribution | Optional |
| Frequency | Monthly |
Dispute Resolution
DIFC disputes are resolved through DIFC Courts or DIFC-LCIA Arbitration Centre, not MOHRE or mainland UAE courts.
Contract Termination
Contract Expiry
| Action | Requirement |
|---|---|
| 30 days before expiry | Discuss renewal |
| If renewing | New contract or extension |
| If not renewing | Final settlement |
Early Termination
| By Whom | Requirements |
|---|---|
| Employer (with notice) | Notice period, settlement |
| Employer (without notice) | Article 44 grounds |
| Employee (with notice) | Notice period |
| Employee (without notice) | Employer breach |
Common Mistakes to Avoid
| Mistake | Consequence |
|---|---|
| Not registering | MOHRE penalties |
| Wrong salary breakdown | Gratuity disputes |
| Missing clauses | Legal exposure |
| Contradicting UAE law | Clause unenforceable |
| Verbal agreements | Not enforceable |
Frequently Asked Questions
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NeuralHR Team
VerifiedUAE HR Compliance Experts
Our team of HR professionals and legal experts specializes in UAE labor law compliance, with extensive experience helping businesses navigate MOHRE regulations, Emiratisation requirements, and workforce management in the UAE and GCC region.
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