Update of New UAE Labor Contracts That Indians Can Benefit From: Explained

UAEs Ministry of Human Resources and Emiratization recently updated its regulation on industrial relations with the aim of providing more flexibility. The UAE has removed limits on the length of employment contracts, making the country a “more balanced environment for both employers and employees,” Khaleej Times reported. Here’s everything you need to know about the new changes and how it will affect your work in the UAE:

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How do fixed-term contracts change?

Due to the new labor law in the UAE, open-ended contracts will be changed to fixed-term contracts. Previously, an employee could be hired with a fixed-term employment contract for a maximum of three years, but this maximum will also be lifted, according to the new rules.

Can companies issue contracts for five or ten years?

The new change says that all employment contracts must be for a fixed term, meaning that there is no limit to the length of the term. The contract can therefore be extended.

How will the change benefit Indians?

Previously, employment contracts were synchronized with an employee’s visa status, limiting contracts to two and three years validity of previous residence visas. But with the new update, the contract could have a much longer duration than the applicant’s visa status.

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Will the change promote flexible work models?

Employees will also be given the option to get flexible, temporary or part-time contracts when applying for jobs and to combine more than one job model.

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