Drafting an Employment Contract in the UAE Pursuant to Article 1 of the UAE Labour Law, an Employment Contract is defined as an agreement established between the employer and the worker, which clarifies that the worker shall perform work under the supervision and management of the employer in exchange for an agreed-upon wage. This definition clearly demonstrates the importance of drafting an employment contract in the UAE.
If you are seeking a specialized law firm for consultation regarding drafting an employment contract in the UAE, you should contact Samaha Legal Consultants Office.
The Significance of Drafting an Employment Contract in the UAE
The legally sound drafting of an employment contract in the UAE can be considered one of the most essential steps in defining the rights and obligations incumbent upon both parties to the labour relationship. This secures and guarantees the prevention of any legal disputes in the future.
Drafting an employment contract in the UAE requires accurately documenting all the essential required data in the contract, followed by recording any additional or optional terms.
It is crucial to ensure that the worker’s rights in the employment contract are no less than the rights stipulated for them in the UAE Labour Law; this is subsequently documented in the contract.
The worker must utilize the legal expertise of an employment lawyer when drafting an employment contract in the UAE to ensure all their rights are guaranteed under the contract.
Conversely, the employer must also seek consultation from Samaha Office when drafting an employment contract with any worker they intend to employ, in order to pre-empt future labour disputes that may adversely affect the establishment.
Essential Elements Required When Drafting an Employment Contract
The UAE Ministry of Human Resources and Emiratisation (MoHRE) has issued an Advisory Model Employment Contract that contains all the principal data required to be mentioned when drafting an employment contract in the UAE. This contract can effectively serve as a template for any employer who needs to execute a legally compliant employment contract with a worker.
Concurrently, both parties to the employment relationship have the right to include any terms they wish, provided that these terms do not violate the provisions of the UAE Labour Law, its Executive Regulations, or the general public order and morality in the Emirates, through the drafting of the employment contract.
The essential elements that must be present when drafting an employment contract in the UAE are:
- Detailed information of the Employer.
- Detailed information of the Worker.
- The nature of the work to be performed by the worker for the employer.
- The duration of the employment contract (if fixed-term) and the clause for its renewal.
- A statement on the method of contract termination.
- The agreed-upon wage for the worker, along with all allowances and compensation.
- The worker’s rights, consistent with the rights stipulated in the UAE Labour Law, and their obligatory commitments.
- The employer’s rights and obligations.
- The contract’s submission to the Labour Law for matters not explicitly covered by a provision.
- The contract must be drawn up in two original copies, one for each party.
- Signatures of both parties on the contract.
These are the primary data that must be included when drafting an employment contract in the UAE; otherwise, the contract may be deemed void. However, there are some secondary or optional details that can be mutually agreed upon between the worker and the employer, such as placing the worker under probation and the non-compete clause.
Model Draft of an Employment Contract in the UAE
Samaha Office will assist you in providing the best model draft of an employment contract in the UAE as follows:
First Party: The Employer (Details) Second Party: The Worker (Details)
Contract Preamble:
Whereas the First Party is a Limited Liability Company operating in the field of [….] and wishes to employ a worker specialized in [….], and whereas the Second Party possesses the qualifications to fill this position, the will of both parties has converged to agree upon the following points in the drafting of this employment contract in the UAE:
- The Contract Preamble is an integral and indivisible part of the employment contract.
- The Second Party shall work for the First Party in the capacity of [Job Title].
- The term of the contract is one full Gregorian year, commencing on [Date] and ending on [Date], with the possibility of renewal unless one party notifies the other of their desire not to renew at least two months prior to the expiry of the term.
- The Second Party shall be subject to a probationary period of three months, during which either party has the right to terminate the contract without notice or compensation.
- The First Party shall pay the Second Party a monthly wage of [Amount] AED, along with all allowances and compensation stipulated in the internal work regulation.
- The Employer has the right to terminate the employment contract if the worker commits gross violations in accordance with the relevant provisions of the UAE Labour Law.
- The Worker undertakes not to compete with the Employer in the commercial activity practiced by the Employer for a period of two years from the date of the termination of the employment relationship, and this restriction shall apply in the [Specify Area] region.
- Disputes arising between the worker and the employer shall be resolved in accordance with the provisions established by the UAE Labour Law.
- This contract has been executed in two copies, with one copy for each party.
First Party (Employer): [Signature] Second Party (Worker): [Signature]
What Types of Employment Contracts Require Drafting
A variety of contracts require the drafting of an employment contract in the UAE, including:
- Full-Time Contract
- Part-Time Contract
- Temporary Contract
- Flexible Work Contract
- Remote Work Contract
- Job Sharing Contract
- Electronic Employment Contract
Having presented all aspects related to drafting an employment contract in the UAE, ensuring its compliance with the UAE Labour Law and its Executive Regulations, and its adherence to the essential elements of the Advisory Contract issued by the Ministry of Human Resources and Emiratisationز
if you require consultation regarding drafting an employment contract in the UAE, you should contact Samaha Legal Consultants Office. We are your optimal choice for drafting an employment contract in the UAE.