Types of employment contracts in UAE

When you sign an employment contract in the UAE, you earn the right to work legally in this thriving nation. The terms of employment contracts in the UAE are determined by factors such as the company’s type, the nature of the job, and the length of employment. When you begin working in the UAE, it is necessary to have a contract. In this article, let’s learn more about everything you need to know about employment contracts in the UAE.

What are employment contracts in the UAE?

In the UAE, employment contracts are an essential component of the labour market. The document outlines the agreement between the employee and employer regarding the terms and conditions. In the outline, they specify the duration of the job, the salary, and the particular duties that the employee must fulfil. The document confirms both the person’s employment and their eligibility to remain in the region, as well as the employer’s compliance with payment obligations. 

In the United Arab Emirates, working without a contract can have negative effects on both companies and employees. The worker’s immigration status may be revoked. Companies that hire people without contracts face fines and may lose their business licenses.

Types of employment contracts in the UAE

In the UAE, employment contracts fall into two categories: public-sector contracts and private-sector contracts. Depending on whether you work in the private or public sector, the terms and conditions of your employment contract will vary. 

Public Sector Employment Contracts

Public-sector companies offer four different kinds of employment contracts.

Full-Time Contracts: This agreement permits an employee to work in a particular role on a full-time basis, receiving their complete salary and benefits. It is similar to a regular employment contract, requiring the employee to work the specified full working days or hours.

Part-Time Contracts: The employee is expected to work limited hours, and their salary is calculated based on the number of hours worked, benefits, and allowances. The contract can be transferred from part-time to full-time or vice versa upon the employee’s request, provided the same financial allowances are available.

Special Employment Contract: The minister appoints high-level positions within an organization through a special employment contract. An extra two years can be added to the contract, and the ministry, in coordination with the Ministry of Finance, determines the remuneration terms, which are then approved by the Cabinet.

Private Sector Employment Contracts

The UAE Labour Law No. 8 of 1980 establishes three types of private-sector employment contracts.

Limited Contract: A fixed-term contract, also known as a limited contract, is an employment agreement that specifies the start and end dates of the employment period. It is canceled when it expires unless renewed before it. Limited contracts are a popular choice for employees hired for specific projects or durations. According to UAE Labour Law, these contracts must specify the start and end dates, remuneration, benefits, work nature, workplace, and contract duration.

Part-Time Contract: In 2018, a Part-Time Contract was introduced, enabling organizations to employ skilled workers in the UAE or abroad on a part-time basis. Employees on a part-time contract can take on multiple jobs without requiring approval from their primary employer but must obtain a permit from the MoHRE.

Exploring the Role of Manpower Companies in Meeting Contractual Staffing Needs

Manpower supply includes hiring people directly or indirectly and providing them with labour on a contract or permanent basis. Companies have frequent needs for candidates for a range of projects & employment types. Manpower supply companies specialize in resolving legal formalities and labour license issues, ensuring smooth operations. Employment contracts are crucial in the UAE, outlining terms and conditions between employers and employees. 

Manpower suppliers serve as consultants, addressing various issues such as job duration, salary, and duties. Employment contracts help confirm one’s employment status, eligibility to remain in the region, and employer adherence to payment obligations. These suppliers connect companies with skilled workers, handling the hiring process efficiently. Companies benefit from time, cost, and effort savings by outsourcing hiring to manpower agencies. These agencies possess the expertise to identify talented individuals based on organizations' specific criteria and requirements.

It might be difficult to navigate the intricacies of staffing demands in the UAE's evolving employment contract system. However, you can be confident that your staffing needs will be expertly handled when Marmoom is your go-to partner for manpower supply. Our wide experience and dedication to quality enable us to provide manpower supply services that are suitable for a variety of projects and sectors.