MoHRE Labor Contract Agreements in UAE : 2023 Guide to Employment Terms

MoHRE Labor Contract Agreements in UAE : 2023 Guide to Employment Terms

In the United Arab Emirates (UAE), the employment landscape is dynamic and diverse, attracting professionals from around the world. Whether you're a foreign expatriate or a UAE national, one common thread binds all employees: the UAE Labor Contract Agreement. This vital document serves as the foundation of your employment relationship and outlines the terms and conditions that govern your work.

What is MoHRE in UAE?

MoHRE stands for the Ministry of Human Resources and Emiratisation in the United Arab Emirates. It is the government ministry responsible for overseeing labor-related matters, workforce issues, and the employment landscape in the UAE. The ministry plays a vital role in regulating labor relations, ensuring workers' rights, and maintaining the country's labor market in compliance with national laws and international standards.

What Is a UAE’s MoHRE Labor Contract Agreement?

A UAE Labor Contract Agreement, often simply referred to as an employment contract, is a legally binding document that formalizes the relationship between an employer and an employee. This agreement is a fundamental element of the UAE's labor laws, ensuring transparency and fairness in the employment process. It is designed to protect the rights and interests of both parties.

Why Is the UAE Labor Contract Agreement Important?

The UAE Labor Contract Agreement is a cornerstone of your employment in the country for several reasons:

• Legal Protection: It provides legal protection for both employers and employees, ensuring that both parties fulfill their obligations and respect each other's rights.

• Transparency: The contract creates a transparent framework, outlining the terms of employment so that there are no ambiguities or misunderstandings.

• Work Rights: The agreement safeguards your rights as an employee, including fair compensation, leave entitlements, and job security.

• Legal Reference: In case of any employment disputes, the contract serves as a legal reference point to resolve conflicts.

Types of Employment Contracts in UAE 

In the United Arab Emirates (UAE), the labor market offers various types of employment contracts to accommodate different work arrangements and employee needs. These contracts are designed to provide flexibility and ensure the protection of both employees and employers. Here are some of the different types of labor contracts in the UAE:

• Limited Term Contract (Fixed-Term Contract):

  • Duration: A limited term contract specifies a fixed duration for employment, often ranging from several months to a few years. It is commonly used for project-based work or when an employer needs an employee for a specific period.

  • Renewal: Upon contract expiry, both parties can choose to renew it for a similar or shorter duration.

• Unlimited Term Contract:

  • Duration: An unlimited term contract doesn't specify an end date and is typically open-ended.

  • Termination: It can be terminated by either party with a notice period as per the labor law.

  • Rights: Employees under unlimited term contracts generally enjoy more job security and entitlements like end-of-service benefits.

• Part-Time Contract:

  • Duration: This contract is used when an employee works fewer hours than the standard full-time workweek, often on a specified schedule.

  • Rights: Part-time employees are entitled to pro-rata benefits based on their work hours.

• Temporary Work Contract:

  • Duration: Temporary contracts are suitable for short-term assignments or seasonal work.

  • Termination: The contract automatically ends upon project completion or by agreement.

  • Rights: Employees under temporary contracts have rights similar to other contract types during their employment period.

• Freelance or Self-Employment Contract:

  • Duration: Freelancers and self-employed individuals often work on project-specific contracts.

  • Termination: These contracts end upon project completion or as per the agreed terms.

  • Rights: Freelancers are responsible for their own social security and benefits.

• Secondment Contract:

  • Duration: Secondment contracts are used when an employee is temporarily assigned to another organization.

  • Termination: The secondment ends upon the agreed completion date.

  • Rights: Seconded employees typically remain employed by their original company and maintain their rights and benefits.

• Remote Work Contract:

  • Duration: With the rise of remote work, some contracts specify that employees can work from a location outside the company's physical office.

  • Termination: Remote work contracts can be terminated under the same rules as other contract types.

  • Rights: Employees retain their rights and benefits, but some may be subject to taxation laws in their remote work location.

• Job Sharing Contract:

  • Duration: Job sharing allows two or more employees to share one full-time position.

  • Termination: Each individual's job sharing contract remains valid until terminated according to labor laws.

  • Rights: Employees enjoy rights and benefits on a pro-rata basis.

It's essential for both employees and employers to understand the specifics of the labor contract they enter into. Labor contracts in the UAE are designed to ensure fair and transparent employment relationships, offering various options to meet the diverse needs of the labor force. Always consult with legal professionals or the UAE Ministry of Human Resources and Emiratisation (MOHRE) if you have questions about your labor contract or labor rights in the UAE.

How Can You Get MoHRE Labour Contract?

To obtain a Ministry of Human Resources and Emiratisation (MoHRE) labor contract in the United Arab Emirates, you typically need to follow these steps:

• Employment Offer: First, you need to receive a formal job offer from an employer in the UAE. This offer should outline the terms and conditions of your employment, including your salary, benefits, job role, and other relevant details.

• Accept the Offer: Once you've received and reviewed the job offer, you'll need to formally accept it. This is typically done by signing an acceptance letter or employment agreement provided by the employer.

• Labor Approval: Your prospective employer should then apply for the required labor approval from the MoHRE. This approval ensures that the employment offer complies with UAE labor laws. The approval process may involve submitting the necessary documents and information about the job, the employer, and the employee to the ministry.

• Labor Contract Issuance: After receiving the labor approval, the MoHRE will issue an employment contract. This contract details the terms of your employment, including your job role, salary, working hours, probation period (if any), and other relevant conditions. The contract may be issued electronically or in hard copy.

• Review the Contract: Once you receive the labor contract, it's crucial to review it thoroughly. Ensure that all the terms and conditions align with the job offer you initially accepted. If you have any questions or concerns about the contract, you can discuss them with your employer.

• Signing the Contract: If you are satisfied with the contract's terms, you and your employer should sign the contract. Both parties should keep a copy of the signed contract for their records.

• Work Visa Application: Your employer will apply for a work visa (residence permit) on your behalf based on the signed labor contract. This involves additional documentation, such as a medical examination and security clearance, depending on the specific requirements.

• Residence Permit Issuance: Once the work visa application is approved, you will be issued a residence permit, which allows you to live and work in the UAE. This permit is typically stamped in your passport.

• Orientation and Reporting: Upon arrival in the UAE, you may undergo an orientation and onboarding process by your employer. Additionally, you might need to report to the MoHRE or relevant authorities to complete the necessary paperwork and formalities.

Please note that the exact procedures and requirements for obtaining a MoHRE labor contract may vary based on your specific circumstances, your job role, and the Emirate in which you will be working. It's essential to work closely with your employer and adhere to the UAE's labor laws and regulations throughout the process. Additionally, labor contracts are subject to the latest labor regulations, so it's important to stay informed about any updates or changes that may affect your employment contract.

Key provisions and requirements that a labor contract in the UAE needs

Under Federal Decree-Law No. 33 of 2021 on the Regulation of Labor Relations in the Private Sector in the UAE, a labor contract is a legal requirement for hiring employees. The law specifies several key provisions and requirements that a labor contract in the UAE needs to meet:

• Contract in Writing: The labor contract must be in writing, and a copy must be provided to the employee. This ensures clarity and transparency in the employment relationship.

• Identification of Parties: The contract should clearly identify the employer and the employee, including their names, nationalities, and contact details.

• Nature of Work: The contract must outline the nature of the work and job description, specifying the role and responsibilities of the employee.

• Date of Contract: The contract should include the date when it is being signed by both parties, and the date when the employment is expected to commence.

• Duration: The contract should state whether it is a limited-term or unlimited-term contract. Limited-term contracts are used for specific durations or projects, while unlimited-term contracts have no fixed end date.

• Probation Period: If a probation period is agreed upon, it must be stated in the contract. The probation period should not exceed six months.

• Wage and Benefits: The contract should outline the salary, allowances, and any other benefits provided to the employee. It should also specify the frequency and method of payment.

• Working Hours: The normal working hours, rest days, and weekly off should be clearly defined in the contract.

• Notice Period: The contract should specify the notice period required for either party to terminate the employment relationship.

• End-of-Service Benefits: The contract must include details on the calculation and payment of end-of-service benefits (gratuity) in case of contract termination.

• Non-compete Clause: If the contract includes a non-compete clause, it should define the scope, duration, and geographic area of the restriction.

• Termination Procedures: The procedures for terminating the contract, including the reasons for termination and the required notice period, should be detailed in the contract.

• Work Location: The workplace or location where the employee is expected to perform their duties should be specified.

• Health and Safety: The contract should include provisions related to the safety and health conditions at the workplace, ensuring compliance with labor regulations.

• Other Legal Obligations: The contract should adhere to all other legal obligations and requirements as specified by UAE labor laws.

• Additional Clauses: Employers may include additional clauses that comply with labor laws and regulations or address specific terms and conditions unique to the employment relationship.

Employees and employers in the UAE often have various questions and concerns related to labor contracts. Here are some common questions asked by both parties:

Questions Frequently Asked by Employees:

• What type of employment contract am I being offered?

  • Employees want to understand the terms, duration, and rights associated with their employment contract.

• What is the notice period for termination?

  • Knowing the notice period helps employees plan for job changes or resignations.

• What are my working hours and days off?

  • Clarity on working hours and days off is crucial for work-life balance.

• How are end-of-service benefits calculated?

  • Employees inquire about their entitlements upon contract termination.

• What are the probation period terms?

  • Understanding the probation period and related rules is vital for new employees.

• How can I request contract renewal or changes?

  • Employees may want to extend or modify the terms of their contracts.

• What are my rights and benefits, including leave and holidays?

  • Employees seek information on their rights and entitlements.

• Can I take on part-time work in addition to my current job?

  • Clarifying part-time work rules is essential for those considering multiple jobs.

• How do I request a secondment or transfer to another company?

  • Employees may want to explore opportunities for career advancement or different work experiences.

• What are the rules for remote work, if applicable?

  • Understanding remote work arrangements and expectations is important in the modern work environment.

  Questions Frequently Asked by Employers:

• What type of labor contract is most suitable for our hiring needs?

  • Employers need to determine the appropriate contract type based on their staffing requirements.

• How can we terminate an employee's contract legally?

  • Employers seek guidance on the correct procedures for contract termination.

• What benefits and allowances are we required to provide to our employees?

  • Employers want to ensure they comply with labor laws regarding employee rights and benefits.

• Can we offer employees fixed-term contracts for project-based work?

  • Employers explore options for hiring temporary or project-specific workers.

• What are the rules and requirements for employing part-time or remote workers?

  • Employers need to understand and adhere to labor laws regarding part-time or remote work.

• How can we enforce non-compete agreements to protect our business interests?

  • Employers may want to include non-compete clauses in contracts and need guidance on the legality and terms.

• What steps can we take to facilitate the secondment of employees to other organizations?

  • Employers inquire about the procedures for secondment or employee transfer.

• How should we address contract renewals, extensions, or amendments?

  • Employers may need to modify or renew contracts and want to ensure compliance with the law.

• What are our obligations when an employee resigns during the probation period?

  • Employers seek clarity on their rights and responsibilities when a new hire resigns during the probation period.

• How can we accommodate job-sharing arrangements, if requested by employees?

  • Employers may need to manage job-sharing arrangements and are looking for guidance on this unique work structure.

These are just a few examples of the questions that employees and employers may have regarding labor contracts in the UAE. It's important for both parties to be well-informed about their rights and obligations to ensure a fair and legally compliant employment relationship. When in doubt, consulting with legal experts or the UAE Ministry of Human Resources and Emiratisation (MOHRE) can provide clarity on labor contract-related matters.