Draft Employment Contract in the UAE

An employment contract establishes the legal relationship between an employer and an employee. It identifies the work to be performed, the remuneration payable, and the conditions governing employment.

For UAE businesses, drafting an employment contract requires compliance with the applicable labour legislation and consideration of the employee’s actual role, working arrangements, and agreed benefits.

A poorly prepared contract may create disagreements over salary entitlements, probation, job responsibilities, or termination. It may also contain provisions that conflict with mandatory employment protections.

Abdulrahman Alshaali Advocates & Legal Consultants assists employers and employees with preparing and reviewing employment contracts under UAE law, with attention to statutory requirements and the practical needs of the employment relationship.

UAE Legal Requirements for Employment Contracts

Federal Decree-Law No. 33 of 2021 Concerning Regulating Labour Relations, as amended, provides the principal legal framework governing employment relationships in the UAE private sector.

The law regulates employment contracts, working arrangements, wages, probation, leave entitlements, termination, and other employment rights.

Cabinet Resolution No. 1 of 2022, which establishes the Executive Regulations of the Labour Law, provides additional requirements concerning employment contracts and their prescribed information.

Article 8 of the Labour Law requires employers to conclude employment contracts according to the agreed work pattern and the applicable approved forms. The employer must retain a copy and provide another to the worker.

These requirements apply within the scope of the federal private-sector labour framework. Employment relationships governed by separate legislation, including certain government, domestic worker, and financial free-zone arrangements, require consideration of their own applicable rules.

Before preparing an employment contract, the employer should identify the legal framework governing the particular employment relationship.

Information That Must Be Included in an Employment Contract

Article 10 of Cabinet Resolution No. 1 of 2022 specifies the principal information that employment contracts must contain.

The required details include:

• The employer’s name and address.
• The employee’s name, nationality, date of birth, and identity information.
• The employee’s qualifications and occupation or profession.
• The date of joining and place of work.
• Working hours and rest days.
• The probation period, where applicable.
• The duration of the employment contract.
• The agreed wage, including benefits and allowances.
• Annual leave entitlement.
• The notice period and procedures for terminating employment.

The contract must also include any additional information required by the Ministry of Human Resources and Emiratisation.

Employers should ensure that the information entered into the official contract accurately reflects the agreed employment conditions.

Inaccurate salary information, incorrect job descriptions, or missing employment details can create administrative difficulties and disagreements over contractual rights.

Matching the Employment Contract with the Job Offer

A signed job offer is an important part of the recruitment process for employees covered by the Ministry of Human Resources and Emiratisation framework.

The employment contract should correspond to the offer accepted by the employee.

Employers may provide additional benefits, but changes should not undermine the employee’s agreed rights or conflict with the applicable legal requirements.

For example, if an employee accepts an offer specifying a particular basic salary and housing allowance, the employment contract should not introduce less favourable terms without complying with the applicable rules.

Before submitting the contract, employers should compare the final document against the accepted offer.

Any proposed amendment should be clearly communicated, properly agreed, and processed through the relevant authority where approval is required.

This helps establish consistency between the recruitment arrangements and the employment relationship that follows.

Determining the Employment Contract Duration

Article 8 of the UAE Labour Law requires employment contracts to be concluded for a specified period, subject to renewal according to the parties’ agreement.

Federal Decree-Law No. 14 of 2022 amended the original provisions concerning contract duration, removing the previous maximum three-year limit.

Employers and employees may therefore agree on an appropriate fixed term without assuming that every employment contract must be limited to three years.

The contract should identify its commencement date, duration, and any agreed renewal arrangements.

Where a contract is extended or renewed, the additional period is included in calculating the employee’s continuous service.

The law also addresses situations in which both parties continue implementing the contract after its expiry without expressly agreeing to an extension.

Accordingly, the drafting should distinguish the agreed contractual duration from the administrative validity of the employee’s work permit.

Drafting Probation Clauses in Employment Contracts

A probation clause allows the employer to evaluate an employee’s suitability for the position while giving the employee an opportunity to assess the working environment.

Article 9 of the UAE Labour Law regulates probation periods.

An employer may place an employee on probation for a period not exceeding six months from the commencement of employment. The employee cannot be placed on probation more than once by the same employer.

Where the employer wishes to terminate employment during probation, the employee must receive at least 14 days’ written notice.

Different notice requirements apply where an employee wishes to leave the UAE or move to another employer during probation.

The contract should identify the probation period and avoid provisions that attempt to remove statutory rights or impose requirements inconsistent with the law.

Employers should also consider the legal consequences of termination during probation rather than assuming that probation permits unrestricted termination.

Salary, Allowances, and Payment Terms

Employment contracts should distinguish between the employee’s basic wage and other agreed remuneration.

The UAE Labour Law defines basic wage separately from the broader concept of wage, which may include allowances and benefits.

This distinction matters because certain statutory employment entitlements are calculated by reference to the basic wage.

For example, the calculation of the conventional end-of-service gratuity under Article 51 is linked to the employee’s basic wage, subject to the applicable conditions and any relevant alternative scheme.

An employment contract should therefore clearly identify:

• Basic salary.
• Housing and transportation allowances, where applicable.
• Other agreed financial or non-financial benefits.
• Payment frequency and applicable payment arrangements.
• Conditions governing any variable remuneration.

Where commissions or performance-related payments form part of the arrangement, the contract or an appropriate supporting document should establish how entitlement is determined.

Employers must also comply with applicable wage-payment requirements, including the Wage Protection System where it applies.

The agreed remuneration structure should be consistent with the official employment contract and relevant payroll records.

Working Hours, Rest Days, and Leave Entitlements

Working arrangements should reflect the employee’s actual position and comply with the statutory requirements applicable to the employment relationship.

The UAE Labour Law regulates normal working hours, overtime, weekly rest, and different categories of leave.

The contract should identify the employee’s working pattern and relevant working hours without attempting to exclude mandatory entitlements.

Where the employee is engaged under a flexible, part-time, or remote working arrangement, the agreed working pattern should be correctly documented.

The annual leave provision must also comply with statutory requirements.

Under Article 29, eligible employees generally accrue annual leave according to their period of service, including 30 days for each year of service after completing one year.

Other statutory leave entitlements may apply according to the employee’s circumstances.

Rather than reproducing every leave provision in the contract, employers may refer to applicable law and relevant workplace policies, provided the contractual arrangements do not reduce mandatory rights.

Employment Duties and Workplace Responsibilities

A contract should identify the employee’s position and establish a reasonable description of the work expected.

This is particularly important where an employee performs a specialised professional or technical role.

The employer should consider whether the duties described in the contract correspond to the position offered and the work permit issued.

A broad provision allowing an employer to assign any duties whatsoever may create difficulties if it is inconsistent with the applicable labour framework.

Article 12 of the Labour Law regulates assigning an employee work that differs fundamentally from the agreed work, subject to specified exceptions and conditions.

The job description should therefore provide sufficient clarity while allowing appropriate operational flexibility within legal limits.

Where the position involves performance targets, reporting responsibilities, or management authority, these matters may be addressed through supplementary documentation where appropriate.

Notice Periods and Termination Provisions

The UAE Labour Law establishes rules governing the termination of employment relationships.

Article 43 permits termination for a legitimate reason through written notice, subject to a contractual notice period of at least 30 days and no more than 90 days.

The notice period must be consistent with the statutory requirements, including the rules concerning the rights of both parties.

The contract should identify the agreed notice period and avoid wording that creates inconsistent obligations.

Termination during probation, termination without notice in legally specified circumstances, and expiry of a fixed-term contract are governed by distinct provisions.

It is therefore important not to treat every termination scenario as interchangeable.

An employment contract should also avoid provisions purporting to eliminate statutory entitlements simply because employment has ended.

The employee’s final rights and obligations must be determined under the applicable law and the circumstances of termination.

Can Employers Add Special Conditions to an Employment Contract?

Employers may need additional provisions to address the particular responsibilities of an employee.

These can include confidentiality obligations, professional conduct requirements, intellectual property arrangements, or other employment-related conditions.

Article 10 of the Executive Regulations permits additional contractual terms, provided they are consistent with the Labour Law, its regulations, and other applicable legislation.

A company employing an engineer with access to sensitive technical information, for example, may require appropriate confidentiality provisions.

However, an additional contractual condition cannot simply override mandatory employment protections.

Where a company wishes to protect legitimate business interests after employment ends, a Non-Compete Agreement Draft may require separate consideration of the statutory requirements and limitations governing non-competition restrictions.

Additional terms should be tailored to the employee’s responsibilities rather than inserted automatically into every employment contract.

A Practical Example: Drafting a Contract for a Sales Manager

Consider a UAE company recruiting a sales manager under an arrangement involving a fixed monthly salary and performance-based commission.

The parties agree on the salary and general job responsibilities but do not establish how commission will be calculated.

Several questions arise.

Will commission be based on signed customer contracts, issued invoices, or payments actually received?

What happens when a customer cancels an order?

Will commission remain payable on qualifying transactions completed before the employment relationship ends?

These matters may have significant financial implications.

The employer should establish the agreed commission structure and document the relevant conditions in the employment contract or an appropriately incorporated commission policy.

Any arrangement must remain consistent with the employee’s statutory rights and applicable wage requirements.

This example demonstrates how employment contracts can address role-specific remuneration without relying on vague promises that may later become disputed.

Employment Contract Language and Official Requirements

Article 66 of the UAE Labour Law establishes Arabic as the adopted language for employment documentation and requires employers to use Arabic when concluding contracts with workers.

Where a worker does not speak Arabic, another language understood by the worker must also be used, with the translated text corresponding to the Arabic version.

In the event of a dispute, the Arabic text prevails under the statutory provision.

Employers should therefore ensure that the employee receives contractual information in the required language and understands the terms before signing.

Where an additional language version is used, discrepancies involving salary, job duties, or termination provisions should be resolved before execution.

How Abdulrahman Alshaali Advocates & Legal Consultants Can Assist

Drafting an employment contract requires an understanding of the applicable employment framework and the particular working arrangement.

Abdulrahman Alshaali Advocates & Legal Consultants assists employers and employees with preparing and reviewing employment documentation.

Our services may include assessing proposed employment terms, reviewing remuneration arrangements, examining additional contractual conditions, and identifying provisions requiring amendment.

Where a business needs wider assistance with commercial and contractual documentation, our contract drafting services address the preparation and review of agreements under UAE law.

We assist clients in developing employment documentation that reflects the agreed relationship while taking account of statutory requirements.

Explore Our Contract Drafting Services

Our contract drafting services cover employment, commercial, corporate, property, and personal agreements.

General Contract Preparation

contract drafting: Explore the preparation, review, and negotiation of agreements under UAE law.

contract writing: Develop accurate contractual wording that clearly expresses agreed rights and obligations.

draft contract: Prepare an agreement from initial instructions through to the final contractual document.

contract drafting lawyer: Obtain legal assistance with drafting, reviewing, and negotiating contractual terms.

draft contract between two parties: Establish the respective rights and responsibilities of two contracting parties.

Employment and Workplace Agreements

Draft Employment Agreement: Prepare supplementary employment arrangements and clarify their relationship with the official employment contract.

Non-Compete Agreement Draft: Address post-employment competition restrictions within the applicable legal limits.

Property and Rental Agreements

draft tenancy agreement: Prepare contractual provisions addressing landlord and tenant responsibilities.

draft lease agreement: Establish property use, lease duration, payment obligations, and relevant contractual conditions.

draft rental agreement: Document rental terms, security deposits, maintenance obligations, and payment arrangements.

Corporate and Investment Agreements

draft partnership agreement: Define partners’ contributions, management responsibilities, and financial arrangements.

draft operating agreement: Establish internal management provisions appropriate to the legal structure of a business.

Draft Shareholders Agreement: Address shareholder rights, governance, transfers, and exit arrangements.

Draft Investment Agreement: Record investment commitments, funding conditions, and investor rights.

Draft Joint Venture Agreement: Establish the contributions and responsibilities of parties participating in a collaborative project.

Commercial and Financial Agreements

draft business contract: Prepare agreements governing business transactions and commercial relationships.

Draft Sales Agreement: Define the subject of a sale, payment terms, delivery, and contractual obligations.

Draft Supply Agreement: Establish specifications, quantities, delivery arrangements, and payment requirements.

draft loan agreement: Document lending arrangements, repayment obligations, and applicable security provisions.

Franchise Agreement Draft: Establish contractual terms governing franchise operations, fees, and intellectual property use.

Draft Agreement Between Two Companies: Document the commercial obligations of separate corporate entities.

Services and Confidentiality Agreements

draft consulting services agreement: Define consultancy deliverables, professional responsibilities, and fees.

Draft Service Agreement: Establish service requirements, performance standards, and payment obligations.

draft nda agreement: Identify confidential information and establish restrictions on its unauthorised disclosure.

Draft Confidentiality Agreement: Prepare confidentiality obligations appropriate to commercial and employment-related arrangements.

Personal and Dispute-Related Agreements

Prenuptial Agreement Draft: Examine legally available arrangements for documenting financial understandings before marriage under the applicable personal status framework.

Draft Settlement Agreement: Document negotiated resolutions, agreed obligations, and settlement conditions.

Each agreement requires consideration of the legislation applicable to its subject matter and the circumstances of the contracting parties.

Request Employment Contract Drafting Assistance

Whether your business is hiring its first employee, preparing contracts for a growing workforce, or reviewing a proposed employment agreement, the contract should reflect the actual working relationship and applicable UAE employment requirements.

Abdulrahman Alshaali Advocates & Legal Consultants assists clients with preparing and reviewing employment contracts and related contractual conditions.

Contact our team to discuss your employment documentation requirements.

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Frequently Asked Questions

1. Can an Employee Request a Copy of Their Employment Contract?

Yes. Article 8 of the UAE Labour Law requires the employment contract to be prepared in two copies, with one retained by the employer and the other provided to the employee.

Employees covered by the Ministry of Human Resources and Emiratisation framework may also be able to access their registered employment contract through the Ministry’s official services.

2. Can an Employer Charge an Employee for Preparing Their Employment Contract?

Article 6 of the UAE Labour Law prohibits employers from charging workers recruitment and employment costs, directly or indirectly.

An employer should therefore not transfer its employment-related recruitment costs to the employee by labelling them contract preparation or administrative fees.

The allocation of costs must comply with the applicable statutory requirements.

3. What Happens If an Employee Starts Working Without a Proper Employment Contract?

Starting work without completing the required employment documentation can create regulatory and legal difficulties.

The employer must comply with applicable work permit and employment contract requirements.

The absence of a properly documented contract does not automatically deprive a worker of statutory rights. Article 8 allows a worker or their representative to prove the employment relationship, wage, and relevant entitlements through available means of proof.

The appropriate steps depend on the employee’s status and the applicable regulatory framework.

4. Can an Employee Work for Another Employer While Their Employment Contract Is Still Active?

Working for another employer may be possible where the employee obtains the appropriate work permit and complies with the applicable employment requirements.

The relevant arrangements depend on the type of work, the employee’s circumstances, and any lawful contractual restrictions.

Employees should confirm the required authorisation before commencing additional employment rather than assuming that permission from their primary employer alone is sufficient.

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Sources

1. Federal Decree-Law No. 33 of 2021 Concerning Regulating Labour Relations, as amended.UAE Legislation Platform – Official Legislation
2. Federal Decree-Law No. 14 of 2022 Amending Certain Provisions of Federal Decree-Law No. 33 of 2021 Concerning Regulating Labour Relations.UAE Legislation Platform – Amendment
3. Cabinet Resolution No. 1 of 2022 Concerning the Executive Regulations of Federal Decree-Law No. 33 of 2021 Regulating Labour Relations.UAE Legislation Platform – Official Executive Regulations