UAE: One year deadline for private sector workers to transfer their contracts

The entry into force of the provisions and articles of the two decrees of two federal laws regarding the regulation of labor relations and the unified general rules for work in the country, with the aim of enhancing the efficiency of the labor market, attracting and maintaining the best competencies and future skills from employment, in parallel with providing a stimulating and attractive work environment for employers, and unifying the general rules of work In the country, according to a contractual relationship between the employer and the employee or worker, based on a fixed-term employment contract.

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With the beginning of the implementation of the Federal Decree Law on regulating labor relations, a year period begins (ending on February 2, 2023, with the possibility of extension) to convert “unlimited” work contracts for private sector employees, to “fixed term” contracts, with no more than three years, and by agreement of the two parties, this contract may be extended or renewed for similar or lesser periods once or more.

The ministry clarified that the new law authorized contracting according to four work patterns or any other patterns specified in the human resources laws for workers in the federal government, and the decree by a federal law on the regulation of labor relations, which regulate the cases in which it is permissible to combine more than one type of work with more than one entity. Considering that the multiplicity of work patterns would invest the existing competencies in the country, and bring benefit to federal or private government employers by directing employment operations to meet their needs and ensure business continuity in the required manner, as well as achieving benefit for the employee or worker by allowing him to establish a working relationship that fit his aspirations.

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