The contracts must be changed to comply with the new regulations by December 31, 2023, according to the Ministry of Human Resources and Emiratization.

Abu Dhabi

According to local media, the United Arab Emirates (UAE) has extended the deadline for amending employment contract conditions to conform to the new regulations.

The contracts must be changed to comply with the new regulations by December 31, 2023, which is the deadline set by the Ministry of Human Resources and Emiratization.

The country's new labour legislation went into effect on February 2, 2022.

The change to the length of employment contracts is the most significant of these. As a result, in accordance with the legislation, employment contracts that are signed for an indeterminate period of time without specifying a specific period must be modified.

As a result, every employment contract needs to have a set duration. The length of the employment agreements may not exceed three years. If both the employer and the employee agree, contracts may be extended or renewed for a comparable or shorter period of time.

According to numerous media sources, the original contract is deemed prolonged with the same conditions included therein if the employer and the employee continue to carry out the terms of the agreement after the end of its initial term without making a specific agreement.

The new period or periods, in the event of a contract extension or renewal, shall be regarded as an extension of the initial period and shall be added to it in determining the employee's continuous time of service.

Within a year of the new labour law's taking effect and in accordance with its requirements, regulations, and procedures, unspecified work contracts will be changed into fixed-term work contracts.

According to the law, this time frame may be extended if it is in the public interest. The revised ruling gives the private sector till the end of 2023 to amend fixed-term employment contracts.

According to the Ministry of Human Resources and Emiratisation, all private sector businesses must comply with the UAE's change to fixed-term employment contracts by the deadline of February 1.

As part of its labour law reforms, the UAE government removed the three-year restriction on the length of fixed-term contracts in the private sector in October of last year.

The second-largest economy in the Arab world, the UAE, has recently enacted a number of economic, legal, and social reforms to improve its business climate and boost foreign direct investment.

Additionally, it seeks to entice qualified employees with new visas and encourage the business establishment or expansion in the UAE.

The coronavirus-caused slowdown in the UAE labour market has been significantly reversed thanks to the government's fiscal and monetary policies.

When the amendment was announced in October of last year, Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said, "The UAE government continues to build regulations and laws that match with what the next 50 years of the UAE's development demand."

"The laws and regulations enhance the stability, resilience, and attractiveness of our business climate."

Here is all the information you require on the modifications to the employment contracts in the UAE's private sector.

What modifications have been made to UAE employment contracts?

The UAE government amended the nation's labour rules by introducing new legislation in February of last year.

The changes would swap out permanent or indefinite contracts for renewable three-year contracts for employees in the private sector.

Federal Decree-Law No. 14 of 2022, which was released by the government in October, did away with the proposed three-year cap on fixed-term employment contracts.

According to the Ministry of Human Resources and Emiratization, private sector businesses must now issue new contracts that include a specified duration of employment and can be renewed "subject to an agreement by both parties to a contractual connection."

The contract's duration will no longer be restricted, it was added.

It also means that the length of the contract must be agreed upon by both the employer and the employee.

"The rules adhere to the UAE's sophisticated developmental model and its guiding ideals, which are founded on fairness, respect for human rights, and keeping on the cutting edge of change. This ensures the UAE's ongoing development, stability, and leadership status", according to Mr. Al Awar at the time.

What is the timeline for completing the new contracts?

By Wednesday, February 1, all employers in the private sector must transition to the new contracts.

Businesses that miss the deadline run the danger of receiving a fine from the Ministry of Human Resources and Emiratization. What the punishment will be is not yet known.

Does everyone employed in the UAE have to sign a new contract?

Yes, signing the new contract is required for workers in the private sector.

Domestic workers and those employed by businesses located in the financial-free zones of Dubai International Financial Centre and Abu Dhabi Global Market are exempt, nevertheless.

Will the new contracts be paid for by the employees?

No, the employer bears the expense of transferring the new employment contracts; employees are not permitted to bear this expense.

How will this influence my career?

No, it won't have an impact on your regular obligations.

The Ministry of Human Resources and Emiratization stated that it will, however, enable private sector employers and workers to reach agreements on activities including job sharing and part-time employment.

The amendment also intends to safeguard both parties equally, foster the expansion and stability of the labour market, and raise the UAE's economic competitiveness, it was stated.

According to Mr. Al Awar, the proposed modifications "establish a sophisticated ecosystem of mechanisms that increase the labour market's efficiency, resilience, and convenience of doing business while enhancing its appeal to business owners and talent."

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