Extension of Deadline for Companies by MOHRE

The Ministry of Human Resources and Emiratisation (MOHRE) has extended the deadline for private sector companies to convert the unlimited term employment contracts of their employees into fixed term ones, to December 31, 2023 instead of February 2, 2023.

Federal Decree Law No. 33 of 2021 on the Regulation of Labor Relations in the Private Sector, (“new UAE Labor Law” which went into effect on February 2, 2022) has initially required employers in the UAE to convert all unlimited term employment contracts of their employees to fixed-term ones during a grace period that ends on February 2, 2022.

However, the Ministry of Human Resources and Emiratisation (“MOHRE”) has extended the deadline for private sector companies to execute the transition of employment contracts to December 31, 2023, instead of February 2, 2023.

Such move will provide enough time for private companies to change the employment contracts, in addition to enhancing flexibility, competitiveness and ease of business for private sector and safeguarding all parties’ rights as per MOHRE.

As a result, the aforementioned changes, require employers operating in the UAE to take the necessary steps to ensure compliance with the additional or amended provisions to avoid any penalties stated in the UAE Labor Law.

Additionally, we note that the new UAE Labor Law initially required employers to offer fixed-term contracts to workers, whereby a three-year cap was specified. However in October, MOHRE removed the cap, stating that the employment contracts must cover a defined term without specifying a limit. The employment contract will remain valid as long as both the employer and the employee agree.

MIS Consultants may assist you with revising and amending your employment contracts to comply with the new UAE Labor Law and applicable resolutions and regulations (i) and; revising and drafting Employee Handbook, company policies’(ii) and; any other related compliance requirement(s) (iii).

Senior Associate
Mouannes International Services
Email: nadine@misconsultants.ae