8 Answers About UAE Employment Contract

Once you’re employed in Dubai, you need to be familiarized with your rights and limitations as an employee. The UAE employment contract contains everything that covers your job description, to compensation, and termination of the contract.
Here are some frequently asked questions and answers about the UAE employment contract:

1. Is Labour Contract same as the Contract of Employment?
It means the same if you try to look at the essence. Both of these important documents contain vital information about your employment. But when it comes to employment in Dubai, these two documents are totally different. The official Federal Labour Contract is written in both Arabic and English. As required by law, it contains basic information about your employment. This must be printed in three copies, one should be with the employer and the other with the employee. The electronic copy should be with the Labour Ministry. It has no legal effect unless submitted to the Ministry of Labour.

2. I have signed “Contract of Employment”. Is this the document binding me to an employee-employer relationship?
Check if you’re holding a Dubai employment contract with specific employment conditions with the particular employer, which includes rights and obligations, job description, etc. and is written in English – it is not binding. This document doesn’t have any bearing and may not be used against you

Just remember that for any employment-related document, it is not legally enforceable unless written in Arabic.

3. Why is the UAE Labour Contract required to be written in both English and Arabic?
Arabic is the official and sole language named by the UAE Federal Laws which should be used in every mode of communication between an employer and their employees. Given that Dubai’s workforce is comprised mostly of expats and English is accepted language of business internationally, it is used alongside Arabic. Employees are expected to understand the provisions of the contract before affixing their signatures.

4. What are offer letters? Is it a necessity?
It is a formal offer of employment to a prospective employee. It should contain the necessary details such as job description, compensation, benefits such as salary and allowances, leave, dues, and perks. It is a common practice for an employer to send an offer letter first to the candidate who successfully made it through the hiring process. However, it is not mandatory.

5. What is the difference between limited and unlimited contracts?
There are two types of contracts: Limited or Unlimited. The difference between them is that an unlimited or indefinite contract is a renewable contract. The period of employment is the validity of the residence visa. You can renew this contract upon expiration.

After the probationary period, each party can terminate the contract. The employer needs to give a 30 day notice.

A limited contract on the other hand, only specifies a definite term or period of employment. Renewal of the contract upon expiration is not guaranteed. The employer can terminate the contract but with payment of damages to party who suffers the breach. There’s a maximum penalty set by law, which can amount to 1.5 times of the employee’s monthly wages.

6. What is the probationary period?
Probationary period is the period of time usually maximum of 6 months wherein the employee’s performance is subject to scrutiny. During this time, the employer will assess if the employee is suitable for the job. The employment may be terminated at any time, without further notice or compensation other than wages earned.

7. How long does probationary period last?
It is required by law. Thus, it is mandatory. It should be no less than 3 months.

8. Can my contract be terminated before it expires?
Yes, you can have given you’re under these circumstances:
-You have been assaulted by your employer or their legal representative.
-You don’t receive salary as indicated in the labour contract
You must have a complete understanding of everything that is written on your employment contract before you sign any document and start working.

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