Since 2 February 2023, all UAE employment contracts must be limited-term (maximum 3 years, renewable). Unlimited contracts are no longer legally valid. Employment contracts must be in Arabic (or bilingual), registered on the MOHRE portal, and include mandatory clauses on salary, working hours, leave, and notice period.
Limited-term contracts — what changed in 2022/2023
The UAE Labour Law (Federal Decree-Law No. 33 of 2021, effective 2 February 2022) eliminated the unlimited employment contract. From that date, all new employment contracts must be limited-term: a defined start date and end date, with a maximum initial term of 3 years.
Existing unlimited contracts had to be converted to limited-term by 2 February 2023. Any unlimited contract still in force after that date is treated as a limited-term contract automatically — but employers who did not formally convert risk MOHRE penalties and disputes on termination terms.
A limited-term contract is renewable — employees are not dismissed at the end of each 3-year term. The contract can be renewed for another 3 years (or shorter) any number of times. The ‘limited’ refers to having a defined end date in the contract text, not to the total employment relationship.
Mandatory contract clauses under UAE Labour Law
- Basic salary and allowances — listed separately (housing, transport, medical)
- Job title and description
- Working hours — standard is 8 hours/day, 48 hours/week; Ramadan reduced hours apply
- Annual leave — 30 calendar days per year (2 days/month in first year)
- Notice period — minimum 30 days, maximum 90 days
- Probation period — maximum 6 months; cannot be extended
- Termination grounds
- Governing law — UAE Federal Labour Law (unless DIFC or ADGM entity)
The employment contract must be in Arabic (or bilingual Arabic/English). For MOHRE portal submission, the Arabic version governs any dispute. A contract in English only may be unenforceable before the Labour Court if the employee challenges it.
Probation period — 6-month maximum, termination rules
The probation period under UAE Labour Law is a maximum of 6 months. It cannot be extended or renewed. During probation:
- Employer termination: 14 days’ written notice required (not the standard 30–90 days). No gratuity owed for service during probation only.
- Employee resignation to join another UAE employer: 1 month’s notice required. The new employer must compensate the old employer for recruitment costs if hiring within 3 months of resignation from probation.
- Employee resignation to leave UAE: 14 days’ notice. No compensation obligation on the new employer.
Non-compete clauses — enforceability
Non-compete clauses are allowed under UAE Labour Law but must meet three conditions to be enforceable: (1) the employee must be in a role where they have access to business secrets or confidential clients; (2) the clause must be limited in time (maximum 2 years post-employment); and (3) limited in geographic scope (not excessively wide — UAE-specific is generally acceptable, global is usually unenforceable).
A non-compete clause that covers all industries, global geography, and unlimited duration is void. Courts routinely nullify overreaching clauses and award damages to employees unlawfully prevented from working.
Need MOHRE-compliant employment contracts drafted?
We draft bilingual limited-term contracts, register them on the MOHRE portal, and advise on probation, termination, and non-compete provisions. Fixed fee.
Frequently asked questions
Are there unlimited contracts in UAE anymore?+
No. Since 2 February 2023, all UAE employment contracts must be limited-term (maximum 3 years, renewable). Unlimited contracts are no longer legally valid. Employers who did not convert existing unlimited contracts by that deadline face compliance risk.
What is the maximum term for a UAE employment contract?+
3 years. After 3 years, the contract can be renewed for another term (up to 3 years) any number of times. Each renewal must be documented in writing and ideally reregistered on the MOHRE portal.
What is the probation period under UAE Labour Law?+
Maximum 6 months. Cannot be extended. During probation, employers can terminate with 14 days’ notice. Employees resigning to join another UAE employer must give 1 month’s notice; the new employer may owe the old employer recruitment cost compensation.
What notice period is required for UAE employment termination?+
Minimum 30 days, maximum 90 days — as specified in the employment contract. Notice must be given in writing. The employer can pay salary in lieu of notice instead of requiring the employee to work the notice period.
Are non-compete clauses enforceable in UAE?+
Yes, if limited to 2 years post-employment, reasonable geographic scope, and applies to employees with access to confidential information. Overly broad clauses (global geography, all industries, unlimited time) are typically voided by UAE courts.
Must UAE employment contracts be in Arabic?+
For MOHRE registration and labour court purposes, Arabic is the governing language. Bilingual (Arabic/English) contracts are best practice. An English-only contract may be unenforceable in UAE Labour Court proceedings.