Types of Employment Contracts in Public & Private Companies in the UAE

Pursuing a career in the UAE is a dream for many. This is because the country allows expatriates to earn more than they would in their home country. According to statistics by HSBC, 73% of those currently living in UAE enjoy this benefit along with insurance, annual ticket plane tickets, and healthcare allowance.

As with most countries, the UAE offers has two sectors for work, namely the public and the public sector. The Federal Law No. 8 of 1980, also known as the Labour Law lists all regulations about working in the country. This applies to employees and employers in the country.

Also Read: New Job Categories for Long-term Visa Holders in UAE

What are the Employment Contracts in UAE

A. Jobs in the Public Sector

These are for those who will work in government agencies. The Cabinet Decision No. 13 of 2012 governs these. These contracts are different in terms of length of employment, benefits for the employees, and the requirements for renewal.

1. Full-time Employment Contract: In this contact, the employees attend work in regular full working days and hours. The employee receives all of the benefits, salary, and allowance from the job.

2. Part-Time Employment Contract: Work hours for this contract is limited. The pay the employee will receive depends upon the working days and hours allocated for the work. The employee receives all of the benefits, payroll, and allowance from the job.

3. Temporary Contract: In this contract, the employees attend work in full working days and hours. Its difference from the full-time employment contract lies in the limited working period of three months. It can be extended for similar periods. The employee receives all of the benefits, salary, and allowance from the job.

4. Special Contract: This contract is specifically for those appointed by a minister. The period for employment lasts for two years and can be extended for another two. The employee receives all of the benefits, salary, and allowance from the job. However, it is limited to the first contract made with the Ministry of Finance and as approved by the Cabinet.

B. Jobs in the Private Sector

These are for those who will work in private companies and enterprises Labour Law of 1980 governs these. These contracts differ in length of service and end of service gratuity.

1. Limited Term Contract: These contracts are automatically cancelled at its specified date. The employment period is defined in the contract. These are specifically for employers who will only require the service of employees for a limited time. The maximum term for this contract is two years.

2. Unlimited Term Contract: These contracts do not have a specified date of termination. This means that an employee can extend their service for as long as the employer requires. In the case of a necessary termination, a notice of 1 to 3 months will be given. Mutual consent between the two parties must be secured for this. Legal action may be taken if one of the parties does not honour the grounds for the contract.

3. Part-Time Contract: This contract is the latest to be added. It allows companies to hire workers from inside or outside the contract under part-time work hours. This is limited to holders of degrees and diplomas in technical or scientific fields. They can either be limited or unlimited. What makes them different from the earlier mentioned contracts is the fact that employees can take several part-time jobs without asking for approval from employers. He/she will be required to take a permit from the Ministry of Human Resources and Emiratisation before doing this.

You should know all the types of employment contracts in the UAE before you leave your country & work here. By having an idea of these contracts, finding a job, you’d be more comfortable.

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