Formerly under the United Arab Emirates Labour Law, employees were employed based on an unlimited-term contract. This law was modified to become a limited-term contract in which employers were given a deadline to implement. The former deadline and the new deadline will be reviewed in this post.
The Former Deadline
After the new Labour law was modified, the UAE government mandated all private employers to change employees’ contracts to a limited term by or before February 1, 2023.
The New Deadline
The UAE Ministry of Human Resource and Emiritisation has established that private companies now have ample time to transfer all their employees to the fixed-term contract. The new deadline by the ministry has now been moved to December 31, 2023.
The implication of the new deadline
The implication of the new deadline is that whoever does not comply with the new law as of the new stipulated date will be subject to a penalty and a fine for the contract to be transferred.
If your company is located at the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Free zones then you are exempted.
The UAE government undoubtedly values partnering with the private sector as the private sector increases the value of the State’s GDP and as a result, it is striving to create flexibility for the private sector in the UAE. As a reliable Hr Consultant in Dubai, we implore other Hr consulting firms in the United Arab Emirates to abide strictly and implement the new law for their employees.
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