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UAE Employment Contracts — Fixed Term vs Unlimited Term Guide 2026
UAE employment law changed significantly in 2022 with Federal Decree-Law No. 33 of 2021 (effective February 2022). The new law standardised employment contracts to fixed-term only. This guide covers UAE employment contract requirements for 2026.
In this guide:
UAE Employment Contract Change (2022)
- Pre-2022: UAE had two contract types: unlimited term (open-ended) and fixed term; unlimited term was very common for most employees
- Post-February 2022 (current law): ALL new UAE employment contracts must be fixed-term; unlimited term contracts are no longer issued
- Existing unlimited contracts: had 1 year to convert to fixed-term (deadline February 2023); should now all be fixed-term
Fixed-Term UAE Employment Contract Requirements
- Maximum duration: 3 years per contract (renewable)
- Automatic renewal: if employee continues working beyond contract end without new agreement, contract is deemed renewed for same period (or 1 year, whichever less)
- Mandatory contents: start date; position; salary (basic + allowances); working hours; annual leave; probation period; notice period; gratuity entitlement
- Language: Arabic is the legally binding version in UAE mainland; bilingual contracts recommended (Arabic + English)
- Electronic contracts: UAE accepts digital employment contracts (Tasheel system)
UAE Probation Period
- Maximum probation: 6 months from start of employment
- During probation: employer can terminate with 14 days notice; employee can terminate with 1 month notice (30 days) if taking another UAE job; 14 days notice if leaving UAE entirely
- Gratuity during probation: if terminated during probation, NO gratuity (less than 1 year service)
UAE Notice Period Requirements
- Standard: 30 days notice from either party (employer or employee)
- Contract may specify: up to 90 days notice (longer notice periods must be agreed in contract and applied equally to both employer and employee)
- Garden leave: UAE allows employer to place employee on garden leave during notice period (paid but not required to attend work)
Termination Without Notice (Summary Dismissal)
- UAE law allows immediate termination (no notice, no gratuity) for specific employee misconduct: impersonation; physical assault of employer or colleagues; revealing company secrets; drunkeness at work; court sentencing for criminal offence
- Employer must document the reason; follow due process; formal warning system typically required before termination for most disciplinary issues
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