The Basic Employment Contract serves as a fundamental legal document establishing the employment relationship between employers and employees in the United Arab Emirates. This document is mandatory under UAE Federal Decree-Law No. 33 of 2021 and must be used for all employment relationships in the UAE, whether for limited or unlimited term contracts. The contract template ensures compliance with local labor laws while protecting both employer and employee interests by clearly defining employment terms, conditions, rights, and obligations. It is particularly important as it forms the basis for work permit applications and must be registered with the Ministry of Human Resources & Emiratisation (MOHRE) or relevant free zone authority. The Basic Employment Contract should be used at the commencement of any new employment relationship or when converting existing contracts to comply with current UAE labor law requirements.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Job title, role description, reporting lines, and key responsibilities
5. Term of Employment: Duration of employment (limited or unlimited term) and probation period details
6. Work Location and Hours: Primary workplace location and standard working hours as per UAE labor law
7. Remuneration and Benefits: Basic salary, allowances, bonus arrangements, and statutory benefits
8. Annual Leave and Public Holidays: Leave entitlements, including annual leave calculation and public holiday provisions
9. Sick Leave: Sick leave entitlements and notification procedures
10. Confidentiality: Protection of employer's confidential information and trade secrets
11. Termination: Grounds for termination, notice periods, and end of service calculations
12. Governing Law: Confirmation of UAE law application and jurisdiction
13. Language: Specification of contract language and prevailing version
1. Non-Competition: Restrictions on post-employment activities, used for senior positions or roles with access to sensitive information
2. Intellectual Property: IP rights and ownership provisions, essential for creative or technical roles
3. Remote Working: Terms for remote work arrangements, if applicable
4. Commission Structure: Detailed commission calculations for sales or similar roles
5. International Travel: Terms related to business travel for roles requiring frequent travel
6. Training Obligations: Training requirements and associated bonds, if applicable
7. Housing Allowance Terms: Specific terms related to housing benefits, if provided
8. Education Allowance: Terms related to education allowances for employees' children, if applicable
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Code of Conduct: Expected standards of behavior and professional conduct
5. Appendix A - Leave Policy: Detailed leave application and approval procedures
6. Appendix B - IT Usage Policy: Rules regarding use of company IT systems and equipment
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology
Healthcare
Retail
Manufacturing
Construction
Education
Professional Services
Hospitality
Real Estate
Media and Entertainment
Telecommunications
Energy
Transportation and Logistics
Consumer Goods
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Customer Service
Research and Development
Administration
Quality Assurance
Business Development
Project Management
Corporate Communications
Supply Chain
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Head
Senior Manager
Project Manager
Software Engineer
Sales Executive
Marketing Coordinator
Human Resources Officer
Financial Analyst
Administrative Assistant
Customer Service Representative
Operations Manager
Research Analyst
Technical Specialist
Account Manager
Business Development Executive
Legal Counsel
Quality Assurance Engineer
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