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Contract Renewal Letter for United Arab Emirates

Contract Renewal Letter Template for United Arab Emirates

A Contract Renewal Letter is a formal document used in the United Arab Emirates to extend an existing employment relationship under UAE Federal Decree-Law No. 33 of 2021. This document serves as an official confirmation of the continuation of employment, outlining any updates to terms and conditions while ensuring compliance with UAE labor laws. It includes essential details such as the renewal period, any modifications to existing terms, and requirements for work permit/visa renewal where applicable. The letter forms a legally binding extension of the original employment contract and must adhere to specific formatting and content requirements under UAE employment legislation.

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What is a Contract Renewal Letter?

The Contract Renewal Letter is a crucial document in UAE employment relations, used when an employer wishes to extend an existing employment contract. Under UAE Federal Decree-Law No. 33 of 2021, employment contracts must be clearly documented, with renewals explicitly stated and agreed upon by both parties. This document is particularly important in the UAE context where fixed-term contracts are standard practice and visa sponsorship often needs to be aligned with contract renewal periods. The letter should be prepared at least one month before the existing contract's expiry date, incorporating any changes to employment terms while ensuring compliance with local labor laws. It serves multiple purposes: maintaining legal compliance, documenting employment continuation, updating employment terms if necessary, and supporting visa renewal processes where required.

What sections should be included in a Contract Renewal Letter?

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee

2. Original Contract Reference: Clear identification of the existing employment contract being renewed, including its original date and any previous renewals

3. Renewal Statement: Express statement of the intention to renew the employment contract

4. Renewal Period: Specific duration of the renewal period as per UAE Labor Law requirements

5. Continuation of Terms: Confirmation that all other terms and conditions from the original contract remain in force

6. Acknowledgment Request: Request for the employee's signature to indicate agreement to the renewal

7. Closing: Professional closing, including space for signatures of both employer and employee

What sections are optional to include in a Contract Renewal Letter?

1. Modified Terms: Section detailing any changes to existing terms and conditions, used when the renewal includes modifications to salary, benefits, or other conditions

2. Visa Status: Reference to work permit/visa renewal requirements, included when the employee requires visa sponsorship

3. Performance Recognition: Acknowledgment of employee's performance and contribution, included when the renewal is accompanied by positive feedback or promotion

4. Compliance Statement: Reference to specific UAE labor law provisions, included when significant changes are being made to the employment terms

What schedules should be included in a Contract Renewal Letter?

1. Updated Salary Structure: Detailed breakdown of revised compensation package, if any changes are being made

2. Job Description: Updated job description if role responsibilities have changed

3. Benefits Summary: Overview of current benefits package, particularly if any modifications have been made

4. Required Documentation Checklist: List of documents needed for processing the renewal, including visa-related requirements if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Service Letter

Cost

Free to use
Relevant legal definitions















Clauses













Relevant Industries

Banking and Financial Services

Real Estate and Construction

Oil and Gas

Healthcare

Technology and Communications

Retail and Hospitality

Education

Professional Services

Manufacturing

Tourism and Entertainment

Transportation and Logistics

Media and Advertising

Relevant Teams

Human Resources

Legal

Compliance

Administration

Personnel

Operations

Employee Relations

Recruitment

Workforce Management

Corporate Services

Relevant Roles

Human Resources Manager

Legal Counsel

HR Director

Compliance Officer

PRO (Public Relations Officer)

HR Business Partner

Office Manager

Department Director

Operations Manager

Recruitment Manager

Personnel Administrator

Legal Administrator

HR Coordinator

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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