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Labour Contract Agreement for United Arab Emirates

Labour Contract Agreement Template for United Arab Emirates

This document is a comprehensive employment agreement governed by UAE Federal Decree-Law No. 33 of 2021, designed to establish and regulate the employment relationship between an employer and employee in the United Arab Emirates. It incorporates all mandatory provisions required by UAE labor law, including terms of employment, compensation, benefits, working hours, leave entitlements, and termination provisions. The agreement ensures compliance with local employment regulations while protecting both employer and employee interests, and must be registered with relevant authorities as per UAE requirements.

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What is a Labour Contract Agreement?

The Labour Contract Agreement is a fundamental document required for all employment relationships in the United Arab Emirates, as mandated by UAE Federal Decree-Law No. 33 of 2021. This agreement serves as the primary document governing the employer-employee relationship and must be registered with the Ministry of Human Resources and Emiratisation or relevant Free Zone authority. It outlines essential terms including job role, compensation, benefits, working conditions, and termination provisions, while ensuring compliance with UAE labor laws. The agreement is crucial for obtaining work permits and residency visas for expatriate employees and protecting both parties' rights and obligations throughout the employment relationship.

What sections should be included in a Labour Contract Agreement?

1. Parties: Identification of the employer and employee, including all details required by UAE labor law such as trade license number for employer and passport/Emirates ID for employee

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including defined terms from UAE labor law

4. Appointment and Duration: Position, employment status (limited/unlimited term), and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities

6. Place of Work: Primary workplace location and potential for travel/relocation

7. Working Hours and Days: Standard working hours, rest days, and overtime provisions as per UAE labor law

8. Remuneration and Benefits: Salary structure, payment timing, and statutory benefits

9. Annual Leave and Public Holidays: Leave entitlements and public holiday provisions

10. Sick Leave: Sick leave entitlements and notification procedures

11. Confidentiality: Protection of employer's confidential information and trade secrets

12. Termination: Notice periods and grounds for termination as per UAE labor law

13. End of Service Benefits: Calculation and payment of gratuity and other end of service entitlements

14. Governing Law: Explicit reference to UAE labor law and jurisdiction

What sections are optional to include in a Labour Contract Agreement?

1. Probationary Period: Include when a probationary period is required (up to 6 months under UAE law)

2. Non-Competition: Include when restricting post-employment activities, subject to UAE labor law limitations

3. Housing Allowance: Include when providing housing or housing allowance

4. Transportation Allowance: Include when providing transportation benefits

5. Commission Structure: Include for sales positions or roles with variable compensation

6. Remote Working Provisions: Include for positions allowing work from home or remote locations

7. Training Obligations: Include when specific training requirements or bonds are applicable

8. Intellectual Property Rights: Include for positions involving creative or technical work

9. Medical Insurance: Include details of medical insurance coverage where provided above statutory minimum

What schedules should be included in a Labour Contract Agreement?

1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities and requirements

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components 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 - Declaration Forms: Required acknowledgments and declarations by employee

6. Appendix B - Visa and Work Permit Requirements: Documentation requirements for employment visa processing

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

Employment Contract

Cost

Free to use
Relevant legal definitions









































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Relevant Industries

Banking and Financial Services

Technology

Healthcare

Retail

Construction

Manufacturing

Professional Services

Education

Hospitality

Real Estate

Energy

Transportation and Logistics

Media and Entertainment

Telecommunications

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Production

Quality Assurance

Business Development

Administration

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Software Engineer

Financial Analyst

Human Resources Manager

Sales Representative

Marketing Coordinator

Project Manager

Administrative Assistant

Operations Manager

Technical Specialist

Customer Service Representative

Research Analyst

Business Development Manager

Legal Counsel

Account Manager

Production Supervisor

Quality Control Inspector

Executive Assistant

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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