Know about the different types of employment contracts in the public and private sectors in the UAE.
Contracts for public sector are governed by Cabinet Decision No. 13 of 2012 regarding Executive Rules for Decree under Law No. 11 of 2008 (PDF). Articles 9 to 16 of the decision provide for the following types of contracts:
Full-time employment contract
Under a full-time employment contract, the employee works full working days or hours and receives the total salary and allowances allocated to the position.
Part-time employment contract
Under a part-time employment contract, the employee works limited hours of the total working days or hours and receives salary in proportion to the number of days or hours worked. In addition, he is entitled to benefits and allowances allocated to the position.
Temporary contract
Under a temporary employment contract, the employee works full working days or hours throughout the contract which is for a period of three months renewable for similar periods. He shall receive salary and allowances allocated to the position.
Special contract
Under a special employment contract, the employee is appointed by a minister for a high position in the ministry or entity on a contract of two years which can be renewed for another two years.
He shall receive salary and allowances which are in line with the ministry's needs and within budget. However, remuneration shall not exceed the maximum limit of special contracts which are determined by the ministry in coordination with Ministry of Finance and approved by Cabinet.
Under the UAE Labour Law No. 8 of 1980, there are two types of employment contracts. The difference lies in the provisions for end of service gratuity and termination.
In 2018, the UAE implemented the part-time contract system by virtue of a ministerial resolution.
Limited term contract (fixed-term)
In general, limited term contracts mention the start and end dates of the employment period. Unless the contract is renewed, it is automatically cancelled when it expires.
These contracts are adopted where an employer needs to engage employees for specific projects or specific duration.
According to recent reforms in the UAE's labour market, limited term contracts are for a maximum duration of 2 years, unlike 4 years as before. The contract must also include a notice for termination.
Refer to Ministerial Resolution No. 765 of 2015 on the Termination of Employment Relations (PDF 150 KB).
Unlimited term contracts
An unlimited term contract is open-ended, more flexible and commonly used in the UAE. It can be terminated with mutual consent or by giving a notice of 1 to 3 months. The parties involved must honour their obligations throughout the notice period.
Therefore, an employment relation is deemed to have ended without due process when either the employer or employee terminates the employment relation without complying with legally mandated procedures.
In this case, the wronged party may initiate legal action and compensation.
Related links from MoHRE:
Part-time contract
In 2018, Ministry of Human Resources and Emiratisation (MoHRE) implemented a new rule which allows the companies to recruit skilled workers from inside the country or from abroad under part-time contracts system. These types of contracts are limited only to skilled workers, namely holders of university degrees or higher and those who completed two or three years diploma in any technical or scientific field.
Under this new system, part-time contract employees can take several part-time jobs without the approval of the original or other secondary employers; however, they are obligated to take permit from the MoHRE.
The part-time contract is subject to same rules and penalties applicable to the regular employment contracts common in UAE: limited or unlimited.
Part-time contract may not be changed into a regular contract until after the end of the part-time employment contract.
Responsibilities of the original/primary employer
Under the part-time contract, the original employer bears:
Additionally, the original/primary employer may not require the worker to work more than the hours agreed upon or prevent him from working in a similar facility under the non-competition clause or for disclosure of the secrets of the facility.
Responsibilities of the additional/secondary employer
The additional employer has to pay the same fees charged for temporary work permits as administered by MoHRE.
Information sourced from Gulf News and Khaleej Times.
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