New unified labour contract in UAE to prevent abuse

Dubai: A new unified labour contract, standardising employment terms and making them more transparent is expected to improve regulation and transparency of the UAE labour market.

The Standard Limited-Term Employment Contract, will come into effect on January 1, 2016, was drafted by the Ministry of Labour as part of the three new decrees, announced by the ministry on Monday.

The three ministerial decrees are aimed at enhancing the UAE labour market conditions and consolidating the contractual nature of labour relations.All employees across the country will be presented with a unified, standard, employment offer that contains clear and enforceable terms and conditions of employment, prior to the worker’s entry in the UAE.

The contract will need to be signed by both the employer and the worker.The contract, which is divided into 11 clauses, details the obligations and rights of both employer and employee.

The contract will explicitly state a worker’s profession, job title, basic remuneration allowances (all of which should be written in figures and words).One clause stipulates that the duration of the limited-term employment contract may not exceed two years.

The contract’s rules are still effective during the notice period ahead of the contract’s termination. The notice period, which can anywhere between one to three months, must be agreed upon by both parties signing the contract.All expenses related to enabling an employee to work for an employer must be borne by the latter. This may include: travel to the UAE and broker agency fees.