VoxxArrive · UAE onboarding topic
UAE Labour Law (MOHRE) essentials for employers: fixed-term contracts and core hiring duties
Since Federal Decree-Law No. 33 of 2021 came into force on 2 February 2022, the UAE private sector runs on fixed-term (limited) contracts only - the old "unlimited" contract was abolished, and employers had until 31 December 2023 to convert existing staff. MOHRE is the regulator: every non-UAE-national hire needs a MOHRE work permit and a registered written contract before work begins. Two amendments have since raised the stakes - Decree-Law No. 20 of 2023 routed labour disputes through MOHRE first, and Decree-Law No. 9 of 2024 (in force 30 August 2024) lifted fines to AED 100,000–1,000,000, including per-worker penalties for fictitious ("ghost") employment and Emiratisation.
Steps
- Issue a MOHRE work permit before the person starts - For any non-UAE-national hire you must obtain a MOHRE-approved work permit before the employee can legally start. Free zones (DIFC, ADGM, DMCC, JAFZA, etc.) run their own permit/registration regimes rather than the mainland MOHRE system, so confirm which authority governs your entity.
- Use a fixed-term written contract - unlimited contracts no longer exist - Federal Decree-Law No. 33 of 2021 permits only fixed-term (limited) contracts; the 'unlimited' contract type was abolished. The contract must be in writing, in the MOHRE-approved form, and specify a definite term. MOHRE later removed the original statutory cap on contract length, but a definite term must still be stated and the contract is renewable by mutual consent.
- Register the contract with MOHRE and include all mandatory particulars - The registered contract must set out the employer's licence details, the employee's identity, job title and description, start date and term, basic salary plus allowances (in AED), working hours, leave, probation period and notice period. Give the employee a signed copy.
- Set probation correctly (Article 9) - maximum six months, no restart - Probation may not exceed six months from the start date and cannot be extended or restarted with the same employer. During probation the employer must give 14 days' written notice to terminate. An employee moving to another UAE employer must give 30 days' notice; one leaving the country must give 14 days - leaving without that notice triggers a one-year work-permit ban.
- Apply lawful working-hours and notice rules - Normal hours are 8 per day or 48 per week (Article 17), reduced by 2 hours daily in Ramadan. For post-probation termination, the notice period must be between 30 and 90 days (Article 43). Overtime is paid at the normal hourly rate +25%, rising to +50% for hours worked between 10pm and 4am.
- Pay wages through the Wages Protection System (WPS) - Mainland MOHRE-registered employers must pay salaries via the Wages Protection System so MOHRE can verify on-time, full payment; non-compliance carries penalties and can block new work permits.
- Handle disputes through MOHRE first (Articles 54, as amended) - Labour disputes must be filed with MOHRE, which attempts amicable settlement. Under the 2024 amendment MOHRE issues a binding decision on claims not exceeding AED 50,000; larger or unresolved claims are referred to the Court of First Instance. The limitation period to bring a claim is two years from the end of the employment relationship.
Timeline
Decree-Law No. 33/2021 came into force on 2 February 2022; the deadline to convert legacy unlimited contracts to fixed-term was extended from 2 February 2023 to 31 December 2023. Decree-Law No. 20 of 2023 took effect 1 January 2024 and Decree-Law No. 9 of 2024 on 30 August 2024. Operationally, a work permit and registered contract must be in place before the employee starts; exact MOHRE processing times vary by application type and whether the establishment has outstanding violations.
Cost & fees
MOHRE work-permit and contract fees are not fixed by the Labour Law itself - they vary by establishment classification, skill level, permit type and jurisdiction (mainland vs each free zone), so confirm current fees on the MOHRE portal or with the relevant free-zone authority. What the law does fix are penalties: under the 2024 amendment, violations carry fines of AED 100,000 to AED 1,000,000, and fictitious-employment fines are multiplied by the number of ghost workers, with any settlement requiring payment of at least 50% of the minimum fine plus return of improperly obtained incentives.
Your task slice
10 of the 57 onboarding tasks apply here.
Verify MOHRE establishment card is active and labour quota is available for the role
Establishment card / labour quota confirmation
Issue MOHRE-standard job offer letter and obtain the employee's signed copy
MOHRE job offer letter (signed)
Apply for the MOHRE work permit (labour card) via Tasheel/MOHRE portal
Work permit approval
Prepare fixed-term employment contract aligned to the signed offer
Employment contract (draft)
Set probation period in the contract (must not exceed 6 months, FDL 33/2021)
Employee signs the employment contract on Day 1
Signed employment contract
Issue employee handbook and code of conduct; capture acknowledgement (incl. gross-misconduct grounds)
Handbook acknowledgement
Register the signed employment contract with MOHRE within the statutory deadline
MOHRE-registered labour contract
Assemble audit-ready employee compliance file (contract, visa, EID, insurance)
Employee compliance file
Reset and communicate post-probation notice-period terms (30-90 days)
Some figures on this page vary by jurisdiction, zone or nationality, or could not be independently confirmed from a public source at time of writing - confirm the current figure with the regulator before relying on it.
Sources
- The Official Platform of the UAE Government (u.ae) - Employment laws and regulations in the private sector
- The Official Platform of the UAE Government (u.ae) - Working hours and overtime
- Clyde & Co - Significant amendments to the UAE Labour Law: Articles 54 and 60 (Federal Decree-Law No. 9 of 2024)
- Lexology - Conversion of Fixed Term Contract deadline extended for UAE Employers
- Mondaq - UAE Labour Law Amendments: Enhanced Penalties and Strengthened Employee Protections in 2024
- Chambers and Partners - The Notice Period under UAE Federal Decree by Law No. 33 of 2021
Frequently asked
Are unlimited-term contracts still allowed in the UAE?
No. Federal Decree-Law No. 33 of 2021 abolished the unlimited contract for the mainland private sector - only fixed-term (limited) contracts are permitted, renewable by mutual consent. Employers had until 31 December 2023 to convert existing staff, so any remaining unlimited contracts should already have been migrated.
Is there still a maximum length for a fixed-term contract?
The original law set a cap, but MOHRE subsequently removed the statutory maximum on contract duration. A definite term must still be stated in the contract; there is no longer a fixed ceiling on how long that term can be, and it can be renewed without limit.
How long can a probation period be, and what notice applies during it?
Probation cannot exceed six months from the start date and cannot be extended or restarted with the same employer (Article 9). During probation the employer must give 14 days' written notice to end the contract; an employee joining another UAE employer gives 30 days, and one leaving the country gives 14 days.
What are the notice-period rules for a normal (post-probation) termination?
Either party may terminate a fixed-term contract with written notice; the notice period must be no less than 30 days and no more than 90 days (Article 43).
What happens if we run 'ghost' employees to meet Emiratisation targets?
Fictitious employment - including fictitious Emiratisation - is a specific offence under the 2024 amendment. Fines run from AED 100,000 to AED 1,000,000 and are multiplied by the number of fictitious workers, plus repayment of any incentives obtained; MOHRE will only settle if the employer pays at least 50% of the minimum fine.