Hi - Can anyone help me with the hiring practices in the UAE. Particularly, i’d like to know about the Limited / Unlimited Contract (is it mentioned on their appointment letter?) and Work Permit for the candidate. I’d like to connect one-on-one with anyone who knows the hiring process.
Thanks!
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Hi Mamta,
As of now, we only have limited contracts in UAE as per the new Labor Law.
I can share you what I know…
My email: ludymar.bernal@lindner-group.com (+971563357365)
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As per my limited knowledge, Yes. In the UAE, the type of employment contract (limited or unlimited) is usually mentioned on the employee’s appointment letter. The appointment letter is a legally binding document that outlines the terms and conditions of employment, including the start date, job title, salary, benefits, working hours, and other relevant information.
If an employee is offered a limited contract, the appointment letter should clearly state the start and end dates of the contract, as well as any conditions for renewal or termination. The letter should also mention the compensation that the employee will receive upon the completion of the contract, which is typically referred to as an “end-of-service gratuity.”
If the employee is offered an unlimited contract, the appointment letter should state that the contract is open-ended and that either party may terminate the employment relationship with notice or a valid reason. The letter should also specify the notice period required for termination, which is typically one month for employees who have been employed for less than five years, and three months for employees who have been employed for more than five years.
Specimen Appointment Letter - LImited Contract
[Your Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, Country]
Dear [Employee Name],
We are pleased to offer you the position of [Job Title] at [Company Name]. Your employment will be on a limited contract basis, effective from [Start Date] to [End Date]. This contract may be renewed at the discretion of the company and based on your performance.
Your compensation for this position will be [Salary], payable in monthly installments. In addition, you will be entitled to [Benefits Package] as per the company’s policies.
Your duties and responsibilities will include, but not be limited to:
[List of job duties and responsibilities]
As an employee of [Company Name], you will be required to comply with all company policies and procedures, as well as all applicable laws and regulations.
At the end of your contract, you will be entitled to an end-of-service gratuity in accordance with UAE labor law. This gratuity will be calculated based on your basic salary and the length of your service with the company.
Please indicate your acceptance of this offer by signing and returning a copy of this letter, along with any other required documents, by [Date]. We look forward to welcoming you to our team.
Sincerely,
[Your Name]
[Your Title]
[Company Name]
Specimen Appointment Letter - UnlImited Contract
[Your Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, Country]
Dear [Employee Name],
We are pleased to offer you the position of [Job Title] at [Company Name]. Your employment will be on an unlimited contract basis, effective from [Start Date].
Your compensation for this position will be [Salary], payable in monthly installments. In addition, you will be entitled to [Benefits Package] as per the company’s policies.
Your duties and responsibilities will include, but not be limited to:
[List of job duties and responsibilities]
As an employee of [Company Name], you will be required to comply with all company policies and procedures, as well as all applicable laws and regulations.
Either party may terminate your employment relationship by providing [Notice Period] days’ notice or a valid reason. If the company terminates your employment without a valid reason, you will be entitled to compensation in accordance with UAE labor law.
Please indicate your acceptance of this offer by signing and returning a copy of this letter, along with any other required documents, by [Date]. We look forward to welcoming you to our team.
Sincerely,
[Your Name]
[Your Title]
[Company Name]
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Dear Sree,
You are right, but since the ruling out of the new labor law, UAE is no longer issuing an unlimited contract - only limited contracts.
We also need to consider if where is the employment - if it is under Mainland or Free Zone - as they also have different rules that needs to be followed.
Sharing some basic process:
Note the following general process:
- we provide 2 things for employees - 1 labor card + contract (mainland) and the employment visa
- these 2 process are different but connected, the visa is your eligibility to be in UAE and the labor contract is your eligibility to work. Someone may have his own visa (self sponsored visa, golden visa, green visa, etc) so employers will only need to provide the labor contract
- First to provide your employee is an internal offer letter mentioning all benefits (note: salary is broken down into basic & allowances (housing or transportation) it may be 60%- 40%- consider that all benefits accrue from the basic
- Once the offer letter is accepted, then employer need to apply for the labor contract (MOHRE will provide an offer letter and an employment contract), then employer will apply for the needed visa if required
- After all is approved and finalized, salary needs to be submitted via WPS which is monitored by MOHRE
in your employment, you might want to consider giving the person a remote work visa, if your company is registered here.
This is the link for immigration:
https://www.gdrfad.gov.ae/en
This is the link for labor:
https://www.mohre.gov.ae/en/home.aspx
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Yes, read this regarding end of unlimited contracts.
The law also stipulates that unlimited employment contracts are to be converted into fixed-term employment contracts, in accordance with this decree law, within one year of the effective date of the existing contract and may be extended by the Cabinet for further periods as required in public interest.
https://u.ae/en/information-and-services/jobs/employment-contracts-duration-and-models-in-the-private-sector
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