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Co Employment Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE labor law that establishes and regulates a co-employment relationship between a Professional Employer Organization (PEO), a client company (Worksite Employer), and an employee. This agreement outlines the division of employer responsibilities, employment terms, compliance requirements under UAE legislation, and the rights and obligations of all parties involved. It addresses crucial aspects such as compensation, benefits administration, workplace policies, visa sponsorship, and regulatory compliance while ensuring alignment with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations.

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What is a Co Employment Agreement?

The Co-Employment Agreement serves as a crucial legal framework for organizations operating in the UAE that wish to engage employees through a Professional Employer Organization (PEO) structure. This arrangement is particularly valuable for companies establishing or expanding their presence in the UAE market, as it provides a compliant method of employment while leveraging the PEO's local expertise and administrative capabilities. The agreement must align with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations, addressing key aspects such as visa sponsorship, employment terms, benefits administration, and regulatory compliance. It's commonly used when companies need flexible employment solutions, lack local entity registration, or require specialized employment management services while ensuring full compliance with UAE labor laws.

What sections should be included in a Co Employment Agreement?

1. Parties: Identification of all parties: the Professional Employer Organization (PEO), the Worksite Employer, and the Employee

2. Background: Context of the agreement, explaining the co-employment arrangement and the purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including specific UAE labor law terminology

4. Term and Commencement: Duration of the agreement and effective start date

5. Roles and Responsibilities: Detailed outline of each party's obligations and responsibilities in the co-employment arrangement

6. Employment Terms: Core employment conditions including position, duties, work location, and reporting structure

7. Compensation and Benefits: Salary, allowances, benefits, and which employer is responsible for each component

8. Working Hours and Leave: Work schedule, overtime arrangements, and various types of leave entitlements

9. Compliance and Governance: Obligations regarding UAE labor laws, work permits, and regulatory requirements

10. Confidentiality and Data Protection: Protection of confidential information and personal data handling requirements

11. Termination: Conditions and procedures for ending the co-employment arrangement

12. Dispute Resolution: Process for handling disagreements and specifying applicable jurisdiction

13. General Provisions: Standard clauses including notices, amendments, and governing law

What sections are optional to include in a Co Employment Agreement?

1. Non-Competition and Non-Solicitation: Restrictions on competitive activities and employee solicitation, used when protecting business interests is crucial

2. Intellectual Property Rights: IP ownership and transfer provisions, included when work involves creation of intellectual property

3. Performance Management: Standards and procedures for performance evaluation, included when specific performance metrics are crucial

4. Training and Development: Professional development obligations and responsibilities, used when specific training requirements exist

5. Insurance Coverage: Detailed insurance provisions and responsibilities, included when complex insurance arrangements are needed

6. Secondment Provisions: Terms for temporary assignment to different locations or entities, used when employee mobility is anticipated

7. Force Majeure: Provisions for unforeseen circumstances, included when additional clarity on force majeure events is needed

What schedules should be included in a Co Employment Agreement?

1. Schedule 1 - Job Description: Detailed description of the employee's role, responsibilities, and performance expectations

2. Schedule 2 - Compensation and Benefits Structure: Detailed breakdown of salary components, benefits, and payment arrangements

3. Schedule 3 - Company Policies: Relevant workplace policies of both the PEO and Worksite Employer

4. Schedule 4 - Service Level Agreement: Specific service standards and deliverables between the PEO and Worksite Employer

5. Schedule 5 - Compliance Checklist: List of required documents and compliance requirements under UAE law

6. Appendix A - Required Documentation: Copies or lists of required permits, visas, and other official documents

7. Appendix B - Contact Information: Key contact details for all parties and relevant departments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Document Type

Employment Contract

Cost

Free to use

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