The Contractual Employee Agreement is a fundamental legal document used in the United Arab Emirates to establish and regulate the employment relationship between employers and employees. This agreement is essential for compliance with UAE Federal Decree-Law No. 33 of 2021 and its implementing regulations, which govern all aspects of employment relationships in the UAE. The document is used when hiring both UAE nationals and expatriate workers, incorporating mandatory provisions required by UAE labor law while allowing for customization based on specific role requirements and company policies. It serves as the primary reference point for both parties' rights and obligations throughout the employment relationship, covering crucial aspects such as probation periods, compensation, working hours, leave entitlements, and termination procedures. The agreement must be drafted in Arabic or bilingual format (Arabic-English) to be legally enforceable in the UAE.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Position title, employment classification, start date, and duration (limited or unlimited term)
5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities
6. Place of Work: Primary workplace location and any flexibility arrangements
7. Working Hours: Standard working hours, rest periods, and overtime provisions as per UAE law
8. Probation Period: Length and terms of the probation period (maximum 6 months under UAE law)
9. Remuneration and Benefits: Salary, allowances, bonuses, and other benefits
10. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
11. Medical Insurance: Health insurance coverage as required by UAE law
12. Termination: Notice periods and grounds for termination as per UAE law
13. End of Service Gratuity: Calculation and payment of end of service benefits
14. Governing Law: Confirmation of UAE law as governing law and jurisdiction
15. Entire Agreement: Standard boilerplate confirming this is the complete agreement between parties
1. Intellectual Property Rights: For roles involving creative work, innovation, or design
2. Confidentiality Obligations: For positions with access to sensitive information
3. Non-Competition: For senior positions or roles with access to trade secrets (subject to UAE law restrictions)
4. Non-Solicitation: For client-facing or management roles
5. Remote Working: For positions allowing work from home or flexible locations
6. Commission Structure: For sales or commission-based roles
7. Performance Targets: For roles with specific KPIs or performance metrics
8. Training Requirements: For positions requiring specific certifications or ongoing training
9. Mobility Clause: For roles requiring travel or potential relocation
10. Share Options/Long-term Incentives: For senior executives or key personnel
1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities and requirements
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria
5. Schedule 5 - Grievance Procedures: Process for raising and addressing workplace grievances
6. Appendix A - Code of Conduct: Company's code of conduct and ethical standards
7. Appendix B - IT and Communications Policy: Rules regarding use of company IT systems and communications
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