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Fixed Term Employment Agreement for United Arab Emirates

Fixed Term Employment Agreement Template for United Arab Emirates

A comprehensive employment agreement template designed to comply with UAE Federal Decree-Law No. 33 of 2021, which mandates all employment contracts in the UAE to be fixed-term with a maximum duration of three years. This agreement covers essential employment terms including remuneration, benefits, working hours, leave entitlements, and termination provisions while incorporating UAE-specific requirements such as end-of-service benefits calculations and probation period limitations. The document is structured to protect both employer and employee interests while ensuring compliance with UAE mainland labor regulations and mandatory employment provisions.

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What is a Fixed Term Employment Agreement?

This Fixed Term Employment Agreement template is designed for use in the United Arab Emirates, where all employment contracts must be fixed-term following the implementation of Federal Decree-Law No. 33 of 2021. The document is essential for formalizing employment relationships in the UAE mainland, providing a structured framework for terms of employment including salary, benefits, working hours, and termination provisions. It incorporates mandatory requirements such as the maximum three-year contract duration, end-of-service benefits calculations, and leave entitlements as prescribed by UAE labor law. The agreement is particularly relevant following the significant changes introduced to UAE employment law in 2022, which mandated the conversion of all employment contracts to fixed-term agreements and introduced new provisions for employee rights and employer obligations.

What sections should be included in a Fixed Term Employment Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship and confirmation of fixed-term nature

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, duties, reporting line, and fixed term duration (maximum 3 years under UAE law)

5. Probationary Period: Length of probation (maximum 6 months) and terms of termination during this period

6. Duties and Responsibilities: Detailed description of role, responsibilities, and performance expectations

7. Place of Work: Primary workplace location and potential for travel or relocation

8. Working Hours and Days: Standard working hours, days, and overtime provisions as per UAE labor law

9. Salary and Benefits: Basic salary, allowances, and statutory benefits including annual leave and sick leave

10. Public Holidays: Entitlement to UAE public holidays

11. Annual Leave: Annual leave entitlement and rules for taking leave

12. Sick Leave: Sick leave entitlement and notification requirements

13. Medical Insurance: Health insurance coverage as required by UAE law

14. Termination: Grounds and procedures for termination, notice periods, and end of service benefits

15. Confidentiality: Protection of company confidential information

16. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts

What sections are optional to include in a Fixed Term Employment Agreement?

1. Non-Compete and Non-Solicitation: Restrictive covenants, used when protecting business interests is crucial, must be reasonable in scope

2. Intellectual Property Rights: IP assignment provisions, used when employee may create intellectual property

3. Remote Working: Terms for remote work arrangements, if applicable

4. Commission Structure: For sales or commission-based roles

5. Performance Bonus: Details of any performance-related bonus schemes

6. International Travel: Terms for international travel requirements and compensation

7. Training Obligations: Professional development requirements and training bond terms

8. Housing Allowance: Terms of housing allowance if provided

9. Education Allowance: Terms of education allowance for employee's children if provided

10. Share Options: Details of any share option or equity participation schemes

What schedules should be included in a Fixed Term Employment Agreement?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and KPIs

2. Schedule 2 - Compensation Structure: Breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Code of Conduct: Expected standards of professional behavior

5. Appendix A - Visa and Work Permit Requirements: Documentation requirements for work authorization

6. Appendix B - Benefits Summary: Detailed overview of all benefits and eligibility criteria

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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