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1 Year Contract Employment Template for United Arab Emirates

A comprehensive fixed-term employment contract template designed for use in the United Arab Emirates, compliant with Federal Decree-Law No. 33 of 2021 and related employment regulations. This document establishes a one-year employment relationship between employer and employee, detailing all essential terms including remuneration, benefits, working hours, leave entitlements, and termination provisions. The contract incorporates UAE-specific requirements such as end-of-service benefits calculation, visa obligations, and mandatory health insurance coverage, while providing flexibility to accommodate various industry-specific requirements and role-specific provisions.

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What is a 1 Year Contract Employment?

This 1 Year Contract Employment agreement is designed for use in the United Arab Emirates, where fixed-term employment contracts have become mandatory following the implementation of Federal Decree-Law No. 33 of 2021. The document serves as a comprehensive agreement between employers and employees, establishing a defined one-year term of employment while ensuring compliance with UAE labor laws and regulations. It should be used when hiring new employees or converting existing employment relationships to fixed-term contracts as required by UAE law. The contract includes essential provisions for salary, benefits, working conditions, and termination terms, while also addressing UAE-specific requirements such as probation periods (which cannot exceed six months), gratuity calculations, and visa sponsorship obligations. The agreement can be renewed upon expiry by mutual agreement between the parties, subject to applicable legal requirements.

What sections should be included in a 1 Year Contract Employment?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/identification numbers

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, responsibilities, and reporting relationships

5. Term of Employment: Duration of the contract (1 year) and any probation period details

6. Work Location: Primary workplace location and any flexibility arrangements

7. Working Hours: Standard working hours, rest periods, and overtime provisions

8. Remuneration: Basic salary, allowances, and payment schedule

9. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions

10. Medical Insurance: Health insurance coverage as per UAE law

11. Obligations of the Employee: Employee's duties, confidentiality, and compliance requirements

12. Obligations of the Employer: Employer's responsibilities under UAE law

13. Termination: Grounds for termination, notice periods, and procedures

14. End of Service Benefits: Calculation and payment of gratuity and other benefits

15. Governing Law: UAE law as the governing law and jurisdiction

What sections are optional to include in a 1 Year Contract Employment?

1. Non-Compete: Restrictions on post-employment competition, used when employee has access to sensitive information or clients

2. Intellectual Property: IP ownership provisions, needed for creative or technical roles

3. Commission Structure: Details of commission-based compensation, used for sales roles

4. Remote Working: Specific provisions for remote work arrangements

5. Training Requirements: Mandatory training and development obligations, used for specialized roles

6. Mobility Clause: Provisions for potential relocation or travel, used when job may require mobility

7. Performance Bonus: Performance-based incentive structures, used for management or sales roles

What schedules should be included in a 1 Year Contract Employment?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, 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 behavior and professional conduct

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

6. Appendix B - Non-Compete Terms: Detailed terms of non-compete restrictions if applicable

7. Appendix C - KPIs and Performance Metrics: Specific performance indicators and evaluation criteria

Authors

Alex Denne

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

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use

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