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5 Year Employment Contract for United Arab Emirates

5 Year Employment Contract Template for United Arab Emirates

A comprehensive 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 fixed-term contract spans five years and includes all mandatory provisions required by UAE labor law, including terms regarding probation period, working hours, leave entitlements, and end-of-service benefits. The document incorporates specific UAE requirements such as wage protection system compliance and mandatory health insurance coverage, while providing flexibility for additional benefits and allowances common in UAE employment relationships.

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What is a 5 Year Employment Contract?

This 5 Year Employment Contract template is designed for use in the United Arab Emirates when establishing long-term employment relationships under the current UAE labor law framework. The document is particularly relevant following the introduction of Federal Decree-Law No. 33 of 2021, which mandated fixed-term employment contracts. The template incorporates all essential elements required by UAE legislation, including statutory benefits, leave entitlements, and end-of-service gratuity calculations. It is suitable for both UAE mainland and free zone companies, accommodating both local and expatriate employment relationships, and can be customized to include various allowances and benefits common in UAE employment packages.

What sections should be included in a 5 Year Employment Contract?

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

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

3. Definitions: Key terms used throughout the contract defined for clarity

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

5. Term and Duration: Specification of the 5-year term, start date, and any renewal provisions

6. Probation Period: Details of the probationary period (maximum 6 months as per UAE law)

7. Remuneration: Base salary, payment frequency, and method of payment through WPS

8. Working Hours and Location: Standard working hours, days, and primary work location

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

10. Benefits: Mandatory benefits including health insurance and end-of-service gratuity

11. Confidentiality: Obligations regarding company confidential information

12. Termination: Grounds and procedures for contract termination as per UAE law

13. Governing Law: Specification of UAE law as governing law and jurisdiction

14. Entire Agreement: Standard boilerplate confirming this as the complete agreement

What sections are optional to include in a 5 Year Employment Contract?

1. Housing Allowance: Used when the employer provides housing or housing allowance

2. Transportation Allowance: Used when specific transportation benefits are provided

3. Commission Structure: For sales or similar roles with variable compensation

4. Non-Compete: Restrictions on post-employment competition (subject to UAE law limitations)

5. Relocation Terms: For international hires requiring relocation assistance

6. Education Allowance: When schooling benefits are provided for employee's children

7. Performance Bonus: Details of any performance-based bonus schemes

8. Remote Work Provisions: When hybrid or remote working arrangements are permitted

What schedules should be included in a 5 Year Employment Contract?

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: Reference to key company policies applicable to the employee

4. Schedule 4 - Commission/Bonus Scheme: Detailed terms of any variable compensation

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - Benefits Summary: Detailed description of all benefits and allowances

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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