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Permanent Contract Template for United Arab Emirates

A comprehensive employment agreement governed by UAE labor law, specifically Federal Decree-Law No. 33 of 2021, establishing a permanent (unlimited term) employment relationship between an employer and employee. The contract details all essential employment terms including role responsibilities, compensation, benefits, working hours, leave entitlements, and termination provisions in compliance with UAE labor regulations. It includes mandatory provisions required by the Ministry of Human Resources and Emiratisation (MOHRE) and incorporates key protections for both employer and employee under UAE law.

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What is a Permanent Contract?

This Permanent Contract template is designed for use in the United Arab Emirates, specifically complying with Federal Decree-Law No. 33 of 2021 and its implementing regulations. It serves as the primary document establishing an unlimited-term employment relationship between UAE-based employers and their employees, whether UAE nationals or expatriates. The contract must be registered with the Ministry of Human Resources and Emiratisation (MOHRE) and includes all mandatory provisions required under UAE labor law, such as probation period, working hours, leave entitlements, and end of service benefits. It's structured to protect both employer and employee interests while ensuring compliance with local regulations, including recent reforms in UAE labor law that emphasize flexibility and employee protection.

What sections should be included in a Permanent 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 reference to any preceding arrangements

3. Definitions: Key terms used throughout the contract

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

5. Commencement and Duration: Start date and confirmation of permanent/unlimited term nature of contract

6. Probation Period: Length and terms of probation period (maximum 6 months under UAE law)

7. Place of Work: Primary workplace location and any mobility requirements

8. Working Hours: Standard working hours, days, and overtime provisions

9. Remuneration: Basic salary, allowances, and payment schedule through WPS

10. Annual Leave: Annual leave entitlement and procedures

11. Sick Leave: Sick leave entitlements and notification requirements

12. Other Leave Entitlements: Other statutory leaves including maternity, paternity, and study leave

13. Medical Insurance: Health insurance provisions as per UAE law

14. Confidentiality: Obligations regarding company confidential information

15. Intellectual Property: Ownership of work product and innovations

16. Non-Competition: Post-employment restrictions within UAE law parameters

17. Termination: Notice periods and grounds for termination

18. End of Service Benefits: Gratuity calculation and payment terms

19. Governing Law: Confirmation of UAE law application and jurisdiction

What sections are optional to include in a Permanent Contract?

1. Commission Structure: Used for sales roles or positions with variable compensation

2. International Travel: Include when role requires regular international travel

3. Housing Allowance: When specific housing benefits are provided

4. Education Allowance: When education benefits for employees' children are provided

5. Shift Work: For positions requiring shift work

6. Remote Working: When remote work arrangements are permitted

7. Car Allowance: When transportation benefits are provided

8. Performance Bonus: When bonus schemes are applicable

9. Training Obligations: When specific training requirements exist

10. Emiratisation Provisions: Special provisions for UAE national employees

What schedules should be included in a Permanent Contract?

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

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

3. Schedule 3 - Company Policies: Reference to key company policies applicable to the employment

4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines

5. Appendix A - Non-Competition Terms: Detailed post-employment restrictions and geographic scope

6. Appendix B - Confidential Information: Definition and examples of confidential information

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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