MOHRE extends deadline for Employment Contract Amendment

The New Labour Law – Employment Contract Deadline

The Ministry of Human Resources and Emiratisation (MOHRE) has extended the deadline for amending unlimited term employment contracts to fixed term contracts for mainland companies. The new deadline is 31^st December 2023 and all amendments should be made before the deadline.

For freezone companies, the deadline for the change varies depending on where your company is registered.  For example, DMCC and DSO companies should be compliant before 2^nd February 2023.  If you are unsure of your company’s deadline please get in touch.

What is involved? 

Announced by the Ministry of Human Resources and Emiratisation, the New Labour Law, Federal Decree Law No. 33 of 2021 came into effect on 2^nd February 2022.

According to the new law, all employment contracts must now be issued on a limited term basis, not exceeding three years.  This means that unlimited employment contracts are no longer allowed and any existing unlimited term employment contracts MUST be converted into a limited term contract.  The term of any employment contract can continue to be extended or renewed in accordance with an agreement between employer and employee and the new term shall be deemed as an extension and therefore added on when calculating the employee’s end of service.

How we can help

EER can assist you with coordinating any contractual conversions or replacements across your company to ensure you are in compliance with these requirements. Our expert team is well versed in the new regulations and can walk you through the processes that are relevant to your organisation and how best to complete the necessary changes.

If you would like to talk to one of our corporate services team about your options, please get in touch today on +971 (0)4 421 1819 or info@eerme.com.