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Fixed Term Contract for United Arab Emirates

Fixed Term Contract 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 its implementing regulations. This template provides a structured framework for establishing fixed-term employment relationships in the UAE mainland, incorporating all mandatory provisions required by UAE labor law while maintaining flexibility for customization across different industries and roles. The document includes essential elements such as term duration, compensation, benefits, and termination provisions, all aligned with current UAE employment legislation and market practices.

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Fixed Term Contract

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What is a Fixed Term Contract?

This Fixed Term Contract Template has been developed to meet the requirements of UAE labor law, specifically Federal Decree-Law No. 33 of 2021, which mandated fixed-term employment contracts for all UAE mainland employers from February 2022. The template is designed for use when establishing new employment relationships or converting existing contracts to fixed-term agreements, with a maximum duration of three years (renewable). It incorporates all mandatory provisions required by UAE law, including working hours, leave entitlements, and end of service benefits, while providing flexibility to accommodate various industry-specific requirements and role-specific provisions. The document ensures compliance with UAE's Wage Protection System (WPS) and includes necessary provisions for both expatriate and UAE national employees.

What sections should be included in a Fixed Term Contract?

1. Parties: Identification of the employer and employee, including trade license details for the employer and passport/Emirates ID details for the employee

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

3. Definitions: Key terms used throughout the contract

4. Term and Employment: Contract duration, start date, and probation period details

5. Position and Duties: Job title, role description, and key responsibilities

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

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

8. Remuneration: Base salary, allowances, and payment method through WPS

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

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

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

12. Termination: Notice periods and grounds for termination

13. Confidentiality: Protection of employer's confidential information

14. Governing Law: UAE law application and jurisdiction

15. Entire Agreement: Contract completeness and amendment provisions

What sections are optional to include in a Fixed Term Contract?

1. Non-Compete: Restrictions on post-employment competition, used for senior positions or roles with access to sensitive information

2. Intellectual Property: IP rights assignment, needed for creative or technical roles

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

4. Remote Working: Terms for remote work arrangements, when applicable

5. International Travel: Travel requirements and allowances, for roles requiring travel

6. Training Obligations: Professional development requirements and cost implications

7. Emiratisation Provisions: Special terms for UAE national employees

8. Secondment Terms: For employees who may be seconded to other group companies

What schedules should be included in a Fixed Term Contract?

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

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

3. Schedule 3 - Company Policies: Key workplace policies and procedures applicable to the employee

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

5. Appendix A - Performance Metrics: KPIs and performance evaluation criteria

6. Appendix B - Benefits Summary: Detailed description of all employee benefits and eligibility 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 | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Employment Form

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Banking & Financial Services

Technology

Real Estate

Construction

Healthcare

Retail

Hospitality

Manufacturing

Professional Services

Education

Energy

Transportation & Logistics

Media & Entertainment

Telecommunications

Relevant Teams

Human Resources

Legal

Finance

Operations

Compliance

Management

Administration

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Sales Manager

Account Executive

Software Developer

Project Manager

Human Resources Manager

Financial Controller

Marketing Director

Operations Manager

Administrative Assistant

Technical Specialist

Customer Service Representative

Business Development Manager

Research Analyst

Legal Counsel

Product Manager

Quality Assurance Specialist

Graphic Designer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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