On 2 February 2022, the Federal Decree-Law No. (33) of 2021 on the Regulation of Employment Relationship (UAE Labour Law) came into force. The UAE Labour Law requires, pursuant to its article 68 (2), that all employers convert any existing employment on an unlimited term contract to a fixed term contract, within one year from the date of its enforcement (i.e., until 1 February 2023). The same Article stipulates that the Minister of Human Resources and Emiratization may extend the one-year period to additional period(s) as required by the public interest.
On 25 January 2023, the UAE government issued Ministerial Resolution No. (27) of 2023 which extends the deadline from 1 February 2023 to 31 December 2023. This will be a welcome relief for many employers who are working around the clock to meet the original February 2023 deadline. The Ministerial Resolution will come into effect from the date of publication in the official gazette, which is yet to be confirmed.
Employers who have not completed the migration to fixed term contracts should ensure they do so in good time before the end of this year.
For more details, please feel free to contact our UAE partner Zainab Aziz zaziz@meysan.com.
This article, together with any commentary, does not constitute legal advice. It is provided solely for information purposes on a complimentary basis, without consideration of any specific objectives, circumstances, or facts. It reflects then current views of the writer which may modify in time and based on differing objectives, circumstances, or facts. Access to this article does not form any attorney- client relationship.
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