The Ministry of Human Resources and Emiratisation (MoHRE) has announced amendments to employment contracts.
Employment contracts, under the new amendments, must cover a defined term and can be renewed on both parties agreeing.
There will be no cap on how long the contracts should be.
The amendment aims to protect both parties, increase growth and stability in the labour market and enhance economic competitiveness in the UAE.
His Excellency Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation said, “The new amendments create an advanced ecosystem of mechanisms that boost the ease of doing business, productivity, and resilience within the labour market, while amplifying its attractiveness to the business owners and talents.”
The amendment will take effect in February 2023.