UAE Employment Contracts in 2026: Fixed-Term Rules, Probation, Notice and Termination

Every employee on a UAE mainland work permit has a contract registered with the Ministry of Human Resources and Emiratisation, and almost every dispute that reaches MOHRE turns on what that contract says. Since the 2022 labour law, the rules are different from what many employers and employees remember: unlimited contracts are gone, probation exits have new notice rules, and notice periods have a legal floor and ceiling. This guide is for business owners hiring their first staff, HR teams updating templates, and employees checking their rights in 2026. It covers contract types, required terms, probation, notice, termination and the AED cost of getting it wrong.

Quick answer

A UAE employment contract must be a fixed-term contract on a MOHRE-approved template, in Arabic plus a language the employee understands, matching a legal work pattern (full-time, part-time, temporary or flexible). Probation can last up to 6 months, and notice must be between 30 days and 90 days.

• No maximum term since 2022 — renew or extend as often as you agree

• Employer ends probation with 14 days written notice; employee moving to a UAE employer gives one month

• Skipping notice costs the wage for the unserved period

• Dismissal without notice only in the 10 cases in Article 44, after a written investigation

• Unlawful (retaliatory) termination: up to three months' wage compensation

The legal framework in 2026

Private-sector employment on the mainland is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, in force since 2 February 2022, and its Executive Regulation, Cabinet Resolution No. 1 of 2022. The law has been amended three times:

• Decree-Law No. 14 of 2022 removed the three-year maximum term for fixed-term contracts.
• Decree-Law No. 20 of 2023 let MOHRE decide labour claims of up to AED 50,000 itself, with binding effect.
• Decree-Law No. 9 of 2024, in force from 30 August 2024, extended the time limit for labour claims to two years after the end of employment, moved appeals against MOHRE decisions to the Court of First Instance, and raised fines for core employer violations to AED 100,000–AED 1,000,000.

Article 3 applies the law to all establishments, employers and workers in the UAE private sector, which in practice includes most free zone companies. The DIFC and ADGM are the exceptions: as financial free zones with their own legislation, their employers use the DIFC Employment Law and the ADGM Employment Regulations instead. Federal and local government employees, the armed forces, police and security services, and domestic workers are outside the law.

Two basic rules sit underneath everything else. Nobody may work in the UAE without a MOHRE work permit (Article 6), and the employer may not charge the worker any recruitment or employment fees or costs, directly or indirectly. The employer also may not hold on to the worker's official documents, such as a passport (Article 13).

UAE employment contract rules at a glance

Fixed term

Only contract type allowed

No maximum since Decree-Law 14/2022

6 months

Maximum probation

30 days–90 days

Notice period range

Art. 43

8 hours a day / 48 a week

Normal working hours

Art. 17

30 days

Annual leave after one year

Art. 29

Fixed-term contracts: how long, renewals and old unlimited contracts

Article 8 says every employment contract is concluded for a specified period, renewable by agreement between the parties. The original 2021 text capped the term at three years; Decree-Law No. 14 of 2022 removed the cap, so the parties now agree the length. Any fixed length the two sides agree is lawful.

Renewals and extensions don't restart the clock. The new term is added to the original for calculating continuous service, which matters for gratuity and annual leave. If both sides simply keep working after the term ends without signing anything, the original contract is treated as implicitly extended on the same terms.

Contracts signed under the old 1980 law could be "unlimited". Employers had to convert them to fixed-term contracts — originally by 1 February 2023, extended by Ministerial Resolution No. 27 of 2023 to 31 December 2023. Any contract still described as unlimited is out of date and should be replaced on MOHRE's system. Converting did not end the employment relationship, so service under the old contract still counts.

Work patterns and MOHRE contract templates

Article 7 of the law recognises four work patterns, and the Executive Regulation adds models within them:

• Full-time — one employer, full daily hours on every working day.
• Part-time — one or more employers, for a set number of hours or days. A part-time worker can hold contracts with several employers, each with its own MOHRE permit.
• Temporary — work for a defined period or a specific task that ends when the task is done.
• Flexible — hours or days that change with workload and the employer's operational needs.
• Remote work and job sharing — the Executive Regulation's models in which work is done wholly or partly outside the workplace, or tasks and pay are divided between two or more workers.

The Executive Regulation requires contracts to follow MOHRE-approved templates: full-time, part-time, temporary, flexible, remote and employment-sharing contracts, plus any others the ministry adds. The parties may add clauses, provided they comply with the law; they can't remove statutory rights. Changing pattern — say, from full-time to part-time — needs both parties' agreement, settlement of all dues under the first contract and MOHRE's procedures.

Article 66 makes Arabic the official language of the contract. Where the employee doesn't read Arabic, the contract must also be in a language they understand, and the Arabic text prevails if the two differ.

What the contract must contain

The Executive Regulation lists the minimum contents of a contract. At the least it must show:

• the employer's name and address, and the employee's name, nationality, date of birth and qualification;
• the job title and place of work;
• the start date and the contract term;
• working hours and rest days;
• any probation period;
• the wage, split into basic wage and allowances;
• annual leave entitlement;
• the notice period;
• the procedure for ending the contract.

Two of these items deserve care. Basic wage drives gratuity, unused leave pay and overtime, so the split between basic and allowances has real long-term cost. And the registered wage is what MOHRE checks against salary payments in the Wage Protection System. If pay changes, amend the contract on MOHRE's system so the two match; an employee can prove a higher agreed wage by any means of proof, and a mismatch undermines your position in any dispute.

The employer must keep each employee's file for at least two years after their service ends (Article 13).

Hiring on a MOHRE contract

1. 1

   Agree the offer

   Agree job title, term, basic wage, allowances, hours, probation and notice in writing.

2. 2

   Apply for the work permit

   Apply through MOHRE's channels under your establishment. No work may start before the permit.

3. 3

   Sign the MOHRE contract

   The employee signs the MOHRE template contract electronically; it is registered against the permit.

4. 4

   Complete residence formalities

   Medical test, Emirates ID and residence visa through the immigration authority.

5. 5

   Set up payroll

   Register the employee with your WPS agent, and with GPSSA if they are an Emirati.

   How WPS works

Probation: the six-month rules

Article 9 allows a probation period of up to 6 months from the first day of work, and only once with the same employer. If the employee passes probation and carries on working, the contract simply continues and the probation period counts as service.

The exit rules are asymmetric:

A foreign employee who leaves the country during probation without following these rules can be refused a new work permit for one year, although MOHRE can exempt some categories. Employees on probation don't get paid sick leave, though the employer may grant unpaid sick leave on a medical report.

Example — ending probation

A Sharjah retailer hires a merchandiser on AED 7,000 a month (AED 4,500 basic). After three months it decides she isn't suited to the role. It must give 14 days written notice. If it wants her to leave the same day, it pays her about 14 days' wage instead — roughly AED 3,267 (AED 7,000 × 14 ÷ 30) — plus salary to date and any accrued leave. No gratuity is due because she hasn't completed a year.

Notice periods and notice pay

Outside probation, either party may end a fixed-term contract for a legitimate reason by giving written notice. Article 43 sets the rules:

• The notice in the contract must be at least 30 days and at most 90 days, and the same for both sides unless a difference favours the employee.
• The contract stays in force during notice. The employee gets their full wage at the last rate and works if the employer asks.
• The parties can agree to waive or shorten notice, but the employee keeps the right to be paid for the full notice period agreed in the contract.
• If the employer gives notice, the employee may take one unpaid day a week to look for a job, with three days' warning.
• Whoever doesn't give or serve the notice pays the other a notice allowance equal to the wage for the full notice period or the part not served — even if no harm is caused.
• If notice is given while the employee is on leave, it starts the day after their scheduled return unless both agree otherwise (Article 35).

Notice pay is calculated on the last wage, which in the law includes allowances — unlike gratuity, which uses basic wage only.

Example — paying in lieu of notice

A Dubai software company ends the contract of a developer whose contract has a 60-day notice period. Her last total wage is AED 18,000 (AED 11,000 basic). The company wants her to stop work immediately.

• Notice allowance: 2 months × AED 18,000 = AED 36,000
• Gratuity for 4 years 6 months: 4.5 × 21 × (AED 11,000 ÷ 30) = AED 34,650
• Plus salary to the last day and unused leave at basic wage

Had she resigned and walked out without serving notice, she would owe the company AED 36,000, and the company could set it against her dues within the limits of the law.

Ending the contract: who pays what

Situation	Notice	Gratuity	Extra
Expiry without renewal	Not needed	Yes (1+ year)	—
Resignation with notice	Employee serves 30 days–90 days	Yes (1+ year)	—
Employer terminates with notice	Employer gives notice or pays in lieu	Yes (1+ year)	1 unpaid job-search day a week
Dismissal under Art. 44	None	Yes, less legal deductions	Written investigation required
Employee leaves under Art. 45	None	Yes	Employer breach must be reported
Unlawful termination (Art. 47)	Notice pay due	Yes	Up to three months' wage

Expiry without renewal

Notice

Not needed

Gratuity

Yes (1+ year)

Extra

—

Resignation with notice

Notice

Employee serves 30 days–90 days

Gratuity

Yes (1+ year)

Extra

—

Employer terminates with notice

Notice

Employer gives notice or pays in lieu

Gratuity

Yes (1+ year)

Extra

1 unpaid job-search day a week

Dismissal under Art. 44

Notice

None

Gratuity

Yes, less legal deductions

Extra

Written investigation required

Employee leaves under Art. 45

Notice

None

Gratuity

Yes

Extra

Employer breach must be reported

Unlawful termination (Art. 47)

Notice

Notice pay due

Gratuity

Yes

Extra

Up to three months' wage

How a contract can end

Article 42 lists the ways a contract ends: written agreement of both parties; expiry of the term without renewal; either party's decision with proper notice; the employer's death where the contract depended on them; the employee's death or permanent total disability; a final prison sentence of at least three months; permanent closure of the business; bankruptcy or economic reasons that stop the business; and the employee failing, for reasons beyond the employer's control, to meet the conditions for renewing the work permit.

Dismissal without notice

Article 44 lets the employer dismiss without notice only after a written investigation and with a written, reasoned decision handed to the employee, and only where the employee:

1. impersonated someone or submitted forged documents;
2. caused gross material loss by a mistake, or deliberately damaged the employer's property and admitted it (reported to MOHRE within 7 working days);
3. broke posted safety instructions they had been told about;
4. kept failing in their basic duties despite a written investigation and two warnings;
5. disclosed a work secret causing loss or for personal gain;
6. was drunk or under the influence of drugs at work, or committed an act against public morals at work;
7. assaulted the employer, a manager or a colleague at work;
8. was absent without a valid reason for more than 20 intermittent days in a year or more than 7 consecutive days;
9. exploited their position illegally for personal gain;
10. joined another establishment without following the rules.

Even then, the current law doesn't remove gratuity; the employer can only deduct amounts legally owed.

Dismissal without notice (Article 44)

Step 1

Incident in one of the 10 listed cases

Step 2

Written investigation with the employee

Step 3

Written, reasoned dismissal decision

Step 4

Final dues

within 14 days, gratuity included

Leaving without notice

Article 45 lets the employee leave without notice and keep all end-of-service rights if the employer breaches the contract or the law and doesn't fix it within 14 working days of MOHRE notifying it; if the employer assaults or harasses the employee (reported within 5 working days); if there is a grave danger at work the employer knows about and doesn't remove; or if the employee is told to do fundamentally different work without written consent.

Unlawful termination

Article 47 makes termination unlawful if it is because the employee filed a serious complaint with MOHRE or a lawsuit against the employer that proves valid. The court sets fair compensation based on the type of work, the harm and the length of service, capped at three months' wage at the last wage — on top of notice pay and gratuity. For an employee on AED 12,000 a month, the maximum is AED 36,000. Article 30 separately bans dismissing a woman because of pregnancy or maternity leave.

Hours, leave and other terms the contract can't undercut

The contract can be more generous than the law but never less. The statutory floors include:

• Working hours: normally no more than 8 hours a day / 48 a week (Article 17), with a break after five consecutive hours. Overtime is capped at two hours a day and paid at basic wage plus at least 25%, or 50% between 10 pm and 4 am (except for shift workers).
• Weekly rest: at least one paid day off a week (Article 21).
• Annual leave: 30 days a year after one year's service, two days a month between six months and a year, and pay for unused leave on exit calculated on basic wage (Article 29).
• Sick leave: after probation, up to 90 days a year — 15 days on full pay, 30 on half pay and the rest unpaid (Article 31).
• Maternity leave: 60 days — 45 on full pay and 15 on half pay (Article 30) — plus five working days' parental leave for either parent within six months of a birth (Article 32).
• Deductions: only in the cases Article 25 lists, and never more than 50% of the wage in total.
• Final dues: paid within 14 days of the contract ending (Article 53).

Statutory leave at a glance

Leave	Entitlement	Pay
Annual	30 days after 1 year; 2 days a month from 6 months	Full
Sick (after probation)	Up to 90 days a year	15 full, 30 half, rest unpaid
Maternity	60 days	45 full, 15 half
Parental	5 working days within 6 months of birth	Full
Bereavement	5 days (spouse) / 3 days (close relative)	Full

Annual

Entitlement

30 days after 1 year; 2 days a month from 6 months

Pay

Full

Sick (after probation)

Entitlement

Up to 90 days a year

Pay

15 full, 30 half, rest unpaid

Maternity

Entitlement

60 days

Pay

45 full, 15 half

Parental

Entitlement

5 working days within 6 months of birth

Pay

Full

Bereavement

Entitlement

5 days (spouse) / 3 days (close relative)

Pay

Full

Non-compete clauses

Where the job gives the employee access to clients or trade secrets, the contract may include a non-compete, limited in time, place and type of work to what protects the employer's legitimate business and lasting no more than two years after the contract ends (Article 10). It is void if the employer ends the contract in breach of the law, and the Executive Regulation adds that it doesn't apply if the contract ends during probation. The parties can agree in writing to drop it, and the employee can be released by paying up to three months' wages with the former employer's written approval. The employer must bring any claim within one year of discovering the breach and must prove its loss.

Common contract mistakes and how to fix them

Using an old unlimited template. Replace it with a fixed-term MOHRE contract and renew as needed.

Side letters that contradict the MOHRE contract. An offer letter promising AED 15,000 while the MOHRE contract shows AED 10,000 invites a dispute. Register the real figures.

Basic wage set unrealistically low. It reduces gratuity, leave pay and overtime, and staff notice — a very low basic share is a common reason for disputes at exit.

Probation longer than six months, or a second probation. Both are invalid. A promoted employee doesn't start a new probation with the same employer.

Notice clauses outside 30–90 days. A one-week or six-month clause is unenforceable as written.

Firing on the spot without an investigation. Even in an Article 44 case, skipping the written investigation and reasoned decision exposes the employer to claims for notice pay and compensation.

Holding passports. Article 13 bans withholding official documents. Offer a secure locker the employee controls instead.

If a dispute arises, the employee or employer files a complaint with MOHRE. MOHRE decides claims up to AED 50,000 itself; either side can challenge its decision in court within 15 working days. Claims must be brought within two years of the end of employment, and workers' claims up to AED 100,000 are free of court fees.

Contract review checklist

0/9

• MOHRE fixed-term template for the correct work pattern
• Arabic text plus a language the employee understands
• Basic wage and each allowance stated separately
• Probation no longer than 6 months
• Notice period between 30 and 90 days, same for both sides
• Working hours, rest days and leave at or above the legal minimum
• Non-compete limited in time (max 2 years), place and activity
• No recruitment costs charged to the employee
• Registered wage matches the WPS salary

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Official links

• MOHRE — laws and regulationsDecree-Law 33/2021 with amendments and Executive Regulation
• UAE Legislation portal — Decree-Law 33 of 2021Official English translation
• MOHRE — services and complaintsWork permits, contracts, labour complaints (600590000)
• DIFC Employment LawFor DIFC employers only

What to do next

If you're hiring, draft each offer around the MOHRE template, decide the basic-to-allowance split deliberately, and set probation and notice inside the legal limits. If you already employ staff, check that no contract is still "unlimited", that registered wages match what you pay through WPS, and that your dismissal process includes a written investigation. Then budget for the end of each contract with our UAE gratuity guide, and if you have 50 or more staff, read up on Emiratisation targets.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Are unlimited contracts still allowed in the UAE?

No. Under Federal Decree-Law No. 33 of 2021, as amended by Decree-Law No. 14 of 2022, every private-sector employment contract must be for a specified term, renewable by agreement. The original three-year cap was removed in 2022, so the parties choose the length. Employers had until 31 December 2023 to convert old unlimited contracts.

What is the maximum probation period in the UAE?

6 months from the first day of work, and only once with the same employer. During probation the employer can end the contract with 14 days written notice. An employee who wants to move to another UAE employer must give one month notice, and one leaving the country must give 14 days. Probation counts towards service for gratuity if you stay on.

What is the notice period under UAE labour law?

Whatever the contract says, as long as it is between 30 days and 90 days, and normally the same for both sides. The contract stays in force during notice and the employee is paid in full. Whoever fails to give or serve notice pays the other side the wage for the unserved period. During employer notice the employee may take one unpaid day a week to look for work.

Can my employer terminate my contract without notice?

Only in the cases listed in Article 44 of the Labour Law — for example forged documents, serious breaches after written warnings, disclosing trade secrets, assault at work, being drunk at work, or more than 20 intermittent or 7 consecutive days of unexcused absence a year. The employer must first hold a written investigation and give a written, reasoned decision. Gratuity is still payable.

Is a non-compete clause enforceable in the UAE?

It can be, if it is limited in time, place and type of work to what protects the employer's legitimate interests, and lasts no more than two years after the contract ends. It falls away if the employer ends the contract in breach of the law, or if the contract ends during probation, and an employee can be released by paying up to three months' wages with the employer's written approval.

What happens if I'm fired for filing a complaint?

That termination is unlawful under Article 47. If MOHRE or the court finds it was because of a genuine complaint or lawsuit, the employer pays fair compensation of up to three months' wage, on top of notice pay and gratuity. Claims must be filed within two years of the end of employment.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments (consolidated English text) — Ministry of Human Resources and Emiratisation (archived copy) · accessed 12 October 2026
2. 2.Federal Decree-Law No. 33 of 2021 (English translation, original text) — FAO FAOLEX database · accessed 12 October 2026
3. 3.Cabinet Resolution No. 1 of 2022 — Executive Regulation of the Labour Law (annotated English text) — Shushin UAE Legal Notes · accessed 12 October 2026
4. 4.UAE: new amendment to remove the three-year cap on fixed-term employment contracts — DLA Piper · accessed 12 October 2026
5. 5.UAE extends grace period for employees to transition to fixed-term contracts to 31 December 2023 — Squire Patton Boggs · accessed 12 October 2026
6. 6.Significant amendments to the UAE Labour Law: Articles 54 and 60 — Clyde & Co · accessed 12 October 2026
7. 7.Ministerial Resolution No. 598 of 2022 concerning the Wages Protection System — UAE Government portal (archived copy) · accessed 12 October 2026