Employment contracts, probation and core terms in the UAE
A UAE private sector employee needs a written, fixed-term contract on MoHRE's approved forms. Probation can last up to 6 months, once per employer, and either side must give written notice to end it. Core statutory terms include a 48-hour week, overtime at 25% above basic pay, 30 days' annual leave and up to 90 days' sick leave a year.
UAE contracts and probation
- MoHRE contract within 14 days
- Probation up to 6 months
- Non-competes limited to 2 years
Emiratis in the private sector now have a AED 6,000 minimum wage
What happened
MoHRE set the minimum monthly wage for Emiratis working in the private sector at AED 6,000, effective 1 January 2026. It sits alongside the duty to issue a UAE national work permit, sign a MoHRE-compliant contract and pay through the Wages Protection System.
What it means for you
Any contract for an Emirati hire must pay at least AED 6,000 a month. Employers also may not pay Emirati employees less than colleagues in the same position.
Source: UAE Government portal (u.ae). We check this page every week. Last checked .
A UAE employment contract is the agreement under which a worker works under an employer's supervision for a wage, drawn up on the standard forms set by the Executive Regulations of the Labour Law (Cabinet Resolution No. 1 of 2022). The contract is made in two copies, one for each party, and must specify the start date, type of work, workplace, terms, duration and salary. It is based on the offer letter both parties signed and is submitted to MoHRE within 14 days of the employee's arrival in the UAE or change of status. Federal Decree-Law No. 33 of 2021 abolished unlimited contracts, so every contract is for a fixed term that can be extended or renewed, and the renewed term counts as continuous service. The contract also sets the work pattern (full-time, part-time, temporary or flexible), any probation period, any non-compete clause, and the notice period. Statutory minimums for hours, overtime and leave apply whatever the contract says. These rules cover the mainland and most free zones; the DIFC and ADGM set their own.
What must a UAE employment contract contain?
It must be in writing on the MoHRE-approved forms and specify the start date, type of work, workplace, terms and conditions, duration and salary. It is based on the signed offer letter and is submitted to MoHRE within 14 days of the employee's arrival in the UAE, or of the change of status for someone already in the country.
Job offers, contracts and annexes are usually in Arabic and English, and since 2016 a worker can ask for a third language from nine options, including Hindi, Malayalam, Tamil and Urdu. A worker can prove the contract and their wage by any means, so an unwritten arrangement does not shield the employer.
Is there a maximum length for a fixed-term contract?
All contracts must be fixed-term, and they can be extended or renewed by agreement for a similar or shorter period, any number of times. The 2021 law originally capped each term at 3 years, and official government guidance does not currently agree on whether that cap still applies, so check before agreeing a term longer than 3 years.
If the contract expires and both parties carry on performing it without a written renewal, it is treated as renewed on the same terms. Extensions and renewals are added together when calculating continuous service for end-of-service benefits.
What work models can a UAE contract use?
The Labour Law recognises full-time work for one employer, part-time work for one or more employers for set hours or days, temporary work for a set period or task, and flexible work whose hours or days change with the employer's needs. MoHRE guidance also lists remote work and job sharing, which follows the part-time rules.
The contract must state the agreed pattern. A part-time or other non-full-time worker cannot be required to work more than the hours in their contract without written consent, and part-time annual leave and end-of-service benefits are pro-rated to contracted hours.
How long can probation last, and what notice applies?
Up to 6 months from the start of work, and only once with the same employer. An employer ending employment during probation must give at least 14 days' written notice. An employee moving to another UAE employer during probation must give at least one month's written notice, and one leaving the UAE must give at least 14 days.
When an employee moves to a new UAE employer during probation, the new employer compensates the original employer for recruitment costs unless agreed otherwise. A party that ignores these rules owes the other compensation equal to the wage for the notice period or the part not served. An expatriate who resigns in probation without the employer's breach can be barred from a new work permit for one year. Once probation is passed, it counts towards length of service.
Are non-compete clauses enforceable in the UAE?
Yes, within limits. Under Article 10 an employer may restrict a worker who had access to clients or business secrets from competing after the contract ends, but only as far as needed to protect legitimate business interests, defined by time, place and type of work, and for no more than 2 years from the end of the contract.
The restriction is void if the employer terminated the contract in breach of the law, and an employer's claim for breach is not heard if more than one year has passed since the breach was discovered. The Executive Regulations can exclude some skill levels or occupations.
What are the statutory hours, overtime and leave rules?
Normal working hours are at most 8 a day or 48 a week, with a break of at least one hour after 5 consecutive hours. Overtime is limited to 2 extra hours a day and paid at the basic hourly rate plus 25%, or plus 50% between 10 pm and 4 am. Annual leave is 30 days after one year's service, and 2 days a month between 6 and 12 months.
Work on a rest day earns a substitute rest day or pay at the basic rate plus 50%. Paid sick leave starts after probation: up to 90 days a year, the first 15 on full pay, the next 30 on half pay and the remaining 45 unpaid. The employee must notify the employer within 3 days, and an employer may not dismiss or give notice to an employee while they are on sick leave.
Key figures
| Detail | Value |
|---|---|
| Written contract on approved forms, Article 8 | The employer must conclude an employment contract with the worker according to the agreed work pattern, in two copies (one for each party), on the forms specified by the Implementing Regulation. The contract must state start date, type of work, workplace, terms, duration and salary, be based on the signed offer letter, and be submitted to MoHRE within 14 days of the employee's arrival in the UAE or change of status. (source) |
| Fixed-term contracts and renewal | A worker can be hired on a fixed-term contract, which may be extended or renewed for a similar or shorter duration; if the parties keep performing it after expiry it is treated as renewed on the same terms, and renewals count towards end-of-service benefits. The law abolished unlimited contracts. (source) |
| Work patterns, Article 7 | Full time (one employer, full daily hours on all working days); part time (one or more employers for a specified number of hours or days); temporary (a specific period or task, ending on completion); flexible (hours or days change with workload and the employer's operational needs); and any other pattern set by the Implementing Regulation. MoHRE guidance also lists remote work and job sharing. (source) |
| Probation, Article 9 | Not more than 6 months from the start of work, and not more than once with the same employer. Employer termination during probation: at least 14 days' written notice. Employee moving to another UAE employer: at least one month's written notice, with the new employer compensating recruitment costs unless agreed otherwise. Foreign employee leaving the UAE: at least 14 days' written notice. A party that breaches these rules pays the other the wage for the notice period or its remainder. (source) |
| Non-compete, Article 10 | Permitted only where the worker's role gives knowledge of clients or access to business secrets, limited in time, place and type of work to what is necessary to protect legitimate business interests, and for no more than 2 years from the expiry of the contract. Void if the employer terminates the contract in breach of the law. (source) |
| Working hours and overtime, Articles 17 and 19 | Normal hours: 8 a day or 48 a week, with breaks of at least one hour after 5 consecutive hours. Overtime: no more than 2 extra hours a day, paid at the normal hourly rate (based on basic salary) plus 25%, or plus 50% between 10 pm and 4 am (not for shift workers). Work on a rest day: a substitute rest day or basic pay plus 50%. (source) |
| Annual leave, Article 29 | 30 days' fully paid annual leave after one year of service; 2 days for each month of service where service is more than 6 months but less than one year. Unused leave on leaving is paid on basic salary. Part-time employees accrue leave by actual working hours. (source) |
| Sick leave, Article 31 | After completing probation, up to 90 days a year, continuous or intermittent: full pay for the first 15 days, half pay for the next 30 days, no pay for the remaining 45 days. No paid sick leave during probation. The employee must notify the employer within 3 days with a medical report. The employer may not dismiss or give notice during sick leave. (source) |
| Emirati minimum wage | MoHRE has set the minimum monthly wage for Emiratis working in the private sector at AED 6,000, effective 1 January 2026. (source) |
Frequently asked questions
Can I still offer an unlimited contract in the UAE?
No. Federal Decree-Law No. 33 of 2021 abolished unlimited contracts for the private sector, and existing unlimited contracts had to be converted to fixed-term contracts. A fixed-term contract can be renewed by agreement as many times as the parties want.
Can I extend probation beyond 6 months?
No. Probation cannot exceed 6 months from the start of work, and an employee cannot be put on probation more than once with the same employer.
Do I have to pay sick leave during probation?
No. Paid sick leave starts once probation is complete. The employer may grant unpaid sick leave during probation based on a medical report.
Is overtime calculated on basic salary or total pay?
On basic salary. Overtime is paid at the normal hourly rate based on basic salary plus 25%, or plus 50% between 10 pm and 4 am, with no more than 2 extra hours in a day.
Each of the six Gulf states writes its own labour law, its own end-of-service rules and its own quota for hiring citizens. When Teamed is your legal employer, we apply the right rules for the country each person works in and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
