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ARTICLE · 12 FEBRUARY 2016

Limited Term Contracts In The UAE

Under Federal Law No. 8 of 1980 Regarding the Organisation of Labour Relations, as amended, employers may issue employees with either a limited term contract or an unlimited term contract.

United Arab EmiratesEmployment and HR

Under Federal Law No. 8 of 1980 Regarding the Organisation of Labour Relations, as amended (UAE Labour Law), employers may issue employees with either a limited term (also referred to as a fixed term) contract or an unlimited term contract.

By way of reminder, a limited term contract is for a finite period and has a prescribed termination date (although it may be renewed for further periods). An unlimited term contract is for an indefinite period and continues until such time as it is terminated in accordance with its terms or with the UAE Labour Law.

You will have no doubt seen the recent announcements regarding the new Ministerial Decrees and their impact on the way in which limited term contracts operate. Whilst the Ministerial Decrees (explained below) primarily only affect employers falling under the Ministry of Labour's (MoL) jurisdiction (not those governed under the jurisdiction of the Ministry of Education (MoE), for example), nevertheless, it is helpful

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