Employment Contract, HR Policy, MOHRE Compliance, UAE Labour Law

UAE Employment Contracts in 2026: What Must Be Included (Checklist for Employers)

Freewoman October 21, 2026 0 comments
Need HR support for your business?
Outsourced HR from AED 4,500/month — payroll, compliance, Emiratisation and more.
See Packages

Short answer: every private-sector employment contract in the UAE must be in writing, fixed-term, registered with MOHRE, and include at least the employer and employee details, job title, start date, workplace, working hours, wage (with the basic salary stated separately), probation, and notice period. Unlimited contracts were abolished on the mainland in 2022.

The contract is the first thing MOHRE or a court reads in any dispute. If it's vague, the law fills the gaps, usually in the employee's favour. Here's what to check in yours.

The must-have clauses

ClauseWhy it matters
Employer name, address, licenceMust match the trade licence exactly
Employee name, nationality, date of birth, IDMust match the passport and visa
Job title and dutiesMust match the MOHRE classification
Start date and contract termAll mainland contracts are fixed-term
WorkplaceMatters for transfers and remote work
Working hours and rest daysBasis for overtime claims
Basic salary and allowancesGratuity, leave pay and overtime are calculated on basic
ProbationMaximum 6 months, can't be extended
Notice periodBetween 30 and 90 days

Fixed-term, but no maximum length

The old three-year cap was removed in 2022, so you can agree any term. Two or three years is common because it lines up with visa renewals. If both sides carry on working after the end date without signing a renewal, the contract continues on the same terms. Renew it properly anyway, because MOHRE records should match reality.

Basic salary: get the split right

Gratuity, leave encashment and overtime are worked out on the basic wage. A contract that puts 30% in basic and 70% in allowances lowers those costs, but it also draws attention if the split looks artificial. Pick a structure you can explain and use it consistently across the team.

Non-compete clauses

Allowed, but limited. The restriction can't run for more than two years after the job ends, and it has to be reasonable in the type of work and the geographic area it covers. "No work in the GCC for five years" won't be enforced.

Offer letter versus contract

MOHRE issues the offer letter and the contract in a standard format, and the employee signs both. You can add a separate addendum with company-specific terms such as confidentiality, IP, or bonus rules, as long as nothing in it gives the employee less than the law does. If the offer letter and the contract don't match, expect the employee to rely on whichever helps them more.

Want your contract checked?

Send us your current template and we'll mark up anything missing, out of date or unenforceable.

Ask us on WhatsApp →

The UAE HR Master Pack includes an employment contract addendum, offer letter and probation review templates written for the current law. And if you want your own team to own this, the UAE HR Coordinator Certificate covers contracts and MOHRE processes step by step. It's self-paced, with live support included.

Quick answers

Are unlimited contracts still allowed in the UAE?
No. On the UAE mainland all private-sector employment contracts are fixed-term. The DIFC and ADGM have their own rules.

Is there a maximum length for a UAE fixed-term contract?
No. The previous three-year cap was removed in 2022, so the parties can agree any term.

How long can probation be in the UAE?
Up to six months, and it cannot be extended.

Are non-compete clauses enforceable in the UAE?
Yes, if limited to no more than two years after employment ends and reasonable in scope and location.

This guide is general information based on Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022, as amended. It is not legal advice. The DIFC and ADGM have their own employment laws.

N
Nia Chase
Nia Chase is a Harvard-listed HR author and UAE Labour Law specialist. Founder of The Evolved HR. See HR outsourcing packages →
Need personalised HR guidance?
Book a consultation with Nia Chase — expert UAE HR advice for your situation.
Book Consult

Comments (0)

Comments (0)