Overview of Work Models in the UAE Private Sector
The Ministry of Human Resources and Emiratization (MoHRE) has outlined six distinct work models that are available within the private sector in the United Arab Emirates. These models provide a structured framework for employment relationships, ensuring clarity and legal compliance for both employers and employees.
An employment contract is essentially a mutual agreement between an employer and an employee. The employee agrees to perform specific tasks under the supervision of the employer in exchange for a wage. These contracts must adhere to the templates defined by the Executive Regulations of Federal Decree-Law No. (33) of 2021 on Labour Relations and its amendments.
Types of Work Models
Here are the six work models recognized in the UAE:
Full-Time Work
This model involves employment with a single employer for the full daily working hours across the official working days. It typically includes standard working hours and benefits such as annual leave and health insurance.
Part-Time Work
Part-time employment allows for flexibility, where an individual may work with one or more employers for a specified number of hours or working days. This model offers greater freedom but may come with reduced benefits compared to full-time roles.
Temporary Work
Temporary work is required for a specific period or project and concludes upon completion. This model is ideal for short-term projects or seasonal demand.
Flexible Work
Flexible work arrangements allow for variable hours or days based on workload and the employer’s operational and economic conditions. Employees may work at varying times depending on business needs, offering a balance between work and personal life.
Remote Work
Remote work enables employees to perform their duties entirely or partially outside the employer’s premises, using electronic communication to replace physical presence. This model can be either full-time or part-time, providing significant flexibility for both employers and employees.
Job Sharing
Job sharing involves dividing tasks and responsibilities between two or more employees who share a job. Compensation is distributed proportionally among the employees, and they are treated under part-time work regulations.
Employer Responsibilities
Employers have several key responsibilities to ensure compliance with UAE labour laws:
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Use Approved Contract Templates: Employers must use the approved contract template that matches the offer letter when applying for a work permit. Additional benefits or appendices can be added, provided they do not conflict with the provisions of the Decree-Law or its Executive Regulations.
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Retain Records: Both digital and physical copies of the employment contract and offer letter must be retained for at least two years following the termination or expiration of the employment relationship.
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Inform Employees: Employers are required to inform employees of their rights and obligations as stipulated in the employment contract.
Fixed-Term Contracts
Under Federal Decree-Law No. (33) of 2021 on the Regulation of Labour Relations, all employment contracts must be for a fixed term. Employers and employees may agree to renew or extend such contracts for the same or a shorter duration, once or multiple times.
If both parties continue to execute the contract after the original term expires without an explicit renewal agreement, the original contract is deemed extended under the same terms. Any extension or renewal is considered an addition to the original term and counts towards the employee’s continuous service period.
All indefinite-term contracts must be converted into fixed-term contracts within one year from the effective date of the new Labour Law, in accordance with its conditions, requirements, and procedures. The Cabinet may extend this period if deemed necessary in the public interest.
Probation Period in Employment Contracts
Employers may place employees on a probation period not exceeding six (6) months from the commencement of employment. An employee may not be placed on probation more than once by the same employer.
If the employee successfully completes the probation period and continues working, it will be counted as part of the total service period. During this period, the employer must give a written notice at least 14 days prior to the termination date if they wish to terminate the employee.
Employees wishing to transfer to another employer during the probation period must notify the current employer in writing at least 30 days in advance. The new employer is then required to compensate the current employer for recruitment or contracting costs—unless agreed otherwise.
If the employee wishes to terminate the contract during probation to leave the UAE, they must notify the employer in writing at least 14 days before the termination date. Should the employee return to the UAE and obtain a new work permit within three (3) months of their departure, the new employer is obliged to compensate the former employer—unless otherwise agreed between the parties.
Non-Compete Clause in Employment Contracts
Article (10) of the UAE Labour Law allows employers to include a non-compete clause in employment contracts. This clause requires the employee, after the end of the contract, not to compete with the employer or participate in any competing project within the same sector.
The clause must be limited in duration, geographical scope, and type of work, and must be reasonable and necessary to protect the legitimate interests of the employer. In any case, the duration of the non-compete restriction must not exceed two years from the date of contract termination.
