UAE Labour Contract Basics (2026): Fixed-Term Contracts, Probation, Notice and Your Rights

A UAE labour contract for private-sector staff is governed by Federal Decree-Law No. 33 of 2021 on the regulation of employment relationships. The rules cover how long a contract can run, how probation works, how much notice each side must give and what protections a worker has. This guide summarises what the official UAE Government portal says on these points, in plain language.

Which law applies

The private-sector rules sit in Federal Decree-Law No. 33 of 2021, which the UAE Government portal calls the UAE Labour Law. It applies to private-sector employment. Domestic workers are covered by a separate law, so this guide does not apply to them. If you are checking the permit side of a job, see our MOHRE work permit guide.

Fixed-term contracts

Under the law, a worker can be hired on a fixed-term contract, according to the UAE Government portal:

• A fixed-term contract can be extended or renewed for a similar or shorter duration.
• If a contract expires without renewal and both sides keep performing it, it is treated as renewed on the original terms.
• Extensions and renewals count towards end-of-service benefit calculations.
• Unlimited contracts must be converted to fixed-term contracts within one year of the existing contract's effective date, although the Cabinet may extend that period in the public interest.

Work arrangement models

The portal lists six models: full time, part time, temporary, flexible, remote and job sharing. Job-sharing contracts follow the part-time rules.

Probation

• Probation must not exceed six months and cannot be extended for another term.
• If the employee continues after probation, the probation period counts as service.
• If the employer ends the contract during probation, it must give 14 days' prior written notice.
• If the employee moves to another job within the UAE during probation, they must give at least one month's written notice, and the new employer compensates the old employer's recruitment costs unless otherwise agreed.
• If the employee leaves the job and the UAE during probation, they must give 14 days' prior written notice.

Non-compete clauses

A non-compete restriction is allowed only if it is limited to what is necessary to protect the employer's legitimate interests and is defined by time, place and nature of work. The maximum period is two years from the end of the contract.

The job offer and your signed contract

The portal's worker-rights page says workers are expected to sign their employment contract after arriving in the UAE, and that the contract terms must match the job offer they signed in their home country. It advises workers to keep a copy of the signed job offer. If you are moving to the UAE with family, see our guide to the UAE family residence visa.

Notice period when ending a contract

Under Article 43, either party may end the contract for any legitimate reason by giving the other party written notice, according to the portal's termination page:

• The notice period must be not less than 30 days and not more than 90 days.
• The contract stays in effect during the notice period, and the worker is entitled to the full wage for it, based on the most recent salary.
• A party that fails to serve the required notice owes the other a notice-period allowance, even if no harm resulted.
• The notice period must be the same for both parties unless it favours the worker, and it can be reduced or waived by mutual agreement.
• If the employer terminates, the worker gets one unpaid day per week to look for a new job, and must give the employer at least 3 days' notice of the day chosen.

Ending a contract without notice

The law also allows termination without notice in specific cases:

• By the employer (Article 44): ten grounds are listed, including forged documents, substantial material loss, assault, and absence of more than 7 consecutive days or more than 20 non-consecutive days in a year. The employer must investigate in writing, and the dismissal notice must be in writing and justified.
• By the employee (Article 45): four grounds are listed, including the employer failing its obligations, harassment, assigning fundamentally different tasks without written consent, and failing to remove grave safety dangers. Some grounds require notifying MoHRE within set deadlines, for example 14 working days before quitting.

Arbitrary dismissal

Dismissing a worker for filing a valid serious complaint with MoHRE, or a lawsuit against the employer, is unlawful under Article 47. Compensation for arbitrary dismissal is capped at three months of wages, based on the last wage. The portal page does not explain how end-of-service gratuity is calculated, so use the official end-of-service benefits page for that.

Core worker protections

According to the portal's worker-rights page:

• Passports: the confiscation of workers' passports is prohibited, and workers do not need their employer's permission to leave the country.
• Recruitment fees: charging recruitment fees to prospective employees is illegal. The employer bears recruitment and travel costs, plus the cost of the residency permit.
• Wages: the government enforces a wage protection system so employees are paid in full and on time. Contact MoHRE promptly if you are not paid in full.
• Court costs: workers are exempt from litigation fees for claims under AED 100,000.
• Other: the law prohibits forced labour and discrimination, and bans employing children under 15.

What this guide does not cover

The official portal pages summarised here do not set out working hours, annual leave or the gratuity formula. Read Federal Decree-Law No. 33 of 2021 and its executive regulation for those. For a self-employed route instead of a contract, see our UAE freelance visa guide.

When a contract ends, your end-of-service pay depends on your basic salary and years of service. Our UAE gratuity calculator guide shows the formula and checked examples.

Official sources

• UAE Government portal: Employment contracts, duration and models
• UAE Government portal: Terminating employment contracts
• UAE Government portal: Protection of workers' rights
• MOHRE: Federal Decree-Law No. 33 of 2021