Under Federal Decree Law No. 33 of 2021 and its executive implementing regulations (“New Labour Law“) which entered into effect in February 2022, all employee unlimited term contracts required be converted to fixed term contracts. A grace period of up to 1 February 2023 was put in place for all contract conversions in the UAE. Failure to meet the deadline risked penalties being imposed.
However, the Ministry of Human Resources and Emiratisation (MOHRE) has recently announced an extension to the grace period for the conversion of contracts until 31 December 2023.
Notwithstanding the extension to the deadline we recommend that all employers continue their efforts to roll out contract conversions for all staff without delay.
To speak to us in relation to the New Labour Law, any employment law related matters, or issues more generally, please reach out to the Baker McKenzie contacts below.
