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Are UAE employment contracts fixed-term or unlimited now?

Asked by Anonymous·Jun 26, 2026·1 answers
A worker renewing a contract has heard that the old 'unlimited' contracts no longer exist in the UAE.

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 26, 2026
In the UAE private sector, the Labour Law (Federal Decree-Law No. 33 of 2021) moved the system to fixed-term (limited-term) employment contracts, replacing the older 'unlimited' contract model that existed under the previous law. Existing unlimited contracts were required to be transitioned to the fixed-term format within a period set by the authorities, so most private-sector employees regulated by MOHRE should now be on a defined-term contract that can be renewed. A fixed-term contract states a clear duration and renews by agreement rather than running indefinitely. This change affects how termination, notice, and end-of-service entitlements are framed, so it matters to know which type you hold. Check your current registered MOHRE contract to confirm it reflects the fixed-term format and shows a defined period. If you are still holding an old unlimited contract that was never converted, raise it with HR, since your records should match the current legal structure. For the exact transition rules and how your entitlements carry across, confirm with MOHRE, and you can compare verified UAE legal professionals on LEXAI if your contract status is unclear.
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