Skip to main content

Ask a Lawyer·Labour / Employment

Labour / EmploymentAnswered

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 by LEXAI. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

1 answers

Best answer
L
LEXAI

AI-generated answer

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.
Helpful (0)

Facing something similar?

Describe your own situation below. Your details go to our team, and a suitable lawyer in the LEXAI directory may receive them so they can contact you about it.

Pick your situation so your enquiry can reach a suitable lawyer in the LEXAI directory who works in that area.

Your details stay private and are used only to handle your enquiry. Your enquiry may be offered to a suitable lawyer automatically, and may be offered to another if there is no response, so a lawyer can contact you about it. Privacy policy

Related Questions

Underlying law

Keep reading

Labour Employment

DEWS in the DIFC: How the Employee Workplace Savings Plan Works

Your DIFC employer must pay at least 5.83% of your monthly basic wage into DEWS or another certified scheme every month, rising to 8.33% after five years. Who is covered, how the 50% floor works, what UAE and GCC nationals are owed, and how to get the money out.

5 min read

Labour Employment

Non-Renewal of an Employment Contract in the UAE: Notice, Sample Letter and Final Dues

UAE labour law sets no separate notice period for letting a fixed-term contract expire, but silence can extend it on the same terms. What a non-renewal letter should say, two neutral sample letters, what is owed within 14 days, and the visa steps.

5 min read

Labour Employment

Basic Salary in the UAE: What Counts, the Percentage Question, and Which Entitlements Use It

Basic salary is the contract wage before housing, transport and other allowances. UAE law sets no minimum ratio to your total package, yet overtime, gratuity, holiday premiums and unemployment insurance all run on it. Here is what counts, what does not, and how to check your own figure.

5 min read