Explained: What is UAE's latest job contract update and How will it benefit Indians?The UAE has removed the limits on the duration of job contracts and aims to make the country a more balanced environment for both employers and employees Author : Sukhdev Singh
Ministry of Human Resources and Emiratisation of the United Arab Emirates has recently updated its regulation on employment relationships in an attempt to look ahead and provide greater flexibility.
Under this, The UAE has removed the limits on the duration of job contracts and aims to make the country a "more balanced environment for both employers and employees."
But what does this mean to Lakhs of immigrants to The UAE and how will impact the working culture in the country?
Change in Fixed-Term Contracts:
With the new labor law in force, indefinite contracts will be changed to fixed-term agreements. Previously a worker could be hired on a fixed-term contract for a maximum period of three years but with this law, the prevailing norms will be lifted.
What will be the new duration for which the company can issue contracts?
As the new amendment says, all employment contracts must cover a definite term, implying that no limit has been set for the term period, and the contract can be renewed after the initial term suspends.
How will the change benefit Indians?
Under the previous existing norms, the employment contracts were in sync with the visa status of an employee due to which the contracts remained limited to two-three years of validity. But, with the new law, the contract will have a much longer duration.
Will the change promote flexible work models?
The employees will now have an opportunity to avail of flexible, temporary, or part-time contracts when they be applying for the jobs and also for more than one job model.