Employment Contracts – Conversion to Limited Term Contracts

On 2nd February 2022 the new UAE Labour Law was announced as in effect (UAE Federal Law No. 33 of 2021), replacing, and superseding the current law (UAE Federal Law No. 8 of 1980, as amended).

As per the new regulation, all employment contracts will need to be amended to a fixed duration of one (1), two (2), or three (3) years – unlimited contracts no longer apply. 

Companies have until 2nd February 2023 to complete the transition to limited term contracts.

For DMCC member companies, kindly note that conversion of contracts to a limited term will be free of charge until 30th January 2023- thereafter charges will be applicable as follows:

Application

DMCC Free Zone Fee

AHR Professional Fee

Update to Limited Term

Free of Charge
(Until 30th January 2023)

AED 250 + VAT

Update to Limited Term
with Salary Change

AED 225

AED 250 + VAT

Update to Limited Term
with Designation Change on EXISTING Passport

AED 569

AED 500 + VAT

Update to Limited Term
with Designation Change on a NEW Passport

AED 1,087

AED 1,000 + VAT

For mainland companies, or clients located in other free-zone jurisdictions please reach out to a member of our team to request a quote.

If you would like our assistance, kindly provide us with your list of employees by email, along with instructions on the changes to be made, so that our visa team can share a full list of documentation required.

E: visasupport@ahr-corporate.com 

Disclaimer: The material provided on this website does not constitute financial advice and is for information purposes only, the information provided is subject to change without notice.

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