A Practical Guide to Labour & Employment Contract Drafting & Advisory
Every UAE employment relationship now runs on the fixed-term contract model under Federal Decree-Law No. 33 of 2021, registered with MOHRE (or the applicable free zone, DIFC, or ADGM authority) as the single source of truth for notice periods, probation terms, end-of-service entitlement, and termination grounds. A contract that is generic, copied from an outdated template, or inconsistent with what is actually paid through WPS is not a paperwork issue — it is a live liability that surfaces at exactly the wrong moment, whether that is a resignation, a termination, or a MOHRE complaint.
What You're Really Buying
Labour and employment contract drafting and advisory is the engagement through which PNPC prepares, reviews, and advises on the legal documents that govern the employment relationship between a UAE employer and its workforce — the MOHRE-format standard employment contract for mainland and most free zone employees, offer letters, probation and confirmation terms, non-compete and confidentiality clauses within the limits UAE law allows, and termination or settlement documentation. The governing framework is Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) and its Executive Regulations under Cabinet Resolution No.
For the full scope, current process and what PNPC includes, see the dedicated Labour & Employment Contract Drafting & Advisory service page.
Signs This Applies to You
- You are hiring your first UAE employee and need a MOHRE-compliant, fixed-term employment contract drafted correctly from day one, aligned with the WPS salary structure and payroll setup
- Your company is still using employment contract templates that predate Federal Decree-Law No.
- You need to convert legacy unlimited-term contracts to the current fixed-term model for existing employees, and want the conversion documented correctly without disrupting continuity of service for gratuity purposes
- You are hiring a senior executive, technical specialist, or commercially sensitive role and need confidentiality, IP assignment, and a properly limited, enforceable non-compete clause drafted to UAE legal standards
What This Doesn't Cover
- You need full monthly payroll processing including salary calculation, payslip generation, and WPS file submission — that is the core payroll processing engagement, which typically runs alongside contract drafting rather than replacing it
- You need leave, attendance, or end-of-service gratuity actually computed for an employee — that is the leave, attendance and gratuity computation engagement, which relies on the contract terms this service produces but is a distinct calculation exercise
- Your dispute has already progressed to active Labour Court or DIFC/ADGM Courts litigation and you need courtroom representation — PNPC drafts and reviews the underlying contract and can prepare supporting documentation, but litigation conduct itself sits with your UAE legal counsel
Common Questions
Is the fixed-term (limited) contract now mandatory for all UAE private-sector employees?
Yes, since the framework introduced under Federal Decree-Law No. 33 of 2021 took effect, fixed-term contracts are the mandatory model for private-sector employment in the UAE, replacing the previously common unlimited-term contract. Employers with legacy unlimited-term contracts still in force generally needed to convert them to the fixed-term model, and any new hire since the law's effective date should be on a fixed-term contract from the outset.
What must a MOHRE-compliant employment contract include?
At minimum, the contract must capture job title, basic wage and allowance breakdown, probation period, applicable notice period, working hours, the fixed contract term and its renewal or continuation mechanics, and the governing employment relationship terms consistent with what is registered on MOHRE's system. The specific structure follows MOHRE's standard contract format, with additional clauses layered around this statutory core.
Is a non-compete clause enforceable under UAE law?
A non-compete restriction can be enforceable, but only where it is limited in duration, geography, and the type of work restricted, to what is genuinely necessary to protect the employer's legitimate business interests, under Article 10 of Decree-Law No. 33 of 2021. A clause that is unreasonably broad in any of those dimensions is vulnerable to being struck down or narrowed by a court rather than upheld as drafted.
Where PNPC Fits In
Talk to PNPC before your next offer letter goes out — contracts drafted to survive a MOHRE review or a Labour Court challenge, not just to fill in a template.
PNPC Global has advised Dubai businesses since 1986. Explore the full Accounting, Payroll, CFO & E-Invoicing practice for related services, or go straight to the Labour & Employment Contract Drafting & Advisory page for specifics.
Rates, thresholds and filing dates are set by the relevant authority and revised periodically. Treat anything numeric here as "ask PNPC for the current figure," not as a quoted fact.