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UAE’s ministry of human resources and emiratisation recently updated its regulation on employment relationships with the aim of providing greater flexibility. UAE has removed limits on the duration of job contracts with the move making the country a “more balanced environment for both employers and employees”, Khaleej Times reported. Here’s everything you need to know about the new changes and how it will impact your work in UAE:
Read more: UAE’s new job exploration visa explained: Eligibility, fees, documents needed
How will fixed- term contracts change?
Owing to the new labour law in UAE, indefinite contracts will be changed to fixed-term agreements. Previously a worker could be hired on a fixed-term employment contract for up to three years but this cap will also be lifted, the new rules say.
Will companies be allowed to issue contracts for five or ten years?
The new amendment says that all employment contracts must cover a definite term which implies that no limit has been set for the term period. The contract, therefore, can be renewed.
How will the change benefit Indians?
Earlier, employment contracts used to be synchronised with the visa status of an employee owing to which contracts were limited to two and three-year validity of previous residence visas. But with the new update, contract could have a much longer duration than the visa status of the applicant.
Read more: UAE golden visa 6-month multiple-entry permit: Categories, fees, eligibility
Will the change promote flexible work models?
Employees will also have the opportunity to get flexible, temporary or part-time contracts when applying for jobs as well as combine more than one job model.
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