United Arab Emirates: Upcoming Deadline for Private Sector Employment Contracts to be Converted to Limited Term

Employers in the private sector must convert all employment contracts from unlimited term to limited term by February 1, 2023, to comply with a new labor law. Employers in the Abu Dhabi Global Market and Dubai International Financial free zones, as well as those employing domestic workers, are exempt from this requirement. The Cabinet of the United Arab Emirates will allow contracts of any duration, as long as they have been mutually agreed upon by the employer and employee. Employers are advised to review their employment contracts and amend where applicable to avoid fines or sanctions.