Explained: 6 job models in UAE private sector - MOHRE highlights full-time, remote and flexible work

The Ministry of Human Resources and Emiratization (MoHRE) has confirmed that six work models are available in the private sector. It explained that an employment contract is a mutual agreement between employer and employee, where the employee agrees to perform tasks under the employer’s supervision in exchange for a wage.

These contracts follow templates defined by the Executive Regulations of Federal Decree-Law No. (33) of 2021 on Labour Relations and its amendments.

The Ministry outlined the six work models as follows:

1. Full-time work: Employment with a single employer for the full daily working hours across the official working days.

2. Part-time work: Employment with one or more employers for a specified number of hours or working days.

3. Temporary work: Work required for a specific period or project, concluding upon completion.

4. Flexible work: Work with variable hours or days, depending on workload and the employer’s operational and economic conditions. Employees may work at varying times based on business needs.

5. Remote work: Work performed entirely or partially outside the employer’s premises, with electronic communication replacing physical presence. This can be done on a full-time or part-time basis.

6. Job sharing: Division of tasks and responsibilities between two or more employees who share a job, with compensation distributed proportionally. These employees are treated under part-time work regulations.

The Ministry stressed that employers must comply with the following requirements:

• Use the approved contract template that matches the offer letter when applying for a work permit. Employers may add additional benefits or appendices to the contract, provided they do not conflict with the provisions of the Decree-Law or its Executive Regulations.

• Retain both digital and physical copies of the employment contract and offer letter for at least two years following the termination or expiration of the employment relationship.

• Inform employees of their rights and obligations as stipulated in the employment contract.

Adoption of fixed-term contracts

According to Federal Decree-Law No. (33) of 2021 on the Regulation of Labour Relations and its amendments—also known as the UAE Labour Law, effective February 2, 2022—all employment contracts must be for a fixed term. Employers and employees may agree to renew or extend such contracts for the same or a shorter duration, once or multiple times.

As per the latest update on the Ministry’s official website, if both parties continue to execute the contract after the original term expires without an explicit renewal agreement, the original contract is deemed extended under the same terms. Any extension or renewal is considered an addition to the original term and counts towards the employee’s continuous service period.

All indefinite-term contracts must be converted into fixed-term contracts within one year from the effective date of the new Labour Law, in accordance with its conditions, requirements, and procedures. The Cabinet may extend this period if deemed necessary in the public interest.

The provisions of the Decree-Law also apply to indefinite-term contracts executed under the former Federal Law No. (8) of 1980.

Probation period in the employment contract

Employers may place employees on a probation period not exceeding six (6) months from the commencement of employment. An employee may not be placed on probation more than once by the same employer.

• If the employee successfully completes the probation period and continues working, it will be counted as part of the total service period.

• If the employer wishes to terminate the employee during the probation period, a written notice must be given at least 14 days prior to the termination date.

• If the employee wishes to transfer to another employer in the UAE during the probation period, they must notify the current employer in writing at least 30 days in advance. The new employer is then required to compensate the current employer for recruitment or contracting costs—unless agreed otherwise.

• If the employee wishes to terminate the contract during probation to leave the UAE, they must notify the employer in writing at least 14 days before the termination date.

Should the employee return to the UAE and obtain a new work permit within three (3) months of their departure, the new employer is obliged to compensate the former employer—unless otherwise agreed between the parties.

Non-Compete clause in employment contracts

Article (10) of the UAE Labour Law allows employers to include a non-compete clause in employment contracts. Accordingly, an employer may require that the employee, after the end of the contract, does not compete with the employer or participate in any competing project within the same sector.

The clause must be limited in duration, geographical scope, and type of work, and must be reasonable and necessary to protect the legitimate interests of the employer. In any case, the duration of the non-compete restriction must not exceed two years from the date of contract termination.