Employer Employee Agreement

Employer Employee Agreement for United Arab Emirates

Employer Employee Agreement Template for United Arab Emirates

A comprehensive employment agreement governed by UAE Federal Labor Law, specifically Federal Decree-Law No. 33 of 2021, establishing the terms and conditions of employment between an employer and employee in the United Arab Emirates. This agreement outlines essential employment terms including position, compensation, benefits, working hours, leave entitlements, and termination provisions, while ensuring compliance with UAE labor regulations. The document incorporates mandatory requirements under UAE law such as probation periods, end of service benefits, and medical insurance provisions, while also allowing for additional terms specific to the employment relationship.

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What is a Employer Employee Agreement?

This Employer Employee Agreement is designed for use in the United Arab Emirates, complying with Federal Decree-Law No. 33 of 2021 and related employment regulations. It serves as the primary document establishing the employment relationship between companies and their employees in the UAE, whether for limited or unlimited term contracts. The agreement includes mandatory provisions required by UAE law, such as probation periods, working hours, leave entitlements, and end of service benefits, while allowing flexibility for role-specific terms and additional benefits. This document is essential for any employer operating in the UAE mainland and must be drafted in Arabic (with optional English translation) to be legally enforceable.

What sections should be included in a Employer Employee Agreement?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and agreement purpose

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, employment type (unlimited/limited term), and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities

6. Place of Work: Primary workplace location and any flexibility arrangements

7. Working Hours and Days: Standard working hours, days, and overtime provisions as per UAE law

8. Probation Period: Length and terms of the probation period (max 6 months under UAE law)

9. Remuneration and Benefits: Salary, allowances, and other benefits including payment frequency and method

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

11. Medical Insurance: Health insurance provisions as required by UAE law

12. Confidentiality: Protection of employer's confidential information and trade secrets

13. Termination: Grounds and procedures for contract termination, notice periods, and final settlement

14. End of Service Benefits: Calculation and payment of gratuity and other termination benefits

15. Governing Law: Confirmation of UAE law application and jurisdiction

What sections are optional to include in a Employer Employee Agreement?

1. Non-Competition: Restrictions on post-employment activities, used for senior positions or roles with access to sensitive information

2. Intellectual Property: IP ownership and assignment provisions, relevant for creative or technical roles

3. Remote Working: Specific provisions for remote work arrangements, if applicable

4. Commission Structure: Detailed commission terms for sales or commission-based roles

5. Training Requirements: Mandatory training and professional development obligations

6. International Travel: Terms for international travel and related allowances

7. Housing Allowance: Specific terms regarding housing benefits if provided

8. Education Allowance: Terms for education benefits for employee's children if provided

9. Stock Options/Equity: Terms of any share or option schemes offered to employee

What schedules should be included in a Employer Employee Agreement?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Code of Conduct: Expected standards of behavior and professional conduct

5. Appendix A - Confidential Information: Definition and examples of confidential information

6. Appendix B - Reporting Structure: Organizational chart showing reporting relationships

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

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Regular Employment Contract

UAE-compliant employment agreement establishing terms and conditions of employment under UAE Federal Decree-Law No. 33 of 2021.

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Download a Standard Employer Employee Agreement

Review your own Employer Employee Agreement

What is a Employer Employee Agreement?

What sections should be included in a Employer Employee Agreement?

What sections are optional to include in a Employer Employee Agreement?

What schedules should be included in a Employer Employee Agreement?

Authors

Alex Denne

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