The Free Employment Contract is a standardized yet customizable employment agreement designed for use in the United Arab Emirates, complying with Federal Decree-Law No. 33 of 2021 and related employment regulations. This contract type is suitable for both limited and unlimited term employment relationships and can be used across various industries and position levels. It includes mandatory provisions required by UAE labor law while allowing flexibility to add specific terms based on the employer's requirements and industry standards. The document must be registered with the Ministry of Human Resources and Emiratisation (MOHRE) or relevant Free Zone authority, and it serves as the primary reference for all aspects of the employment relationship, from commencement to termination.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract, including defined terms from UAE labor law
4. Position and Duties: Job title, role description, responsibilities, and reporting relationships
5. Term and Hours of Work: Contract duration (limited or unlimited term), working hours, days, and overtime provisions as per UAE law
6. Probation Period: Length of probation period (maximum 6 months under UAE law) and conditions
7. Remuneration and Benefits: Base salary, allowances, benefits, and payment schedule in compliance with WPS
8. Annual Leave and Public Holidays: Leave entitlements, public holidays, and procedures for requesting leave
9. Sick Leave: Sick leave entitlements and notification procedures as per UAE law
10. Termination: Notice periods, grounds for termination, and procedures in accordance with UAE labor law
11. End of Service Benefits: Calculation and payment of gratuity and other end of service entitlements
12. Confidentiality: Protection of employer's confidential information and trade secrets
13. Governing Law and Jurisdiction: Confirmation of UAE law application and dispute resolution procedures
1. Non-Compete and Non-Solicitation: Restrictions on post-employment activities, typically used for senior positions or roles with access to sensitive information
2. Intellectual Property Rights: Ownership of IP created during employment, relevant for technical or creative roles
3. Commission Structure: Detailed commission calculations and terms, applicable for sales roles
4. Remote Work Provisions: Terms and conditions for remote working arrangements, if applicable
5. International Travel: Terms related to business travel and international assignments
6. Training and Development: Professional development obligations and training bond terms
7. Company Property: Provisions regarding use and return of company equipment and resources
8. Performance Reviews: Structure and frequency of performance evaluations and their impact on compensation
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 - Benefits Summary: Detailed description of all benefits and eligibility criteria
6. Appendix B - Bonus Scheme: Details of any applicable bonus or incentive schemes
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