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Simple Employment Contract for United Arab Emirates

Simple Employment Contract Template for United Arab Emirates

This document is a Simple Employment Contract designed for use in the United Arab Emirates, compliant with Federal Decree-Law No. 33 of 2021 (UAE Labor Law). It establishes the fundamental terms and conditions of employment between an employer and employee, including essential provisions for compensation, working hours, leave entitlements, and termination procedures. The contract incorporates mandatory requirements under UAE labor law while maintaining flexibility to accommodate various employment scenarios across different industries. It provides a clear framework for both parties to understand their rights, obligations, and responsibilities within the employment relationship.

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What is a Simple Employment Contract?

The Simple Employment Contract serves as a foundational document for establishing employment relationships in the United Arab Emirates. It is designed to comply with Federal Decree-Law No. 33 of 2021 and related ministerial resolutions, making it suitable for both mainland and free zone companies operating in the UAE. This contract type is typically used when hiring new employees or converting existing employment arrangements into formally documented agreements. It contains all essential elements required by UAE labor law, including probation periods, working hours, leave entitlements, and end-of-service benefits. The Simple Employment Contract is structured to be clear and comprehensive while remaining flexible enough to accommodate various employment scenarios across different sectors and job levels.

What sections should be included in a Simple Employment Contract?

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

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

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Term of Employment: Employment start date and duration (limited or unlimited term)

6. Probation Period: Length and terms of the probationary period as per UAE law

7. Compensation: Basic salary, allowances, and payment schedule

8. Working Hours and Location: Standard working hours, days, and primary work location

9. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions

10. Confidentiality: Protection of company confidential information

11. Termination: Notice periods and grounds for termination

12. End of Service Benefits: Calculation and payment of gratuity and final settlements

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

What sections are optional to include in a Simple Employment Contract?

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

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

3. Commission Structure: Details of commission calculations and payments, for sales roles

4. Remote Work Provisions: Terms for remote working arrangements, if applicable

5. International Assignment: Additional terms for expatriate employees

6. Training Obligations: Training requirements and associated commitments, especially relevant for technical roles

7. Company Car: Terms related to provision and use of company vehicles

8. Housing Allowance: Specific terms regarding housing benefits and conditions

What schedules should be included in a Simple Employment Contract?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and reporting lines

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

3. Schedule 3 - Company Policies: Reference to key company policies applicable to the employment

4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria

5. Appendix A - Code of Conduct: Employee behavioral expectations and ethical guidelines

6. Appendix B - Leave Policy: Detailed leave application and approval procedures

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

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use

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