Labour Contract UAE: In the UAE, a labour contract is more than a document; it’s a legally binding agreement between the employer and the employee, governed by MOHRE (Ministry of Human Resources and Emiratization). As of 2025, the government is stricter than ever about ensuring all private sector workers are hired under MOHRE-approved labour contracts.
Labour Contract UAE What Employers Must Include in 2025
Labour Contract UAE: Failure to meet the required format or content can lead to
Rejection of visa applications
MORE penalties
Employee disputes or labor court cases
Delays in onboarding or renewals
That’s why understanding the labour contract UAE format is essential for all companies operating legally.
Key Components of a Valid Labour Contract in UAE
Labour Contract UAE: Whether you’re hiring a cleaner, a construction worker, or a driver, here are the mandatory fields your contract must include:
Job Title and Job Description
Clearly define the role. Don’t use vague terms like “worker”; instead, use specific titles like “light vehicle driver” or “housekeeping staff”.
Monthly Salary and Payment Method
State:
Basic salary
Allowances (accommodation, transport, etc.)
Whether salary is paid through WPS (Wage Protection System)
All salaries must be paid through WPS if the company is registered with MOHRE.
Working Hours and Overtime Policy
Standard: 8 hours/day or 48 hours/week
Overtime pay: 125% on regular days, 150% on holidays
Failure to honour overtime laws may lead to fines or court action.
Contract Type
Choose:
Limited (fixed term, usually 2 years)
Unlimited (flexible end date)
As a result of recent labour law reforms, most new contracts are limited.
Leave Entitlements
Include details about:
Annual leave (30 days after 1 year of service)
Sick leave
Public holidays
Maternity or emergency leave (if applicable)
Notice Period and Termination Clause
Clearly state:
Notice period (usually 30 days)
Termination process
End-of-service benefits based on UAE labor law
Health Insurance and Medical Coverage
Employers must provide basic health insurance to all workers.
Common Labour Contract Mistakes to Avoid
Leaving salary fields blank or vague
Using contracts not in Arabic or English (MOHRE only accepts bilingual templates)
Signing outdated contract templates
Failing to upload the signed contract to MOHRE online portal
Mahad HRC ensures all contracts meet the latest UAE labour law and are digitally submitted via official portals.
How Mahad HRC Helps Employers Stay Compliant
Labour Contract UAE: We manage labour contract creation for clients across Abu Dhabi, Dubai, and Sharjah. Our services include:
Drafting bilingual (Arabic-English) contracts
Ensuring compliance with 2025 MOHRE updates
Uploading documents to MOHRE system
Training employers on leave, WPS, and dispute clauses
Managing renewals and contract terminations legally
Labour Contract UAE—Who Needs It?
Labour Contract UAE: The following sectors must issue labour contracts for each employee:
Construction & engineering
Cleaning & facility services
Hospitality & catering
Delivery & logistics
Domestic and blue-collar roles
Even part-time workers and freelancers require legal agreements under UAE law.
Need Help Creating or Auditing Your Contracts?
Labour Contract UAE: Don’t risk fines or delays. Partner with Mahad HRC today for:
Legal contract templates
PRO submission to MOHRE
Full manpower supply with contract handling included
www.MahadHRC.ae
Final Thoughts
Labour Contract UAE: If your labour contract in the UAE isn’t clear, complete, and compliant, you may face serious consequences in 2025. Avoid the stress by working with a licensed recruitment and HR consultancy like Mahad HRC.
Protect your business. Empower your workers. Hire legally.