Labour Contract UAE 2025: A labour contract in UAE 2025 is a legally binding agreement between an employer and an employee, governed by the UAE Labour Law (Federal Decree-Law No. 33 of 2021). It outlines key terms of employment, salary, benefits, termination clauses, and responsibilities of both parties.
For employers, getting the labour contract right means
Legal protection during disputes
Easier visa and Emirates ID processing
Faster onboarding of new hires
Avoiding fines during MOHRE inspections
In 2025, the Ministry of Human Resources and Emiratisation (MOHRE) tightened contract regulations, making accurate documentation a top priority.
Labour Contract UAE 2025—What Employers Must Include This Year
Key Elements to Include in a Labour Contract UAE 2025
Labour Contract UAE 2025:
1. Employee & Employer Information
Full names (as per passport)
Emirates ID (if inside UAE)
Company trade license and establishment card number
Employee nationality, passport number, and visa type
2. Job Title and Work Location
Official designation (e.g., “Cleaner,” “Sales Manager”)
Job function summary
Work location (Emirate + branch name)
Travel requirements (if any)
3. Contract Duration
From February 2022, all contracts in UAE must be limited-term (maximum of 3 years). Employers must mention
Start date
End date (if applicable)
Conditions for renewal
Unlimited-term contracts are no longer allowed in UAE.
4. Salary and Allowances
Clearly break down the total compensation package.
| Component | Mandatory |
|---|---|
| Basic Salary | ✅ |
| Housing Allowance | Optional |
| Transportation | Optional |
| Food or Meal Allowance | Optional |
| Overtime | As per labor law |
| Total Gross Salary | ✅ |
Mention currency (usually AED), payment method (WPS), and payment frequency (monthly).
5. Working Hours and Rest Days
As per UAE labor law:
Max working hours: 8 hours/day or 48 hours/week
1 hour daily rest for continuous 6-hour shifts
Minimum 1 rest day/week
Friday or Sunday off (as per industry norms)
Include working shift details, especially for hotel, cleaning, or domestic sectors.
6. Leave & Holidays
Employers must state:
30 days of paid annual leave after 1 year of service
90 days maternity leave (as updated)
5 days paternity leave
Official UAE public holidays (as per government calendar)
Sick leave conditions (after probation)
7. End of Service Benefits
As per UAE law, employees are entitled to
Gratuity (21 days basic pay per year for the first 5 years)
30 days’ basic salary per year after 5 years
Final settlement within 14 days after contract end
Make sure this clause is clear to avoid disputes.
8. Termination & Notice Period
Mention:
Notice period (usually 30 days)
Termination for cause conditions
Employee resignation rights
Compensation for early termination
Exit procedures and visa cancellation steps
Include any probation period terms (maximum 6 months as per law).
MOHRE Labour Contract Format (Digital)
Labour Contract UAE 2025: All contracts are now submitted online via
MOHRE Portal: https://www.mohre.gov.ae
Tasheel Centers
Authorized PRO services (like Mahad HRC)
Once approved:
The employee signs digitally
A copy is sent to both parties
It is automatically linked to the work permit and Emirates ID
Supporting Documents Required
| Document | Purpose |
|---|---|
| Passport Copy | Visa application |
| Emirates ID (if available) | Digital signature |
| Photo (passport-size) | Contract and visa |
| Offer Letter (if issued earlier) | keeping |
| Academic or trade certificates | For skilled jobs |
| Medical Fitness Report | Legal employment process |
Employer Best Practices for Labour Contracts
| Tip | Why It Matters |
|---|---|
| Use both English and employee’s language | MOHRE requires dual-language for low-skilled workers |
| Avoid signing before visa issuance | Risk of violation |
| Always update contract upon promotion | Protects both sides legally |
| Keep a signed copy with HR | For audits and complaints |
| Clearly define deductions or penalties | Transparency avoids disputes |
Common Mistakes to Avoid
| Mistake | Risk |
|---|---|
| Vague job descriptions | Future disputes |
| No mention of working hours | MOHRE fines |
| Issuing verbal agreements | Not enforceable |
| Paying outside WPS | Legal violation |
| Using outdated templates | Contract may be rejected |
Mahad HRC Support for Employers
Labour Contract UAE 2025: Our team helps you:
Draft and translate labour contracts
Submit documents via MOHRE or Tasheel
Manage contract renewals or cancellations
Ensure contract terms follow UAE Law 2025 updates
Handle inspections or employee complaints
Store contract data securely for HR audits
Let Mahad HRC streamline your labour contract UAE 2025 process end-to-end.
Final Words
“A contract isn’t just paperwork. It’s your legal backbone in UAE HR compliance.”
Labour Contract UAE 2025: In 2025, getting your labour contract UAE right ensures smooth hiring, fair workplace relations, and protection from legal disputes. Let Mahad HRC handle it accurately and professionally.