14May

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  • Signing outdated contract templates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.

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