In 2025, the UAE continues to be one of the most attractive destinations for expat professionals and laborers alike. With major changes introduced under the UAE Labour Law, understanding the latest UAE employment contract rules 2025 is essential for all job seekers and current employees. This comprehensive guide explains the key types of contracts, mandatory clauses, legal protections, and the updated rights and obligations for workers in the UAE.
UAE Employment Contract Rules 2025 – What Every Worker Should Know
Types of Employment Contracts in UAE
As per the UAE employment contract rules 2025, there is now a unified fixed-term contract system that replaced the previously used unlimited contracts.
1. Fixed-Term Contracts (Standard)
- Valid for a maximum of 3 years (renewable)
- Clearly states start/end dates, salary, job role
- Must comply with MOHRE-approved templates
2. Temporary/Project-Based Contracts
- Suitable for freelance, short-term, or project-based work
- Must define the scope and timeline clearly
Key Clauses Required in Every UAE Job Contract
According to UAE employment contract rules 2025, all legal job contracts in the UAE must include the following mandatory clauses:
- Full name and nationality of both employer and employee
- Job title and description
- Salary details (basic + allowances)
- Working hours and rest days
- Duration of the contract
- Probation period (max 6 months)
- Termination and resignation terms
These elements protect both the employer and employee in case of disputes.
Probation and Termination Clauses
The rules have become stricter around termination and probation:
- Probation cannot exceed 6 months
- Either party must give 14 days’ notice to terminate during probation
- After probation, a 30-day notice is mandatory
- Arbitrary dismissal leads to employee compensation up to 3 months’ salary
Notice Periods (Resignation or Termination)
UAE employment contract rules 2025 mandate that notice periods be fair and mutually agreed. Standard practices include:
- 30 to 90 days notice based on seniority and job type
- Early termination without notice may incur penalties
- Termination must be in writing and with clear justifications
End of Service Benefits (EOSB)
All full-time employees are entitled to gratuity at the end of their service if they complete at least one year.
- 21 days of salary for each of the first 5 years
- 30 days for every year thereafter
- EOSB is calculated on basic salary only
Make sure your contract references these terms explicitly.
Renewing & Cancelling Contracts
Contracts under the new law:
- Can be renewed unlimited times
- Must be signed electronically via MOHRE or free zone portals
- Cancellation requires labour card and visa cancellation from the sponsor
Failure to cancel correctly can lead to a labour ban of up to 1 year.
Protections for Workers in 2025
The UAE employment contract rules 2025 ensure that:
- Overtime pay is mandatory (after 8 hours/day)
- Weekly day off is a legal right
- Workers cannot be forced to sign blank contracts
- Complaints can be filed online via MOHRE smart app or call center 80060
Key Takeaways for Job Seekers
If you’re applying for a job in UAE in 2025:
- Never accept an offer without a written contract
- Read every clause carefully, especially salary and termination terms
- Ask your employer to upload the contract to the MOHRE system
- Know your legal rights and contact labour authorities in case of abuse
Final Word
Understanding the UAE employment contract rules 2025 is vital for anyone working in the country. Whether you’re a cleaner, driver, technician, or HR specialist, your contract defines your protection, rights, and future. Mahad HRC helps thousands of job seekers every year secure legal and transparent employment in the UAE.
If you need help reviewing your contract or finding legitimate job offers with proper visa support, contact MahadHRC.ae today.