By The HR Observer Staff
The Ministry of Human Resources and Emiratisation (MoHRE) in the UAE extended the deadline for private sector employers to rectify unlimited-term employment contracts of their employees to fixed-term contracts.
The ministry said in a statement that the new deadline is 31st December 2023, instead of 2nd February 2023.
“The decision stems from our belief in enhancing flexibility, competitiveness and ease of business for private sector companies and safeguarding all parties’ rights,” the Ministry said in the statement.
The government entity said that they are providing “enough” time for companies to change the contracts to support the labour market.
“The private sector is a partner in the UAE’s development journey, we value its contributions to the UAE’s GDP. We have recently witnessed the private sector’s achievements in Emiratisation, which significantly helped to raise the overall rates of Emiratisation in the UAE,” said the ministry.
This decision is based on the Ministry’s Resolution No. 27 of 2023 on the extension of the deadline for rectifying employment contracts, said the ministry.
Moreover, the decision is an implementation of the Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector.
The fixed-term employment contract is subject to renewal based on what is agreed by both parties of the contractual relationship. In line with international practices, the contract doesn’t specify a limit for the duration of it.