UAE Federal Decree-Law No. 33 of 2021 governs private-sector employment. Two main contract types are limited (fixed term) and unlimited (open-ended). This guide explains the difference, notice periods, probation rules, and non-compete and confidentiality clauses. We reference MOHRE guidelines and the law. Use our gratuity and employment benefits calculators to estimate end-of-service entitlements.
Limited Contract: Terms and Notice
A limited contract has a fixed end date. Termination before the end is only in specified cases (e.g. mutual agreement, serious breach, force majeure). If the employer terminates without a lawful reason, the employee may be entitled to compensation. If the employee resigns early, gratuity may be reduced as per the law.
Unlimited Contract: Conversion and Termination
An unlimited contract has no fixed end date. Either party can terminate with written notice (minimum 30 days, or more if the contract says so). Gratuity is calculated on the same basis as for limited contracts for the years served. Conversion from limited to unlimited (or vice versa) is subject to the law and contract.
Probation Rules and Notice Periods
Probation is typically up to six months. During probation, notice periods are shorter and either party may have different termination rights. Check your contract and MOHRE circulars for the exact rules. Do not assume you can leave without notice during probation without checking the consequences.
Non-Compete and Confidentiality
Non-compete and confidentiality clauses are enforceable if they are reasonable in scope, duration, and geography. Overly broad clauses may be struck down by the courts. If in doubt, take legal advice before signing or before leaving.
MOHRE Contract Templates
MOHRE provides standard contract templates. Employers must register contracts in the MOHRE system. Use these templates as a reference; custom clauses (e.g. non-compete) should be reviewed. Keep a signed copy of your contract and any amendments.
When to Seek Legal Review
Seek legal review if your contract has unusual clauses, you are negotiating a senior role, or you are planning to resign or dispute termination. Labour courts and MOHRE handle disputes. Use our Gratuity Calculator and Employment Benefits Calculator to estimate your entitlements.
Quick Reference
| Item | Details |
|---|---|
| Data source | Federal Decree-Law No. 33 of 2021 |
| Last verified | January 2026 |
| Expert reviewer | Varun Punjabi |