To give the private sector enough time to adjust

“Human Resources” extends the deadline for converting employment contracts to “fixed-term” until the end of the year

Giving sufficient time to private sector companies to rectify contracts stems from the principle of supporting the labor market.

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The Ministry of Human Resources and Emiratisation announced the extension of the deadline for converting private sector employee employment contracts from “unspecified term” to “definite term” contracts until December 31, 2023, instead of February 2, 2023, based on the ministry’s commitment to support the private sector, and give it flexibility and sufficient period to correct Employment contract statuses, without any impact on business progress.

The Ministry stressed that the decision to transfer contracts enhances flexibility, the principle of ease of business and competitiveness of private sector companies, and guarantees protection for both parties to the contractual relationship, which will reflect positively on the national economy, which has entered a new era of growth, within the framework of implementing the “fifty” plan, which puts polarization in place. Retaining talents and competencies, and empowering vital economic sectors are at the forefront of priorities, in an effort to consolidate the UAE's presence globally as a vital and competitive economic center.

The ministry stated that "granting sufficient time to private sector companies to rectify contracts stems from the principle of supporting the labor market, providing the necessary tools for companies to thrive, succeed, sustain and facilitate business, in addition to giving the required flexibility to establish ease of business."

The Ministry affirmed the positive implications of amending the contracts of workers in the private sector, to be of fixed duration, in accordance with international standards in this regard, and the consequent facilitation of calculating the worker’s entitlements at the end of his service, and thus improving the investment climate and business environment, to encourage companies, investors, entrepreneurs and talented people. around the world to work in the UAE, especially within the priority strategic sectors.

The ministry added that it “views the private sector as a partner in the country’s developmental march, as we value its efforts and contributions to the country’s gross domestic product, and its effective role in the Emiratisation file finally, had a clear impact in raising the overall Emiratisation rates, and benefiting from the experiences of the citizen youth, And harness it for the benefit of the development of the local economy ».

Ministerial Resolution No. 27 of 2023 regarding the deadline for transferring employment contracts comes in implementation of Federal Decree Law No. 33 of 2021 regarding the organization of labor relations, and amendments to some of its provisions that stipulate the conclusion of an employment contract for a specified renewable period.

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