Employment Contracts and Visas in the UAE

As one of the most dynamic economies in the Middle East, the United Arab Emirates (UAE) continues to attract a highly skilled and diverse workforce. However, operating in this environment requires a nuanced understanding of employment contracts, visa sponsorship rules, and labour compliance. For employers and employees alike, ensuring legal alignment is critical to protecting rights, managing risk, and sustaining workforce stability.

This article provides a comprehensive overview of employment contracts and visa frameworks in the UAE, drawing on regulatory reforms and practical considerations for businesses.

Overview of the UAE Employment Landscape

The UAE Labour Law, most recently revised by Federal Decree-Law No. 33 of 2021 (effective from 2 February 2022), establishes the foundation for employment relationships in the private sector. It governs the terms of employment contracts, employer obligations, dispute resolution, and termination rights.

Alongside labour law, immigration regulations administered by the General Directorate of Residency and Foreigners Affairs and the Federal Authority for Identity, Citizenship, Customs and Port Security determine the issuance of work permits, residency visas, and employer sponsorship conditions.

Together, these frameworks shape the full lifecycle of employment, from onboarding and contract structuring to exit and repatriation.

Employment Contracts

Under the current law, all private-sector employment contracts must now be in fixed-term format, with a maximum duration of three years, renewable by mutual agreement. This replaced the previously standard unlimited contracts.

While there is only one formal contract type – fixed term, the UAE Labour Law recognises different working arrangements that can be reflected in the contract, including:

• Full-time – standard employment with one employer

• Part-time – Employee works for fewer hours/days, possibly for multiple employers (subject to the Ministry of Human Resources and Emiratisation (MOHRE) approval

• Temporary – for work that ends up one task completion or after a short duration

• Flexible – variable hours or days based on employer’s operational needs (agreed in advance)

• Remote work – may be incorporated as part of any arrangement above.

• These working models must still be documented in a fixed-term contract.

Key features to be addressed in any valid employment contract include:

• Job title and responsibilities

• Remuneration and benefits

• Contract duration and renewal

• Working hours and leave entitlements

• Termination notice periods

While contracts can be tailored within the bounds of the law, employers must ensure consistency with Ministerial Resolutions and free zone-specific rules (e.g., the Dubai International Centre (DIFC) or the Abu Dhabi Global Market (ADGM) have distinct employment regimes).

Visa Sponsorship and Employment Permits

In the UAE, employment is closely tied to visa status. All expatriate employees must hold a valid residency visa sponsored by their employer, accompanied by a labour card or work permit issued by MOHRE or relevant free zone authorities.

The standard visa issuance process includes:

• Initial job offer and contract registration

• Work permit approval

• Medical testing and Emirates ID application

• Residency visa stamping

Employers are responsible for the cost and administration of visa processing and renewals, which typically follow a 2-year validity cycle in the mainland UAE, with slight variation in free zones.

Key Employer Obligations

Employers in the UAE are subject to a wide range of compliance requirements, including:

• Timely salary payment through the Wage Protection System

• Health insurance coverage for all employees

• Registration with MOHRE, General Pension and Social Security Authority (for Emirati employees), and other relevant authorities

Ensuring that employment contracts are digitally registered and filed in both English and Arabic

In the event of disputes, UAE labour law requires a preliminary mediation stage at MOHRE before parties can proceed to court proceedings. The parties may also proceed to arbitration if very specific post-dispute conditions are met.

Termination and End-of-Service Benefits

Termination must be lawful and documented, with notice periods of at least 30 days (unless otherwise agreed). Employees dismissed without due cause may be entitled to compensation.

End-of-service gratuity remains a statutory obligation. For workers not covered by the new savings scheme, gratuity is calculated based on the basic salary and the number of years of service. Employers must also manage:

• Visa cancellation and repatriation

• Payment of any outstanding dues

• Issuance of a No Objection Certificate if required

  
  

Special Categories

The UAE has introduced a series of alternative visa pathways to attract and retain global talent, including:

• Golden Visas for high-skilled professionals, investors, and entrepreneurs (10-year validity)

• Green Visas for freelancers and skilled workers without traditional sponsorship (5 year validity)

• Freelancer permits, particularly in free zones such as Dubai Media City or RAKEZ (1 -2 year validity)

These frameworks offer greater labour mobility and contractual flexibility but may require additional documentation and qualification thresholds.

Free Zones vs Mainland: Regulatory Divergence

Companies must be aware of the distinctions between mainland and free zone employment rules. For example:

• DIFC and ADGM have their own labour tribunals and operate under common law frameworks with distinct dispute resolution mechanisms

• Employment contracts may require dual compliance with both federal and free zone authorities

Businesses should seek local advice to ensure their employment models are appropriately structured and fully compliant.

Practical Considerations for Businesses

With constant regulatory evolution, employers should:

• Regularly audit employment contracts and visa records

• Maintain compliance calendars for renewals and legal updates

• Provide training to HR teams on emerging labour regulations

• Leverage digital platforms (e.g., MOHRE’s portal) to reduce administrative delays

Companies that proactively manage these obligations not only reduce legal risk but also enhance employee experience and retention.

The UAE’s employment and visa regime has matured into a structured yet dynamic system that supports a modern workforce. For businesses, aligning with these frameworks is more than a legal requirement, it is an operational imperative. Through careful contract design, timely visa management, and ongoing compliance, companies can attract top talent while safeguarding their legal standing in a competitive regional market.

To discuss this further, contact Theresa Abrefa.

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This material is provided for general information only. It should not be relied upon for the provision of or as a substitute for legal or other professional advice.