Back in 2021, UAE put in place a new Labour law “33” that went into effect on February 2, 2022. The new law applies to ALL company employees, visa card employees and even private sector employees in the UAE (Brown; True and Goddard, 2021). Once Labour laws were placed, ALL employees resident or foreigners must follow law, these laws don’t apply to federal or local government entities, armed forces, police or security or domestic servants (Labour lawyers in UAE, 2023). The law simply is replacing unlimited employment contracts with limited employment contracts. The contract goes up to three years and will have to be renewed after the three mark period.
Furthermore, the new Labour laws also focused on fixed-term contracts, an employee can be signed on a fixed-term contract up to three years. Terms can extend or be renewed for a certain amount of period, if the contract isn’t renewed or extended before expiration each party can continue the work, a new contract will be renewed around the same terms as the organical terms and conditions. (The new UAE Labor Law, 2023). Once extensions and renewals in the parties contract are included, the calculations of the parties end-of-service benefits.
