A new Ministerial Resolution has extended the deadline for implementation of fixed-term contracts

On 2 February 2022, the New Labour Law (Federal Decree Law No.33 of 2021), as amended, entered into force. Under the new law, all employees are required to transition from unlimited-term contracts to fixed-term contracts. The deadline to do so was originally set to 1 February 2023.

However, on 25 January 2023, the UAE Cabinet issued Ministerial Resolution No.27 of 2023. This resolution has extended the deadline to 31 December 2023 and will come into effect from the date of publication in the Official Gazette (yet to be confirmed).

Currently, the extension applies to all mainland companies, i.e. those governed by the MOHRE.

However, it has been noted that some free Zones (not DIFC or ADGM) are now following suit. 

This extension buys employers a little more time to move employees onto fixed-term contracts but steps should be progressed now to ensure that this transition takes place before the end of 2023.