Companies in the UAE are scrambling to meet the deadline for changes to employment contracts, according to a leading lawyer.
Firms must submit fixed-term contracts for employees by February 1 or risk being fined.
Initially, it was announced that companies must provide a fixed three-year contract for all staff. However, the government scrapped this in October and allowed employers to agree on the duration with employees.
This has led to many companies who had previously submitted proposals before October having to redraft contract agreements.
“There are a lot of companies that are trying to scramble together and make sure everything is ready ahead of the deadline,” Sabrina Saxena, senior counsel with law firm Al Tamimi and Company, told radio station Dubai Eye.
“That’s partly because the labour authorities changed their position over the last few months in terms of the templates they were putting together.
“The term of the contract used to have a three-year cap but the labour law was changed towards the end of last year, so now a lot of companies are trying to get to grips with the changes and put the contracts in place.”
Businesses that fail to meet the February 1 deadline run the risk of incurring fines, even though the government has not announced how much.
Ms Saxena said the fines would most likely be issued to employers rather than staff members if contracts were not updated in time.
“I can’t imagine that any employee would be fined as a result of not transitioning across to a fixed-term contract,” she said.
“The onus is on the employer to make sure all employees are transitioned across.”
The changes to employment contracts affect all workers in the UAE unless they are in the Abu Dhabi Global Market and Dubai International Financial free zones.
Families employing domestic workers are also exempt from the changes.
The change will allow firms and staff to agree on part-time work, job-sharing and project-based tasks with more ease.
UAE salaries at a glance - in pictures
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TEACHER/LECTURER: The average salary in UAE is Dh9,000 with lows of Dh4,000 and highs of Dh21,000. Headteachers earn an average of Dh46,000 with highs of Dh75,000. University staff are typically well paid, with assistant professors and full lecturers earning between Dh20,000 and Dh40,000. AFP -

FLIGHT CREW: Salaries for cabin crew and aircraft technicians range from Dh6,000 to Dh23,000. Pilots can usually secure between Dh20,000 to Dh60,000, depending on experience. EPA -

FOOD AND DRINK: The average salary for a bartender, waiter or supervisor is Dh4,000 to Dh5,000, rising to Dh7,500 to Dh8,500 for managers. Chefs and head chefs can expect to take home between Dh6,000 to Dh38,000. Hotels often provide staff accommodation. Hollie Adams / Getty Images -

ACCOUNTING AND AUDITING: A flooded market with basic accountants often earning Dh5,000 to Dh10,000. Senior auditors can earn Dh30,000 or more. Accountants who move into finance and management can expect significantly higher salaries. Getty Images -

CONSTRUCTION: Engineering jobs have been hit hard by a downturn in the sector, but it remains a skilled and respected profession. Junior salaries for site inspectors and engineers begin at a few thousand dirhams, rising to Dh45,000 or more for construction managers. Gulf Talent says salaries in Saudi are higher than the UAE in some roles. Sammy Dallal / The National -

NURSES: The true heroes of the pandemic, these professionals worked around the clock to treat patients and save lives. Salaries range between Dh4,000 to Dh14,500 and can be higher for senior nurses in higher-end private hospitals. AFP -

HEALTH AND SAFETY: Health and safety has become a key priority. Junior roles in this sector can take home, on average, about Dh5,500 a month. That rises to Dh22,500 for managerial positions. Victor Besa / The National -

HOSPITAL ADMINISTRATOR: Non-medical staff are currently in demand as the role of managing patients, their documents, payment and test results is increasingly crucial. Salaries vary but can be in the same region as nurses. Reem Mohammed / The National -

CYBERSECURITY: The threat posed by cybercrime has never been more real, with the sale of financial assets, documents and medical records a lucrative business. Systems analysts and software engineers can earn Dh25,000 or more, rising significantly for those with high-end cybersecurity experience. Unsplash -

HR, MARKETING AND FINANCE: Senior roles in these managerial classes vary significantly, but are generally well paid and often come with performance-related bonuses. Gulf Talent lists HR manager and HR business partner salaries at up to Dh42,500. An HR director of a major firm can earn twice that. Getty Images -

SALES AND MERCHANDISING: As the economy slowly picks up, the retail sector will be looking to fill key roles again soon. Gulf Talent lists sales staff salaries from Dh1,500 to Dh3,500. A sales merchandiser can take home twice that each month. Paulo Vecina / The National -

HOTELS: A duty manager at a hotel can earn anywhere from Dh6,000 to Dh26,000 per month. Front of house staff, including concierge, can take take home between Dh1,500 to Dh9,000. Staff accommodation is typically provided. Sarah Dea / The National -

LEGAL: Lawyers and legal advisors can earn between Dh7,500 to Dh37,500. That rises to more than Dh53,000 for legal counsel positions, though the average sits at about Dh20,500. Jeff Topping / The National -

OFFICE ADMINISTRATION: Jobseekers for secretarial and receptionist roles can expect salaries ranging from Dh2,500 to Dh8,000. Personal assistants and office managers fare better, from Dh4,500 up to Dh22,500 for higher-end firms. Getty Images
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
The specs
JOKE'S%20ON%20YOU
How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
COMPANY%20PROFILE
What is type-1 diabetes
Type 1 diabetes is a genetic and unavoidable condition, rather than the lifestyle-related type 2 diabetes.
It occurs mostly in people under 40 and a result of the pancreas failing to produce enough insulin to regulate blood sugars.
Too much or too little blood sugar can result in an attack where sufferers lose consciousness in serious cases.
Being overweight or obese increases the chances of developing the more common type 2 diabetes.
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
Killing of Qassem Suleimani
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Zayed Sustainability Prize
While you're here
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5


