Firms 'scrambling' to meet UAE employment contract deadline

Many companies have left the requirement to the last minute

Firms must submit fixed-term contracts for employees by February 1 or risk being fined. Getty Images

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

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