Types of Employee Contracts in UAE

An employment contract is an agreement, usually offered by the employer to the employee. An employment contract sets the terms for the entire duration of the employment. It helps to clarify the employee’s responsibilities and spells out the rights of both parties involved.

Internal Employment Contract

Internal employee contracts are the most basic type of employment contract. As mentioned earlier, they outline the terms of employment and depict the expectations and requirements necessary from the employees. These contracts are governed by the labour laws of their respective country. The framework discussed in these contracts includes a basic job description, defining the roles and duties of the employee. It also includes the basis for termination of an employee contract, leading to a lapse in their job tenure. Further, it includes the monetary aspect of an employee’s contract with the benefits and compensation. Additionally, it encompasses the working hours of an employee as well.

MoHRE Employment Contract 

MoHRE contracts are unique to the United Arab Emirates (UAE).  They strictly adhere to the labour laws set by the Government of UAE. These employee contracts only apply to those individuals employed outside of free zones. MoHRE contracts manage relations concerning labour and guarantee the welfare of its employees. Like most employment contracts, MoHRE contracts highlight the rights of the employees, their working hours, and other aspects of their working conditions. Moreover, a unique feature of MoHRE contracts is that they specify the payment of end-of-term gratuities and rewards. MoHRE contract is the official working agreement.

Free Zone Employment Contract

Free zone employment gives the authority to a firm to abide by its unique employment laws. The employees are subject to the laws laid down by their respective free zones and are under a contract. These free zones regulate employment within their jurisdiction and their contracts differ among the various zones. It provides flexibility to businesses as they create their terms within the structure set by their respective free zone authority. The key elements of a free zone employment contract are specific policies which differ from area to area. 
It is pertinent for both employers and employees to understand employment contracts. The way they function, and the nuances of their specified choice of employment contract. The three types of employment contracts discussed have benefits of their own. Internal contracts offer an adjustable and altered perspective of an employment contract, whereas MoHRE contracts ensure adherence to the labour laws. Lastly, Free zone employment contracts allow versatility and flexibility within their respective zones. It ensures diversity in the employment landscape of the UAE.
Employment contracts prove to be a pillar for the complicated employer-employee relationship leveraging in the formation of a steady and productive environment.

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