UAE extends deadline for private sector employers to rectify unlimited-term employment contracts

Gulf Today, Staff Reporter

The Ministry of Human Resources & Emiratization (MoHRE) has announced the extension of the deadline for private sector employers to rectify unlimited-term employment contracts of their employees to fixed-term contracts.

The new deadline now is Dec31. 2023, instead of Feb2. 2023.

“The decision stems from our belief in enhancing flexibility, competitiveness and ease of business for private sector companies and safeguarding all parties’ rights,” the Ministry said.

On the other hand, private sector companies must register their Emirati employees in the pension system within one month from the issuance of their work permits, the Ministry of Human Resources and Emiratisation said.

“This is a legal requirement that companies must apply,” the ministry explained.

The ministry announced that it has applied financial contributions to private sector companies for failing to achieve the Emiratisation targets stipulated for the year 2022.

This is in line with the implementation of the UAE Cabinet’s resolution to raise the Emiratisation levels of skilled jobs by 2 percent annually in private sector establishments that have 50 employees effective 2022. The resolution aims to increase the Emiratisation rate to 10 per cent by the end of 2026.

The value of the financial contributions imposed on establishments amounted to Dhs72,000 for each Emirati not appointed during 2022. This is calculated at the rate of Dhs6,000 per month for every UAE national.

Saif Al Suwaidi, Undersecretary for Emiratisation Affairs at MoHRE, has called on the private sector establishments to abide by the Cabinet’s resolution and contribute effectively to raising Emiratisation rates in the private sector, which will enable Emiratis to participate in this important sector.