The UAE employment landscape continues to evolve, and understanding employee contract types in the UAE is essential for employers, HR managers, and businesses hiring local or expatriate talent. In 2026, employment contracts are governed primarily by Federal Decree-Law No. 33 of 2021, along with its latest amendments and MOHRE regulations.
At Workforce Group, a trusted manpower supply and recruitment company in Dubai and across the UAE, we help businesses choose the right contract structure to remain compliant, cost-effective, and flexible.
This guide explains the main types of employee contracts in the UAE, their features, benefits, and when to use them.
1. Limited (Fixed-Term) Employment Contract
Overview
A limited contract (now officially called a fixed-term contract) is the most common employment contract in the UAE as of 2026.
Key Features
- Maximum duration: up to 3 years
- Can be renewed or extended
- Clearly defined start and end date
- Mandatory for most private-sector roles under MOHRE
Best For
- Project-based roles
- Construction and infrastructure projects
- IT implementations
- Temporary or contract staffing needs
Termination Rules
- Either party can terminate with 30–90 days’ notice (as per contract)
- Early termination may involve compensation if not justified
Workforce Group Tip: Fixed-term contracts are ideal when hiring through contract staffing services in Dubai for time-bound projects.
2. Unlimited Employment Contract (Phasing Out)
Overview
Unlimited contracts issued under previous UAE labor regulations remain valid, but employers are required to align them with the current fixed-term contract framework.
Status in 2026
Still valid if issued earlier
Must comply with updated termination rules
Gradually being replaced across the UAE
Termination
Notice period applies (30–90 days)
No contract end date
Note: Employers should review legacy contracts to ensure compliance with current UAE labor law.
3. Full-Time Employment Contract
Overview
A full-time contract requires employees to work standard working hours exclusively for one employer.
Key Features
8 hours per day / 48 hours per week (private sector)
Includes full benefits:
Annual leave
Health insurance
Overtime (where applicable)
Best For
Permanent roles
Core business operations
Banking, healthcare, retail, logistics, and IT sectors
Workforce Group Insight: Most clients hiring long-term staff through our recruitment services in Dubai prefer full-time contracts.
4. Part-Time Employment Contract
Overview
A part-time contract allows employees to work fewer hours and, in some cases, for more than one employer (with MOHRE approval).
Key Features
Reduced working hours
Salary and benefits calculated proportionally
Requires a MOHRE part-time permit
Best For
SMEs
Retail & hospitality
Support roles
Flexible workforce needs
Benefits
Lower operational cost
Workforce flexibility
Legal option for skilled professionals seeking flexibility
5. Temporary Employment Contract
Overview
A temporary contract is used for short-term workforce requirements, usually less than 6 months.
Key Features
Defined duration
No long-term commitment
Suitable for urgent manpower needs
Best For
Events and exhibitions
Seasonal demand
Emergency workforce replacement
Workforce Group Specialization: We provide compliant temporary manpower supply in UAE across construction, logistics, hospitality, and facilities management.
6. Contract Staffing / Project-Based Contract
Overview
Contract staffing allows businesses to hire employees through a third-party manpower supplier like Workforce Group.
Key Features
Workforce Group acts as the legal employer
Client manages day-to-day work
Payroll, visas, and compliance handled by us
Best For
Construction projects
Oil & Gas shutdowns
IT deployments
Large-scale infrastructure projects
Advantages
Reduced HR burden
Faster hiring
Full MOHRE compliance
Cost control
7. Freelance Contract
Overview
Freelancers work independently under a freelance permit, not a traditional employment contract.
Key Features
No employer-employee relationship
Freelancer manages own visa (in most cases)
Paid per project or service
Best For
Creative roles
Marketing & media
IT consultants
Trainers and specialists
Legal Note
Businesses must ensure freelancers hold valid UAE freelance permits.
8. Remote Work Contract
Overview
Remote work contracts are legally recognized in the UAE, especially after post-pandemic reforms.
Key Features
Work performed outside the office
UAE-based or overseas employees
Must clearly define working hours, data security, and responsibilities
Best For
IT professionals
Digital marketing teams
Support and back-office roles
9. Internship & Training Contract
Overview
Internship contracts are allowed under UAE law with clear guidelines.
Key Features
Fixed training duration
May be paid or unpaid (as agreed)
Not considered permanent employment
Best For
Fresh graduates
Skill development programs
Corporate training initiatives
Why Choosing the Right Contract Matters
Selecting the correct employee contract in the UAE helps businesses:
Stay compliant with MOHRE regulations
Avoid fines and legal disputes
Control labor costs
Improve workforce flexibility
Protect employer and employee rights
How Workforce Group Can Help
At Workforce Group, we support businesses across Dubai, Abu Dhabi, Sharjah, and the UAE with:
Recruitment & Executive Search
We help you choose, draft, and manage the right employee contracts based on your business needs and UAE labor law requirements.
Final Thoughts
Understanding the types of employee contracts in the UAE (2026) is critical for businesses operating in a regulated and competitive environment. With evolving labor laws and workforce models, partnering with an experienced manpower and recruitment company like Workforce Group ensures compliance, efficiency, and peace of mind.