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UAE employment contracts: fixed term, work models and non-compete

Private-sector contracts are fixed-term and can be renewed; renewals count towards gratuity. The law recognises six work models, and a non-compete clause can last at most two years after the contract ends.

By MyGuide AE Editorial 1 min read 26 September 2026

Under the 2021 Labour Law, private-sector employment contracts are fixed-term and can be renewed. The law recognises six work models, and allows a non-compete clause of at most two years after the contract ends.

Fixed-term contracts

A contract can be extended or renewed for the same or a shorter term.
If it expires and both sides simply carry on, it is treated as renewed on the same terms.
Every extension or renewal counts towards end-of-service gratuity; see the gratuity calculator.

The six work models

Full time	One employer, full time
Part time	One or more employers, for a set number of hours or days
Temporary	A specific assignment; the contract ends when it is done
Flexible	Hours or days change with the employer’s needs
Remote	All or part of the work done outside the workplace
Job sharing	Tasks divided among workers as agreed in advance; part-time rules apply

Non-compete clauses (Article 10)

An employer may include a non-compete restriction, but only as far as needed to protect its legitimate business interests, and it must be defined by time, place and type of work. It can last at most two years from the end of the contract.

Probation

At most six months, not extendable, and it counts as service once you stay on. The notice rules are in probation period.

National student contracts

A full-time contract, at AED 4,000 a month or more, between an employer and an Emirati student on a programme approved by the Emirati Talent Competitiveness Council (Nafis). It lasts one year, renewable until graduation, and counts towards the company’s Emiratisation rate.

Checked against the UAE government portal (u.ae), content sourced to the Ministry of Human Resources and Emiratisation, on 26 September 2026. Fees change; the Ministry’s service cards are the reference. See our editorial policy.

Sources we checked

The official bodies where these figures and rules are kept up to date. Where an official page disagrees with us, the official page is right.

Prices are what we last paid or last verified, in dirhams. Opening hours change on public holidays and during Ramadan — always confirm on the venue’s own site before you travel. Our editorial policy

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