Work Permits & Employment Contracts
Work Permits (Labor Approvals)
A work permit is the official authorization from MoHRE allowing a foreign worker to be employed by a UAE company. It is the first step in the employment visa process.
Types of Work Permits
1. New Work Permit: For a new employee entering the UAE. Valid for 60 days (to complete visa process).
2. Transfer Work Permit: For transferring an employee from one employer to another. Requires NOC from current employer (in some cases). Subject to MoHRE approval.
3. Renewal Work Permit: For renewing an existing work permit. Must be processed before expiry.
4. Temporary Work Permit: For short-term employment (up to 6 months). Used for project-based work.
5. Part-time Work Permit: For part-time employment. Requires approval from the primary employer.
Work Permit Application Requirements
Company requirements: Valid trade license, valid Establishment Card, active labor quota, no violations, WPS compliance.
Employee requirements: Valid passport (6+ months validity), passport-size photo, educational certificates (attested if required), employment contract (offer letter), health insurance.
Employment Contracts
Under Federal Decree-Law No. 33 of 2022, all employment contracts must be in writing. The standard MoHRE employment contract is mandatory. Contracts must be in Arabic and English (bilingual). Must include: employer and employee details, job title, work location, salary details (basic + allowances), working hours, leave entitlement, contract duration (limited or unlimited), probation period (max 6 months).
Contract Types
1. Limited Contract: Fixed term (usually 2 years). Ends automatically on expiry. No notice required for non-renewal. Early termination may incur penalties.
2. Unlimited Contract: Open-ended. Either party can terminate with notice (30-90 days). More flexible for both parties.
Note: Under the 2022 law, all new contracts should be limited-term. Existing unlimited contracts remain valid but new contracts are limited.
Probation Period
Maximum 6 months. Employer can terminate without notice during probation (with 14 days' notice). Employee can leave for another employer during probation (with 1 month notice). Employee must compensate employer for visa costs if leaving during probation.
Labor Quota
The labor quota is the number of visas a company can sponsor. Based on: office size, business activity, company type. Managed through MoHRE. Must be sufficient for new work permits. Can be increased with additional office space.
Wages Protection System (WPS)
Mandatory for all mainland employers. Salaries must be paid through WPS-compliant banks. Must be paid by the last working day of the month. Late payment results in penalties and work permit blocks. MoHRE monitors WPS compliance.
Employment Contract Registration
All contracts must be registered with MoHRE. Standard contract template used. Contract must be signed by both parties. MoHRE issues contract reference number. Contract is linked to the work permit and visa.
Key Changes Under 2022 Law
All contracts must be limited-term. No more unlimited contracts for new employees. Probation period capped at 6 months. Notice period: 30-90 days. End-of-service calculated on last basic salary. New termination rules. Non-compete clause allowed (max 2 years).