Corporate Lawyer Archives - Mai Alfalasi Advocates & Legal Consultancy

An employment contract is an agreement of hiring an employee that an employer extends to an employee on the set conditions. A written agreement between a specific employee, an employer, or a labour union is known as an employment contract. It lays out the obligations and rights of the two parties—the employer and the employee.

It is a simple agreement that covers the working relationship between a company and an employee. With this contract, both parties understand their obligations and the terms of employment that the corporate lawyer from the top law firms in Dubai helps you with the drafting.

Employment Contracts in Dubai, UAE

Requisites of Employment Contracts

Here are the inclusions that an employment contract must have. This will give you a brief idea of what should be followed and added to the agreement between employer and employee.

The first important thing is to add the salary details. Even if you are hiring an employee on a commission basis, every little detail should be explained coherently.
The days and hours an employee is expected to work may occasionally be specified in an employment contract.
The duration of the employee’s commitment to work for the business will be outlined in an employment contract.
The various responsibilities and obligations that a worker will have while employed can be specified in contracts.
Even though you might need to sign a separate non-disclosure agreement, some contracts contain a confidentiality clause.
An employment contract may specify that the employer retains ownership and control of all communications if the employee’s duties include managing social media, websites, or email.
Another thing that should be added to the employment contract is the benefits the employer will provide to their employee. This may include health insurance details, coverage policy, leaves and vacations, encashment, bonuses, and other perks.
Only some contracts have it, but many employers want employees to put their signature to that non-competing agreement, or a non-competing clause (NCC) is added with care. Many companies take advice from their legal consultants for adding this clause to the contract. This clarifies that the employee cannot work in the primary role for a competitor company upon leaving the job.

Employment Contracts in Dubai, UAE

Federal Law No. 8 of 1980 regulates the employment law and the documents required in the law. However, several amendments have been presented for it, and still, it provides several labour conditions to be followed by all companies and business owners. Here is everything to know about employment contracts in Dubai, UAE.

New Implementation in the Law

The two- and three-year restrictions on fixed-term employment contracts in the private sector will be lifted according to new directions that the UAE government released in October 2022.

The Ministry of Human Resources and Emiratization (MOHRE) announced modifications to the decree law on the Regulation of Employment Relationships as part of an update to new labour regulations that went into effect in February.

The UAE ministry said employment contracts are essential under the new amendments since they define the term. However, no time is associated with the duration of the employment contracts being made. However, it is essential to note that the employment contract must be fully synchronized with an employee’s visa status, and the employer will administer that.

Types of Employment Contracts in Dubai

While we talk about UAE, there are two types of employment contracts. Here are the two types;

The limited-term employment contract
The unlimited-term employment contract

The main distinction between these contracts is the time or duration, which is determined by the fixed term for contracts. However, when a company hires a foreign employee, the company needs to obtain approval from the Ministry of Human Resources and Emiratization.

Based on this approval, the company can sponsor their employees for work visas and work in Dubai or other Emirates of the UAE. Moreover, if any foreign employee has made an employment agreement with a company in a free zone, the free zone authorities will directly sponsor their employee.

i) Limited-Term Employment Contracts
A fixed-term contract with a restricted period is typically correlated with the length of the UAE resident visa. Unless one party terminates it early or both parties agree to a renewal, it will automatically expire at the end of the term. Here are some factors to know about limited-term contracts;

In limited-term contracts, employers will engage the employees for specific projects known in advance.
These contracts have no notice provision and expire at the end of the term or on the date specified in the contract.
The renewal of this contract is done with the consent of both parties.

ii) Unlimited Term Contracts
According to UAE Labor Law, an unlimited-duration contract is unrestricted and may be cancelled for several reasons. Here are some factors to know;

It is a more flexible term contract.
It benefits the employees planning to take permanent work status and not just project-based work.

This contract term ends with a valid reason on a notice period of 30 calendar days.

How Can a Professional Lawyer Help You?

An employment contract lawyer is a legal advisor who assists with preparing, examining, or negotiating an employment contract. You may have to sign an employment contract when you accept a new job offer, and although it might only sometimes be required, many businesses demand the agreements.

MAAF Legal, on the best legal consultancy firms in Dubai, brings to you the most professional, qualified, and experienced advocates and lawyers who hold proven expertise in commercial law practices and drafting employment contracts and other documents.

The Final Words

Employment contracts are essential because they define and give the legal details essential for you to notice. You will need legal advisors who will work for you and provide legal solutions for drafting and implementing employment contracts while adhering to the legal bindings.

What We Cover

Corporate & Commercial
Dispute Resolution
Finance & Investment
Insurance
Arbitration
Litigation

Mai Alfalasi

Advocates & Legal Consultancy

1203, Green Tower
Baniyas Street, Deira
Dubai, United Arab Emirates

Phone. +971 4 223 0666
Whatsapp. +971 50 208 9986
Email. info@maaflegal.ae

Office Hours
9.00am to 6.00pm (GST)
Monday to Friday

No matter how successful your business is, there is one thing that all thriving businesses and enterprises need the most: corporate legal services. Regardless of the fact, how good and result-driven businessmen you are. It is equally important to have a legal partner or a resource who leverages the legal knowledge, experience, and skill set to provide you with the most cutting-edge knowledge and information at times that save you hefty fines and time.

By harnessing their knowledge and legal expertise, they will be a backbone of your business who will tackle as well as aid in all the legal matters of your business to keep in streamline with the legal regulations that may become a reason for hefty penalties and prison time if adequate measures and prior legal adherences have not been met.

You can think of hundreds and hundreds of companies and businesses failing to comply with the legal processes and hence being penalized by the law and code of conduct. This is where you need a corporate lawyer who oversees all your company’s legal compliances and keeps you properly aligned with the law measures to ensure you and your business stay out of trouble and get legal compliance at all times.

5 Reasons Corporate Lawyers are Necessary for Your Business

Many businesses don’t realize the adequate benefits that they can get by having corporate lawyers with them. If you are still confused as to whether or not you need corporate advocates in your business venture, here are 5 solid reasons that show how they benefit you and how they can be of excellent advantage for your successful business process;

1. Legalize Your Business Structure

The operations of a business in a streamlined process are necessary. However, it is important to note that without legal support or guidance, this legal structuring of your business remains incomplete and often leads to devastating results. For example, laws and regulations change, and many business owners are unaware of their changes. This is where legal advocates working for your business will inform you beforehand, make necessary amendments, and take steps for 100% compliance with the regulations the government and authorities are implementing for further practice.

2. Make Legal Documents

There could be tens of hundreds of legal documents you may require as a business owner. All of this does nothing but add to the miserable hassle of understanding the legal processes and drafting the documents the right way. This is where you will need a lawyer overseeing the legal affairs and doing all the legal matters for your business to set your mind on expanding your business while complying with the legal processes.

Furthermore, when dealing with all the documentation and paperwork, they ensure to include all the provisions that should be mentioned and properly explained regarding your business operations in the following industry that certainly do not violate legal and business interests.

3. Ensure Due Diligence

Often business owners and people managing the business are not adequately aware and possess knowledge about performing and ensuring due diligence. This results in a miserable manner for them as often they have to deal with penalties regarding non-compliant behavior and conductions.

So, legal associates working with you in your business venture will ensure to abide by the laws and regulations that are implemented by the authorities for transparent business operations and activities. The role will primarily focus on taking necessary measures that a diligent buyer or seller should take before entering a binding agreement. For example, selling land, staking a business, establishing partnerships, forming strategic relations, and even starting joint ventures.

4. Informing Employment-Related Predicaments

Abiding the laws concerning employees and dealing with labour becomes necessary. Regardless of how many employees you have, if you are starting a business, you need to set some minimum wages, holiday entitlements, maternity leaves, sick leaves, and more. These are the laws that you have to set when setting up your company. And all these employment-related issues may seem normal to deal with but become troublesome in the long run.

So, integration of these business-related issues and setting specific obligations to actively integrate these laws into your business processes become necessary. This is where legal advocates in Dubai will help you with.

5. Deal with Legal Challenges

Another thing that becomes worthy of your attention is dealing with legal challenges. Legal advisors in a company have the knowledge, expertise, and skillset to help you elude or deal with legal challenges while ensuring that your business stays out of trouble.

Your corporate lawyers or legal team of advisors will assess all the legal activities and make sure to elude legal threats to diffuse the situation before it becomes a stringent matter. Moreover, in some cases, even if the matter escalates, they are properly experienced in dealing with them and fighting aggressively via litigation, mediation, or arbitration.

The Final Takeaway

Several times, the problems related to legal matters may not seem important to business owners. However, in a matter of time, their escalation and severity complicate the process and often lead to devastating results. In situations like these, your business cannot afford the complications related to time and money.

So, having a business or corporate lawyer is a one-active and intelligent way of protecting and legally authorizing your business. Furthermore, Mai Alfalasi is the leading legal company of advocates and lawyers who provide corporate lawyers with years of experience and skills to protect your business and ensure compliance for your enterprise.