Labour Contract Renewal in Dubai

Labour Contract Renewal in Dubai: What You Need to Know

Renewing a labour contract in Dubai can be a daunting task for both employers and employees. With the ever-changing labour laws in the city, it is essential to understand the process of contract renewal to avoid any legal complications and ensure compliance with the law.

In this article, we will guide you through the process of labour contract renewal in Dubai and answer some commonly asked questions.

What is a labour contract?

A labour contract is a legally binding agreement between an employer and employee that outlines the terms and conditions of the employment relationship. The contract specifies the job description, salary, benefits, leave entitlement, and other employment-related details. It is mandatory for employers in Dubai to provide a written labour contract to their employees.

When does a labour contract need to be renewed?

A labour contract in Dubai has a validity of two years. Employers are required to renew the contract before the expiry date to avoid any legal issues. It is essential to note that the renewal should be done through the Ministry of Human Resources and Emiratisation (MOHRE).

How to renew a labour contract in Dubai?

There are two ways to renew a labour contract in Dubai: automatic renewal and manual renewal.

Automatic Renewal: If both the employer and employee agree to renew the contract under the same terms and conditions, it can be automatically renewed through the MOHRE`s online platform, Tas`heel. The employer needs to pay the renewal fees, which is usually AED 300, and the new contract will be valid for another two years.

Manual Renewal: If the renewal is not automatic, the employer needs to submit a request for contract renewal to the MOHRE through Tas`heel. The request should be made at least 30 days before the expiry date of the contract. The employee needs to sign the new contract, and the employer needs to pay the renewal fees.

What happens if the labour contract is not renewed?

If the labour contract is not renewed before the expiry date, the employer may face legal consequences. The employee can file a complaint with the MOHRE, and the employer may be penalized with a fine or even a ban from hiring new staff. It is therefore essential to renew the contract before the expiry date.

Conclusion

Renewing a labour contract in Dubai is a crucial process that should be done before the expiry date to avoid legal complications. Employers should understand the process of renewal and ensure compliance with the law to avoid any penalty or ban. Employees, on the other hand, should be aware of their rights and always demand a written labour contract from their employer.