When Does an Employment Contract Become Legally Binding?

There are a lot of things that we are not familiar with when it comes to the laws of the country.Some companies and employees are no aware of the Labour Law, hence they miss some important things that should have been noted. This is why there are labour lawyers in Dubai who take care of this kind of issues, giving labor employment law advice Dubai  UAE to those in need.

What is an Employment Contract?

Every company has (and should have) employment contracts for all of their employees. This document serves to be a legal paper that has all the terms and conditions with regard to employment—being an employee to a company.

This certain document binds a person to a company with certain stipulations that apply based on the contract and the laws of the country.

Types of Employment Contract

There are various types of contract in some countries, and in the United Arab Emirates, there are two. The UAE Labour Law No. 8 of 1980 stipulates this, calling them limited and unlimited contracts. The below information site their differences.


The limited contract has a maximum duration of two years. The commencement and end date are all stated in the contract. The contract is cancelled when it reaches the end date, but it can still be renewed by both parties.

During this period, the employee cannot simply leave without finishing the two years. Also, the employee is entitled to a three months’ worth of salary if the employer decides to fire the employee after being in the company for a year or more but before the contract ends.


On the other hand, an unlimited contract is flexible. It does not have a commencement date or an end date. It is open-ended.

This kind of contract can only be ended with a notice of 1–3 months or a mutual decision between the two parties.If there is no notice and the employee resign, the employer can seek for compensation.

It is important that both parties do what needs to be done as their duties as employees and employers.

When is it Considered to Be Legally Binding?

The contract will have the commencement date written on it, stating that the employee will start on that date. The company will then have it registered to the system of the Ministry of Human Resources andEmiratisation.The date that is sated in the contract is the basis of gratuity calculation and such, unless the person has proof that the commencement of work is earlier than what is shown in the contract. It is important that the person does not start working before the contract is registered because it is dangerous for both the employee and employer.

When the contract has been registered to the said ministry,this is the only time that it can be considered legally binding.

When a dispute comes up between the employer and employee, this is when the labour lawyers in Dubai are reached to provide them with labor or employment contract advice UAE. To ensure that you are aware of the things you need to know about the Labour Law and such, you can find more information in HHS Lawyers and Legal Consultants.


Login/Register access is temporary disabled