DMCC Employment Contracts in the UAE

Dubai Multi Commodities Centre DMCC free zones have a key standing in the trade, commerce, and business sector of the UAE. The businesses and organizations are continuously thriving in a dynamic and diverse environment. A great number of workplace is based on expatriates and thus, the importance of labour employment contracts in DMCC doubles. It is equally important for employees and employers.

Primarily, the labour and employment contracts in DMCC are governed by UAE Federal Decree-Law. The law was initially introduced in 2021 that standardize labour relations.  It also caters to the free zones like DMCC. The employment contracts in DMCC contain the terms and conditions, provisions, and conditions of employment, responsibilities, ensuring a high degree of clarity between the employer and employee. Further, it is also important for a better understanding and mutual agreements between the two parties.

There are amendments made to UAE labour and employment laws. According to the updates, the employment contracts within the Dubai Multi Commodities Centre DMCC are now declared limited-term contracts.

The maximum duration of the contracts is restricted to 3 years.  However, they can easily be renewed after a certain time. The renewal is based on mutual agreements. This is a landmark step in transitioning the unlimited-term contracts into limited-term contracts. It was made compulsory that the process must be completed by the end of 2023.

The key components of the employment contracts are explained in detail below. The standard DMCC employment contract includes the job title, job description, compensation details, working hours, leave entitlements, Probation time, and termination clause.

All employers are encouraged to use the DMCC-provided employment contract templates. It is often necessary to ensure compliance with legal specifications.​

The termination of employment contracts in DMCC should be according to the stipulations of the UAE labour law. Moreover, the notice period must be served according to the period set. Both the employees and employers should provide the notices within 30 to 90 days. It is clearly specified in the DMCC employment contracts. For further information, readers can also contact DMCC directly.

Additionally, the failure to do so will result in relevant notices. This will result in compensation that is equivalent to the notice period.​

There must be valid and legitimate grounds for termination. The reasons for the termination should be mentioned categorically.  Termination reasons can be mutual agreement. It happens when both parties mutually agree to end the agreement.

Another is that the contract reaches its expiry. The renewal is not requested. Thirdly, the serious misconduct could be a valid reason for termination. It may include theft, fraud, forgery, and violation of company policies.

All employers should make sure that the terminations are not arbitrary. It must be backed by legitimate and valid reasoning. This is the best way to avoid legal implications.

Employment lawyers in the UAE assist in navigating the DMCC employment contracts. They have a better understanding of the UAE labor laws and understand the complexities in Free zones like Dubai Multi Commodities Centre DMCC.

It is advisable to engage a skillful employment lawyer, who is capable of providing invaluable legal guidance regarding a range of matters.

They assist in drafting the contracts and review the terms and conditions. Added, it is their duty to make sure the contracts are comprehensive and compliant with the UAE labor laws.

By leveraging the expertise of an employment lawyer in the UAE, both employers and employees can benefit from the professional services. They will ensure the interests are safeguarded, which helps in maintaining harmonious workplace relations.​