According to the UAE Federal Decree-Law No. (33) of 2021, private sector employers have until December 2023, to change all employment contracts from Unlimited-Term to Limited-Term contracts. Employers in Abu Dhabi Global Market (ADGM) and Dubai International Finance Centre (DIFC), as well as those employing domestic workers are exempt from this requirement.
The Limited Contract applies to both mainland and free zone entities. It is a modification of existing contracts (not new contracts) and in most cases will not affect the expiry date. Assuming this is correct, employees current EID and Labour Cards would be unaffected.
All contracts will need to be updated before December 2023. Avoid the panic and get your employees contracts updated as soon as possible.
Employers are encouraged to review and manage the conversion of existing Unlimited-Term contracts into Limited-Term contracts to avoid incurring fines and labour file sanctions.