Navigating UAE Employment Contracts: A Complete Guide

Introduction:

Understanding the UAE employment contracts is essential when you are relocating to the country as a doctor. As the workforce in the UAE is diverse, clarity is important among all the contracts. This article will unfold all you need to know about UAE’s employment contracts so you can make an informed decision.

Types of Employment Contracts in the UAE:

Fixed Term Contracts:

According to Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, the ‘UAE Labour Law’ is an employment contract set for a specific duration. It clearly states a start and end date. The contract can be renewed or extended for an equal or shorter period when it expires.

If neither party renews nor extends the contract, but they continue working under the previously agreed terms, the law considers the contract automatically renewed.

Any extensions or renewals of the terms of the contract will be added when calculating an employee’s end-of-service benefits.

The law also requires that unlimited contracts (previously common) must be converted into fixed-term contracts within one year of the law’s effective date (February 2^nd, 2022). This ensures that all private sector contracts follow the same structure. The UAE cabinet may extend this transition period if needed for the public interest.

A fixed term contract defines the employment period upfront and ensures clarity for both the employer and the employee.

The probation period:

This is essentially a trial period for the employee, allowing the employer to assess performance and the employee to evaluate the job. The probation period cannot exceed 6 months, according to the federal decree law number 33 of 2021.

If the employee continues working after the probation period, the time spent during probation is counted as part of their total service duration, which is important for the end of service benefits.

If the employee wants to switch jobs within the UAE they must provide the employer with a 1-month prior written notice.

This setup ensures that both the employer and the employee are protected during the probation period.

Types of contracts for doctors relocating to Dubai:

There are five main types of contracts under which doctors may be employed. The structure of salary and benefits vary of each.

Full-time contract: fixed hours, salary and allowances:

These types of contracts are often offered by government or semi-government-funded institutions. There are no performance-based incentives; however, there is a lucrative salary package and package with allowances for accommodation and children’s education, as well as yearly flights to visit your home country.

Full time contract: Basic Salary with Performance-Based or Revenue-Sharing Incentives:

Most large-scale hospitals and clinics offer doctors a lucrative basic salary along with extra performance based or revenue sharing incentives. However, these contracts usually do not include allowances for children’s education or housing. Some employers might offer a lower basic salary with a higher revenue share model on top, depending on their business model.

Complete revenue share model:

 Highly driven Doctors who are well established and have successfully built a strong patient base and referral network in the market might choose to work on a complete revenue share model with no basic salary at all, as they tend to earn more with this arrangement. 

Community-Based Doctor (CBD): working in multiple hospitals or clinics:

By law, physicians must possess at least one full-time license under a facility (hospital or clinic) to practice in Dubai. Subsequently, they can obtain up to 2-3 additional part-time licenses with other hospitals/clinics, provided that the primary employer, who is providing the full-time license, grants the physician permission to do so.

Visiting contracts:

Physicians who are of highly demanded specialties, famous, or extremely well accomplished may sometimes secure work on a visiting contract at a relevant hospital or clinic that has the appropriate facilities. Additionally, those who offer a very niched skillset can also explore such opportunities. However, the arrangements regarding the flights, hotel stay, and remuneration vary. 

All facilities for all contracts usually provide the Doctors with health insurance, malpractice insurance 

Final Thoughts:

It is important to understand all the contracts thoroughly so you know what you’re walking into when getting employed in the medical sector of the UAE. However, if you’re unable to understand them, we at Stafmed have professionals ready to help you every step of the way. From getting your visa to employment in the UAE, we’ve got you covered!