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How to Read a UAE Employment Contract Before You Sign: Salary, Hours and End of Service

By DXB TALK ·

A new job offer in the UAE is exciting, but the contract is the document that decides your pay, hours, leave and what happens when the job ends. Read it slowly, in a language you fully understand, and never rely only on a verbal promise or a short offer letter. Private sector employment is generally covered by UAE labour law overseen by MOHRE, the Ministry of Human Resources and Emiratisation, while free zone, government and domestic work can have different arrangements. Always confirm current rules on official MOHRE sources or with qualified advice before signing.

Start with the basics on the first page

Check your full legal name, passport details, the employer’s legal name, the job title, the start date, the workplace and the contract type. Most private sector contracts are now for a fixed term that can be renewed, often described in summaries as up to around three years, but confirm the current position with MOHRE rather than assuming. If the job title is much lower than the role you discussed, ask why, because the title on your work permit and contract can matter later for visas, bank accounts and future job moves.

Salary: look beyond the headline number

  • Is the figure monthly or annual, and is it written as a total package or as basic salary plus allowances?
  • How much is basic salary? This matters because end of service calculations are often based on basic pay, not the full package.
  • Which allowances are included for housing, transport, phone or flights, and are they guaranteed every month?
  • When is salary paid, by what method, and are bonuses or commission guaranteed or discretionary?
  • Are there deductions, training repayments or document fees? In general, employers should not charge workers for recruitment or work permit costs, so question any clause that passes those costs to you and check it with MOHRE.

If commission is a big part of the role, ask for the scheme in writing: how it is calculated, when it is paid, and what happens to commission earned before you leave.

Hours, overtime, rest days and leave

Standard summaries often describe a working week of around 48 hours for many private sector roles, with reduced hours during Ramadan, and overtime rules for extra work, but exact entitlements depend on your sector, role and current law. Confirm the current figures on MOHRE. Your contract or handbook should say your normal days and hours, your weekly rest day, how overtime is approved and paid, and how public holidays are handled if you must work them. Also check annual leave: how many days, when you can take them, whether leave must be used within a set period, and whether you receive a flight benefit or leave salary in advance.

Probation, notice and ending the job

Probation is commonly up to around six months in many summaries, and notice during probation can be different from notice afterwards. Do not assume a number you read online still applies. Read your contract for the notice period each side must give, whether notice must be in writing, and what happens if either side ends the contract early.

End of service benefits explained plainly

For many long-serving private sector employees, end of service gratuity is calculated from basic salary and length of service, with different treatment for shorter service and for how the employment ended. The precise calculation, qualifying periods and any alternative savings scheme options change over time and vary by employment type, so use the official MOHRE calculators and guidance rather than a friend’s estimate. If you are offered membership of a savings scheme instead of the traditional gratuity, ask for the scheme rules in writing before agreeing.

Other clauses worth a second look

Read non-compete, confidentiality, intellectual property and outside work clauses carefully. A non-compete should be limited in time, place and type of work to be reasonable, but get advice if it could block your next job. Also check medical insurance cover, who is covered, and any rules about company property, loans or advances.

A calm checklist before you sign

  • Compare the contract line by line with the offer letter and raise every difference in writing.
  • Ask for missing policies, such as commission or overtime rules, as attachments.
  • Never sign a blank or incomplete document, and never hand over your passport as a routine condition of employment.
  • If pressure is applied to sign immediately, pause. A genuine employer will allow reasonable time to read and check with MOHRE.

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