Why did unlimited contracts disappear?
Federal Decree-Law No. 33 of 2021 replaced the old limited and unlimited system with a single fixed-term model for the private sector. Existing unlimited contracts had to be converted, and companies that did not convert found themselves unable to complete routine MoHRE transactions.
The practical effect is that every contract now has an end date and a renewal decision attached to it.
- One contract model: fixed-term, maximum three years
- Renewable for the same or a shorter period
- Notice periods run between 30 and 90 days as agreed
- End-of-service gratuity continues to accrue as before