JAFZA (Jebel Ali Free Zone Authority) is one of the largest free zones in the world and is home to over 7,000 companies from around 100 countries. If you are looking to work in JAFZA, you will need to obtain a JAFZA labour contract. Here is a step-by-step guide on how to get one:

In conclusion, obtaining a JAFZA labour contract is a straightforward process that requires you to find a job in JAFZA, obtain a work permit, apply for a labour contract, submit the required documents, and obtain a medical fitness certificate. Working in JAFZA can be a rewarding experience, as it provides numerous opportunities for career growth and development.


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Under the UAE Labour Law No. 8 of 1980, there are two types of employment contracts: limited-term (or fixed-term) contracts and unlimited term contracts. The difference lies in the provisions for the end-of-service gratuity and termination. In 2018, the UAE implemented the part-time contract system by virtue of a ministerial resolution.

An unlimited term contract is open-ended, more flexible, and commonly used in the UAE. It can be terminated with mutual consent or by giving a notice of 1 to 3 months. The parties involved must honour their obligations throughout the notice period.

In 2018, the Ministry of Human Resources & Emiratisation (MOHRE) implemented a new rule which allows companies to recruit skilled workers from inside the country or from abroad under multi-employer part-time contracts. These types of contracts are limited only to skilled workers, namely holders of university or higher degrees and those who have completed two or three years diploma in any technical or scientific field.

Under this new system, part-time contract employees can take several part-time jobs without the approval of their original or other secondary employers; however, they are obligated to take a permit from the MOHRE.

On 26 January, the Jebel Ali Free Zone Authority (JAFZA) issued an announcement regarding the application of the New Labor Law within the free zone. In its announcement JAFZA clarified that employment contracts will be amended once new templates have been approved. JAFZA furthermore states that in line with the New Labor Law unlimited contracts must be amended within a one-year period from the date of the enforcement of the New Labor Law. JAFZA did not state whether its existing regulations regarding labor relations will be revised.

During visa cancellation, did you have to sign a Form 7 and received gratuity from your current employer? And have to start a new contract under PAC category? Or does your employment continued as is?

For General Inquiries and Service Requirements; kindly contact Customer Care on 80052392 or Email: callcenter@jafza.ae. Schedule a meeting with a Jafza Expert is only available for follow up and inquiries related to SR/DT cases.

In a deal worth $74.8 million (AED 275 million) the contractor will complete the fit-out of one of the twin-towers, in addition to completing associated external road works, for theĀ 

Ā Jebel Ali Free Zone (Jafza).

In September 2019, the Jebel Ali Free Zone Authority (JAFZA)announced updates regarding the replacement of bank guarantees andintroduced unlimited employment contracts for JAFZA-sponsoredemployees. This legal briefing looks at the recent changesintroduced by JAFZA and their practical implications.

Until recently, when applying for a new work permit andresidence visa with JAFZA, the online system automaticallygenerated a limited term employment contract with a contractduration of 3 years (renewable). Neither an unlimited contract nora limited contract with a shorter period than 3 years could beagreed on. This administrative practice created situations, whereemployees have been officially employed for a limited periodalthough the intention of the parties in many instances was toenter into an employment contract for an unlimited duration.

Companies can now opt to use the newly available form contractfor unlimited employment when applying for a new residence visa.However, companies also have the opportunity to transfer theirexisting employees from limited to unlimited employment contracts.This has to be done manually by submitting a request letter statingthe employees to be transferred to JAFZA's AdministrationDepartment of. JAFZA will then review the application and thecompany's status with JAFZA (e.g. whether fines have beenissued and/or the company is compliant with the Wages ProtectionSystem).

The introduction of unlimited employment contracts bringsJAFZA's employment procedures in line with the regulations inUAE mainland, where the employer can choose between unlimited andlimited employment contracts.

When terminating an unlimited employment contract with ajustified reason, no compensation as per Article 123 of the UAELabor Law (up to three monthly salaries) is due to the employee .However, termination of a limited-term employment contract triggerscompensation claims under Article 115 of the UAE Labor Law; theemployer has to pay the employee a compensation for the prematuretermination (three months' salaries or salaries for theremaining contract duration, whichever is shorter).

Likewise, in case the employee terminates a limited-termemployment contract prematurely, he/she is liable to paycompensation in the amount of half a month's salary for eachmonth of the remaining contract period (capped at 1.5 months'salary).

The introduction of an unlimited employment contract is along-awaited move. JAFZA companies should review existing(official) JAFZA employment contracts as well as any additionalterms and conditions / additional employment contracts. Whereappropriate, the official JAFZA employment contract should beamended and aligned accordingly.

In a recent case, in circumstances where the contractual agreement itself was valid, the Dubai Court of Cassation held that the separate agreement to arbitrate contained in that agreement was invalid on the basis that the signatory, although authorised to enter into the agreement, was not specifically authorised to bind the entity to arbitration. It is trite law that the agreement to arbitrate is a separate agreement to the agreement in which it is contained.

The relevant contract (Contract) contained a DIFC-LCIA, DIFC seated arbitration clause (Arbitration Agreement). The governing law of the Contract was that of England and Wales. Contrary to the agreed dispute resolution mechanism, Party A, a JAFZA offshore entity, commenced proceedings against Party B, a Cayman Islands entity, in the Dubai Courts (in circumstances where Party B had already taken steps in accordance with the Contract to commence arbitration proceeding in the DIFC-LCIA and had obtained an interim injunction in support of arbitration in the DIFC Courts against Party A).

Most jurisdictions within the UAE require the use of standard form of employment contracts. For entities operating in mainland UAE (outside of the free zone areas), the UAE Ministry of Human Resources & Emiratisation (MOHRE) has published a standard form employment contract. Similarly, Jebel Ali Free Zone Authority (JAFZA) (the authority which regulates Jebel Ali Free Zone) and a number of other free zones have issued standard forms of employment contracts.

The standard form employment contracts are invariably basic documents covering the minimum provisions required for an employment contract. Therefore, it is common for an employer and an employee (such as senior employees) to enter into a more sophisticated contract covering additional points not covered in the standard form contract or providing greater detail on standard provisions than what is typically included in the standard form contract.

Under the old Labour Law, it was permissible to enter into either limited term employment contracts or unlimited term employment contracts. However, under the new Labour Law, the concept of unlimited term employment contracts has been removed. There is no limit on the minimum or maximum number of years of a term. It is permissible to renew an employment contract for similar or shorter periods as agreed between the parties.

The probation period of an employee can be a maximum of six months. Under the old Labour Law, either party could terminate an employment contract during probation period without notice. Under the new Labour Law, however, notice of termination of employment is required to be served and notice period will vary depending on the circumstances.

The Labour Law does not provide for termination of employment at will. The Labour Law provides for grounds on which an employment contract may be terminated by either party. In case of wrongful termination of an employment contract by an employer, the UAE courts may award compensation to an employee which is capped at a maximum of three months of current salary[1].

All employment contracts must be governed by the laws of the UAE and be subject to UAE local courts. In case of a dispute, irrespective of the provisions of an employment contract, UAE courts will have jurisdiction and will apply the laws of the UAE. An employment dispute cannot be subject to resolution through arbitration.

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20.4 Assignment. The Customer shall not, without the prior written consent of Aggreko, assign, transfer, mortgage, charge, subcontract, declare a trust over or deal in any other manner with any of its rights and obligations under the Contract.

21.1 Law and Jurisdiction. This Contract shall be governed by and construed in accordance with the laws of England & Wales. The Contract and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be subject to the exclusive jurisdiction of the Courts of the Dubai International Financial Centre. 006ab0faaa

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