Key takeaways
- Name both parties precisely: the legal entity with its licence number, and the employee as written in the passport.
- Break the salary into basic pay and each allowance — end-of-service and leave calculations depend on the split.
- State probation length, what notice applies during it, and what applies after it.
- Describe duties in a short list plus a reasonable-additional-duties sentence, not one catch-all line.
- Labour law is mandatory and country-specific; a contract cannot reduce a statutory minimum. Confirm current rules with the relevant labour authority or a lawyer.
The clauses an employment contract cannot omit
Read a contract as a stranger would three years later, with no memory of the conversation that produced it. Every clause below exists because its absence causes an argument.
| Clause | What it must fix | Typical failure |
|---|---|---|
| Parties | Legal entity name, licence number, address; employee name as per passport | Trading name used instead of the licensed legal name |
| Position and duties | Job title, department, reporting line, listed responsibilities | One line such as "as directed by management" |
| Start date and term | Commencement date, and whether the term is limited or unlimited | Term left unstated so renewal rights are unclear |
| Probation | Length, notice during probation, confirmation mechanism | Probation mentioned with no length or notice rule |
| Working hours | Daily and weekly hours, rest day, overtime treatment | Hours implied by "normal company hours" |
| Remuneration | Basic salary plus each allowance separately, currency, pay date | Single gross figure with no breakdown |
| Leave | Annual leave days, sick leave, public holidays, carry-over rules | Leave described only as "as per law" with no figure |
| Termination and notice | Notice each way, payment in lieu, grounds for immediate dismissal | Notice stated for the employer only |
| Confidentiality and IP | What is confidential, how long, ownership of work product | Clause omitted entirely for technical roles |
| Governing law | Jurisdiction and the language that prevails in a bilingual contract | Two languages, neither declared as controlling |
Writing the salary clause so it survives an end-of-service calculation
In the GCC, gratuity, leave pay and many statutory calculations are based on basic salary, not the total package. A contract that shows only a single figure forces someone to reconstruct the split later, usually under pressure and in disagreement.
- State basic salary as its own figure, then housing, transport and any other allowance on separate lines.
- Give the currency in ISO form (AED, SAR, QAR) rather than a symbol.
- Say when salary is paid and through which channel, especially where wage protection rules apply.
- Describe commission or bonus as a scheme with a stated basis, or say plainly that it is discretionary.
- Note deductions that are permitted, and confirm no others will be made without written consent.
If the contract registered with the authority differs from the one signed internally, the registered version is normally the one that counts. Keep the two identical.
Probation, notice and the exit path
Probation and notice are the clauses most often copied from an old template and left inconsistent. Decide the probation length, the notice that applies inside it, and the notice that applies after confirmation — then check that no figure falls below the statutory minimum in your jurisdiction.
Probation
- State the length in months and the date it ends.
- State the notice each side gives during probation, which is usually shorter.
- Say whether confirmation is automatic on the end date or requires written confirmation.
- Say whether probation can be extended, and by how long, if that is permitted where you operate.
Notice and termination
- Give a symmetrical notice period unless there is a reason not to, and state it in days or months consistently.
- Allow payment in lieu of notice explicitly if you intend to use it.
- List grounds for termination without notice narrowly and factually.
- Set out return of property, handover obligations and final settlement timing.
Duties, confidentiality and post-employment terms
Duties should be specific enough to be recognisable and open enough to allow ordinary change: four to eight responsibilities, then a sentence covering reasonable additional duties consistent with the role. That combination is far more defensible than a single catch-all clause.
Confidentiality should define the category of information, not list every document. Intellectual property should say who owns work created during employment. Non-compete and non-solicit clauses are enforceable only within limits that vary sharply by country — keep the scope, duration and geography modest, and take local advice before relying on one.
Signing, copies and the documents that follow
Print both counterparts on letterhead, have each page initialled, and give the employee a signed copy on the day they sign. Store the signed contract with the offer letter it followed and any later amendment, each amendment referencing the original by date.
The contract sits in the middle of a document chain: the offer letter precedes it, and salary certificates, no-objection certificates and eventually an experience certificate all quote the details it fixed. Getting job title, dates and salary breakdown right here saves correcting them in every later letter.
How to write an employment contract
Step 1: Identify the parties
Use the licensed legal entity name with its licence number and address, and the employee's name exactly as printed in the passport.
Step 2: Define the role
State job title, department, reporting line and four to eight duties, then allow reasonable additional duties consistent with the role.
Step 3: Fix dates and probation
Give the start date, whether the term is limited or unlimited, the probation length and the notice that applies during probation.
Step 4: Break down pay
State basic salary and each allowance separately, with currency, pay frequency and payment method.
Step 5: Set leave, hours and benefits
Give annual leave days, sick leave, working hours, rest day, overtime treatment and any medical or ticket entitlement.
Step 6: Add termination and legal clauses
Notice each way, payment in lieu, grounds for immediate termination, confidentiality, intellectual property and governing law.
Step 7: Sign and distribute
Print on letterhead, initial each page, sign both counterparts and hand the employee a copy the same day.
Frequently asked questions
Does an employment contract have to be in writing?
In practice yes, and in most GCC jurisdictions a written, registered contract is required for a work permit. Even where an oral arrangement is recognised, the employer carries the burden of proving its terms, which is exactly what a written contract avoids.
What is the difference between a limited and unlimited term contract?
A limited term contract runs to a stated end date and sets out what happens on early termination; an unlimited contract continues until either side gives notice. Which types are available, and how early termination is compensated, depends on the current labour law where you operate.
Can an employment contract override labour law?
It can improve on statutory minimums but not reduce them. A clause giving less annual leave or shorter statutory entitlement than the law allows is normally unenforceable, and the statutory figure applies instead.
How long can a probation period be?
Maximum probation length is set by law and differs by country, commonly measured in months. State the exact length in the contract and check the current statutory ceiling before you sign.
Do I need an Arabic version of the contract?
For registration with a labour authority in the GCC an Arabic version is usually required, and it often prevails in a dispute. If you issue a bilingual contract, state clearly which language controls.
What happens if we agree a change later?
Record it as a written amendment that references the original contract by date, states only what changes and the effective date, and is signed by both parties. Do not quietly reissue the whole contract with different terms.
Is a non-compete clause enforceable?
Sometimes, and only where its duration, geography and scope are reasonable and it protects a genuine business interest. Broad worldwide or open-ended restrictions are commonly struck down or narrowed by courts.