You’ve just been offered a role in the UAE - the salary feels almost too good to be true, it’s the lifestyle you’ve been dreaming about, and maybe even a career step that could change your life. You’re excited, and you should be!
But very often we see new expats get caught up in the excitement and forget that UAE employment contracts are not written the same as in the UK, Europe, or Australia. They’re shorter, less regulated, and the reality is - if something isn’t written in the document, it usually isn’t guaranteed.
We’ve reviewed hundreds of UAE employment contracts and see the same issues come up again and again; not because people aren’t careful, but because they didn’t know what was missing or what to look for. Most people read their contract once, assume it’s fairly standard, and sign. For some their dream job quickly turns into a nightmare..
Before you sign, make sure you know WHAT you’re agreeing to.
To help you, here are 6 clauses we find usually cause the most confusion, frustration, or surprises later on.
1. Bonus Terms - “Discretionary” Does Not Mean Guaranteed
If your offer includes a bonus, especially if that bonus played a big part in you accepting the role, this is one of the first things you should pay attention to.
In the UAE, bonuses are almost always described as “discretionary” in the contract. That doesn’t automatically mean you’ll never get one, but it does mean your entitlement depends entirely on how the clause is written.
You should know:
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Is the bonus linked to anything measurable, or is it completely open-ended?
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Does the contract say when it’s paid?
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Do you have to still be employed on the payment date?
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What happens if you resign or are let go before bonus time?
If the wording is vague, the employer usually has the final say - and that can mean no bonus at all, even after a strong year.
2. Non-Compete Clauses - Often Too Broad
Non-compete clauses in UAE contracts often come as a shock. We regularly see restrictions up to 12 months, covering entire industries, regions, and sometimes even globally.
Before accepting it, ask yourself:
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Does this restriction actually relate to what I’ll be doing?
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Is it limited to a specific role or industry?
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Is the geography reasonable?
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Is the time period realistic?
A clause that’s too broad can make it very difficult to move to another role in the UAE if things don’t work out - even if you didn’t plan on leaving when you signed.
3. Probation Terms - Your Rights in the First 3–6 Months
Most UAE employment contracts include a probation period, usually up to 6 months. During this time, your employer can end the employment on much shorter notice, often around 14 days.
This is completely normal in the UAE, but many expats don’t realise how exposed they are during this phase.
Make sure you understand:
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How much notice applies during probation
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Whether probation can be extended (it can’t go beyond 6 months)
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When benefits actually start - immediately, or only after confirmation
We usually recommend you try to negotiate a shorter probation period (i.e. 3 months) and many employers accept this. It’s something very few expats think to ask for, but this small change can give you much more security early on.
4. End-of-Service Benefits - How Your Gratuity Is Calculated
In the UAE, when you leave a job, you’re entitled to an end-of-service payment called gratuity. What surprises many expats is how it’s calculated. Gratuity is based on your basic salary only, not your total package.
Employers often split salaries into:
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A lower “basic” salary
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The remainder paid as allowances (housing, transport, etc.)
This structure reduces the employer’s gratuity liability - which means you receive less when you leave.
You should be clear on:
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What percentage of your package is considered “basic”
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How gratuity increases over time
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Whether the structure can be changed later
This might not feel important on day one, but it can mean tens of thousands of dirhams difference later on.
5. Termination Clauses - How Easily Can the Contract End?
Most people don’t focus on termination clauses when starting a new role. But this controls how much protection you actually have if things change.
UAE labour law sets minimum standards, but your contract usually adds extra detail - and that detail often benefits the employer more than the employee.
Pay attention to:
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Whether the employer can terminate you more easily than you can resign
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Whether they can end the contract by paying you instead of giving notice
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Whether they can place you on garden leave
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What happens if termination occurs during probation
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How “performance issues” are defined (or not defined)
This all can affect your income, your timing, and your options - especially if the role ends earlier than expected.
6. Relocation & Allowance Clawbacks - What You Might Have to Pay Back
Many UAE roles come with attractive extras: relocation support, visa costs, flights, housing allowances, or settling-in payments.
Sometimes there’s a catch - UAE employment contracts can mention these benefits must be repaid if you leave within a certain period (even if you’re terminated!).
Check carefully:
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When repayment is triggered
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Whether the amount reduces over time
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Whether there’s a cap
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Whether the employer can deduct it from your final salary
It’s not uncommon for people to leave a role and discover they owe their employer money. Don’t let this be you.
Real Case Example: UK Executive Relocating to Dubai
We recently worked with a senior executive moving from London to join a Dubai-based tech company. On paper, the offer looked strong - but a closer look showed several red flags.
The draft included:
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Bonus wording that gave no real entitlement
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A 12-month non-compete applying globally
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A probation clause allowing termination on very short notice
As part of our contract review and negotiation support, we:
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Clarified bonus terms and tied them to objective performance criteria
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Narrowed the non-compete to six months and limited it to the relevant industry
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Balanced the notice periods so they applied fairly to both sides
The employer accepted the majority of the proposed changes, leaving our client with clearer rights, reduced risk, and far more certainty before relocating.
Many expats only discover issues after they’ve started, when the leverage is gone and options are limited. If you’re relocating or changing roles, getting advice on your contract before you sign can make a big difference.
At CASABADI, we help you:
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Spot risks you wouldn’t know to look for
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Understand how the wording actually works in practice
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Go into negotiations informed and prepared
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Protect your next move in the UAE market
