ME-ALLIANCE LEGAL INSIGHT
The Conversion of Permanent Employment Contract to a Special Contract in Federal Entities
Clause 6 / Paragraph 1 of Federal Decree-Law No. (49) of 2022 regarding human resources in the federal government specifies the types of employment in federal entities which the employment in federal entities shall be subject to one of the following patterns:
A.Full Time
B.Part Time
C.Temporary Work
D.Flexible Work
It can be noticed that Clause 18 of Cabinet Decision No. (48) for the year 2023, regarding the Executive Regulations of Federal Decree-Law No. (49) for the year 2022 concerning Human Resources in the Federal Government, addresses a different mode of appointment—specifically, appointment based on special benefits. The clause 18 states that:
(In accordance with the matrix of powers and responsibilities approved by the Federal Entity, the Chairman of the Federal Entity or his deputy may appoint any experienced and competent people needed by the Federal Entity in accordance with the special benefits specified in Annex (6) attached to this Resolution, in any of the vacant senior positions (from the second grade to the special grade (A) or its equivalent), whether on fulltime, part-time, temporary basis, from the entity›s premises (on-site) or remotely, in accordance with the following provisions:)
In accordance with this clause, the individual to be appointed based on specific benefits is expected to come from outside the federal entity. This is due to the expertise needed by the federal entity, which may not be readily available within its existing personnel.
The question arising here is whether it is permissible to convert the contract of a permanent employee currently working in the federal entity to a special contract and appoint him based on specific benefits.
In other words, the individual intended for appointment based on specific benefits is an employee of the federal entity with a permanent contract. Due to certain considerations, the federal entity wishes to convert his contract from permanent to a special contract—appointing him based on specific benefits.
Clause 11 of the executive regulations’ states that:
(Based on the work exigency, and in accordance with the approved human resources procedures, the employer may change the employment option, type of work or contracting mechanism during the term of the contract or upon its termination, in accordance with the rules stipulated in this Resolution and within the financial allocations approved in the Entity›s budget)
Referring to clause (11) of the mentioned executive regulations, it is noted that it addresses the mechanism for changing the employment pattern or job type. The legislator has granted the federal entity the authority to modify the employment contract during its validity or upon its expiration by altering the employment pattern, job type, or contracting mechanism along with related benefits and wages. This modification is subject to the regulations outlined in the executive regulations, provided that it aligns with the interests of employment at the federal entity and complies with the financial allocations set by the federal entity. Additionally, it should be in accordance with the human resources procedures in place, as stipulated in clause (11) of the mentioned regulation.
Furthermore, the legislator has authorized the modification of contracts based on specific benefits by applying the provisions of clause (18) of the mentioned executive regulations. This aligns with the guidelines outlined in Annex No. (6), which details the Special Benefits Schedule related to the job grade.
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