Contract templates in Yemen: the rules to know

• Permanent employment contract

  Hiring for a permanent position

  For a Yemeni worker, the contract is deemed open-ended; probation is capped at six months.

  • For a Yemeni worker, the contract is deemed open-ended; a term may only be set by mutual agreement (art. 29).
  • The contract must state at least the wage, the nature and place of work, the start date and the duration (art. 30).
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• Fixed-term employment contract

  Assignment or replacement with an end date

  The Labour Code (Law No. 5 of 1995) requires the express agreement of both parties for a fixed-term contract; otherwise a Yemeni's contract is open-ended.

  • A fixed-term contract requires the express agreement of both parties; otherwise a Yemeni's contract is open-ended (art. 29).
  • If the relationship continues after the end date, the contract is deemed renewed for the same period as the previous one (art. 29).
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• Internship agreement

  Internships and first-job schemes

  General contract law applies; rules specific to this contract remain to be confirmed. As authorities are split, this information relies on national laws in force before 2015.

  • Workers keep their basic wage during training approved by the employer, in Yemen or abroad (Labour Law, art. 58).
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• Resignation letter

  Leaving a job properly

  In Yemen, the law does not name resignation: the employee ends the contract by giving notice. As authorities are split, this information relies on national laws in force before 2015.

  • The law does not name resignation; ending an open-ended contract follows the notice rules (arts. 36 and 38).
  • Notice: 30 days (monthly pay), 15 days (half-monthly pay), one week (piece, hourly, daily or weekly pay) (art. 38).
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• Service agreement

  Work carried out for a client

  The service agreement falls under the contract for work (muqawala) of the Yemeni Civil Code (Law No. 14 of 2002).

  • The contract for work (muqawala) is one under which the contractor undertakes to make a thing or perform work for a price (art. 874).
  • The work must conform to the contract; where a defect can be repaired, the client may require correction within a reasonable time (art. 878).
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• Agreement between two parties

  Mutual commitments in writing

  The Civil Code (Law No. 14 of 2002) and the Law of Evidence (Law No. 21 of 1992) govern the agreement: formed by offer and acceptance, with no prescribed wording.

  • Contracts and clauses are presumed valid until their nullity is proved, unless they make the forbidden lawful or the lawful forbidden (Civil Code, arts. 13, 14).
  • A contract is formed by offer and acceptance with no prescribed wording; only proof of mutual consent matters (art. 138).
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• Freelance contract

  Independent professional and client

  In Yemen, the Civil Code (Law No. 14 of 2002) imposes no form; if reclassified as employment, the relationship falls under the Labour Law (Law No. 5 of 1995).

  • If reclassified as an employment contract, it would be open-ended for a Yemeni national and give rise to notice and the indemnity under Art. 39.
  • Electronic signatures are possible and have the effect of handwritten ones (Law No. 40 of 2006, Arts. 10, 13), subject to authentication procedures (Arts. 32 to 34).
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• Non-disclosure agreement (NDA)

  Sharing sensitive information

  In Yemen, the Civil Code (Law No. 14 of 2002) sets the framework applicable to confidentiality clauses.

  • Confidentiality clauses are presumed valid as long as they do not contradict Sharia (Civil Code, Articles 13 and 14).
  • Define precisely the protected information, the duration of the obligation and the sanction for disclosure.
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• Partnership agreement

  Joint project between companies

  A cooperation agreement that creates no company is an unnamed contract governed by the Civil Code, which also regulates the mudaraba.

  • A cooperation agreement that creates no company is an unnamed contract governed by the general rules of the Civil Code (arts. 13, 138).
  • The Civil Code regulates the mudaraba: one party provides capital, the other provides work, in return for a share of profit in a known proportion (art. 841).
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• Sale of goods

  Selling goods and movable property

  In Yemen, authority is divided; the rules below rely on national laws in force before 2015, including Consumer Protection Law No. 46 of 2008.

  • Consumers: defect found within ten days of purchase, refund or replacement, except perishable goods and misuse (Law No. 46 of 2008, art. 15).
  • The supplier warrants quality and hidden defects; a clause excluding the warranty is void, except for used goods (art. 14).
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• Influencer agreement

  Brand and creator collaboration

  General contract law applies; rules specific to this contract remain to be confirmed. As authorities are split, this information relies on national laws in force before 2015.

  • Advertisers must not publish any misleading advertising on the nature, origin, price or terms of a product or service (Law No. 46 of 2008, Art. 19).
  • Electronic signatures are accepted if authenticated (Law No. 40 of 2006, Art. 33); otherwise they have no evidential value.
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• Residential lease

  Renting a home

  In Yemen, the Civil Code rules (Law No. 14 of 2002) on built premises apply to dwellings.

  • The Civil Code rules on built premises apply to dwellings (art. 718); the term and the rent must be set when the lease is concluded (art. 743).
  • If no rent is set, the market rent applies (art. 720); it is payable monthly in advance unless agreed otherwise (art. 721).
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• Commercial lease

  Renting business premises

  In Yemen, Law No. 22 of 2006 covers shops, workshops, warehouses and agencies; as authorities have been split since 2015, the rules shown are those of national laws in force before that date.

  • Where no term is stated: five years for shops, pharmacies, agencies, restaurants and hotels; ten years for factories, workshops and banks (art. 28).
  • The lease ends at its term without separate notice, unless otherwise agreed (art. 78); staying on without the landlord's objection renews it on the same terms (art. 79).
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• Acknowledgment of debt

  Money lent between individuals

  In Yemen, a debtor's admission interrupts limitation and cannot be withdrawn without the beneficiary's consent.

  • A debtor's admission, express or tacit, interrupts the limitation period (Civil Code, art. 446).
  • Waiving a limitation period already acquired amounts to acknowledging the debt (art. 449).
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• Car sale agreement

  Selling a used vehicle

  The Civil Code governs sale and the warranty for defects; the transfer of the vehicle licence falls under road traffic legislation.

  • A sale may be concluded orally, in writing or by gestures (art. 452); if the transfer requires registration, the seller must complete it (art. 527).
  • The seller warrants defects that reduce the value, even if unaware of them (art. 546); the buyer must report them within a reasonable time (art. 547).
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• Power of attorney

  Acting on someone else's behalf

  Authorities in Yemen are split; this information relies on national laws in force before 2015, including the notarisation law.

  • Notarisation covers certifying the parties' signatures or thumbprints; the notary certifies signatures on private deeds (art. 2 and 9).
  • The licensed "amin" drafts powers of attorney (art. 10); their deeds only gain notarial force once registered with the court's notarisation office (art. 25).
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