What Is Limited and Unlimited Contract in Dubai
Although the contract details we have provided above with respect to limited and unlimited employee contracts are the same across all UAE, please keep in mind that there may be minor changes depending on the type of business you operate in. I hope this helps you understand the main differences between a limited employment contract and an unlimited employment contract. As the name suggests, a fixed-term contract is a type of employment contract valid for a short period. It begins and ends on the dates indicated, unless it is renewed by the employer. A contract of indefinite duration is permanent and may be terminated for various reasons under the United Arab Emirates Labour Code (see answer to questions 13 and 14 below). A permanent contract can be terminated at any time by the employer or employee with 30 days` notice. A notice period not exceeding three months is also possible by mutual agreement between the two parties. There are some differences between the limited contract and the unlimited contract in the United Arab Emirates. A fixed-term contract is a fixed-term contract and usually depends on the duration of the UAE residency visa (i.e. two or three years, depending on the employer`s location). It terminates automatically at the end of the term, unless it is terminated earlier by one of the parties or renewed by both parties.
The part-time contract can only be converted into a regular contract at the end of the part-time employment contract. Unless otherwise provided in the employment contract, if the employee wishes to terminate the fixed-term contract before the end of the period, the UAE Labour Code requires the employee to pay the employer an ”early termination indemnity” equal to half of the three months` remuneration, including salary and allowances, or half the remuneration for the remaining period if the contract lasts less than three months. In addition, an employer may immediately dismiss an employee who has a fixed-term contract without setting a notice period if one of the grounds for dismissal referred to in clause 120 of the UAE Labour Code occurs. Article 120 of the UAE Labour Code gives the following ten reasons: Under the part-time contract, the original employer carries: These contracts are accepted when an employer has to hire employees for certain projects or a certain duration. A fixed-term employment contract must mention the following points: This concludes our guide to fixed-term contracts in the United Arab Emirates. The work processes in the country are quite smooth, thanks to MOHRE and its Tasheel online system. If you have problems with your employment contract or your employer`s conduct, you can always file a complaint with MOHRE. The organization strives to empower employees and employers in the UAE. An employment contract of indefinite duration derived from his name means that he does not have a fixed date.
To put it simply, it has a start day, but it doesn`t have an end day. Fixed-term contracts are useful when an employer needs to hire employees for specific projects and the duration of those projects is known in advance. We first spoke on the phone and I told him about my problems with the employment contract. It came to a point where I told him about other possibilities outside of my job. There may be other offers from other companies with better employment packages within the 2-year period. That`s when my employer got angry. According to the UAE Labour Code, there are two main ways for an employer to legally terminate a contract of indefinite duration: it should be noted that if, as an employee, you voluntarily terminate for free reasons not mentioned in Article 121 of the UAE Labour Code, you will be obliged to compensate your employer. The employee must make a payment of 45 days` pay or the remaining duration of the contract in question, whichever is shorter. What I am complaining about is the difference between the letter of offer and how misleading it was about the employment contract.
I couldn`t say I wouldn`t sign it as I will still have an AUTOMATIC work ban for 6 months. Besides, I`m not so unhappy in my work. I was just hoping that if there was another opportunity that presented itself in 2 years, there was a chance that I would seize it. Because let`s face it, expats in Dubai are in this city to find work. This type of contract allows you to be transferred to other companies as long as your salary is at least 5000 dirhams and you have a high school diploma. This means that if you find another job that gives you a better salary, you can take that job. You are also eligible to work in a free zone company or in a state-owned enterprise. A fixed-term employment contract is also called a fixed-term contract. It clearly defines the start and end dates of the employment regime and has a maximum duration of four years. It is often associated with the duration of the residence visa of the person concerned in the United Arab Emirates. It may also change depending on the location of the employer.
According to the Federal Industrial Relations Regulation and Amendment Act No. 8 of 1980 (”United Arab Emirates Labour Law”), employment contracts may be of two types of ”fixed-term contracts” and ”contracts of indefinite duration”. As the name suggests, fixed-term contracts are set for a certain duration, while open-ended contracts are of indefinite duration and do not specify or terminate a duration. If the termination is provided for in a fixed-term contract, it must be made available to the other party in addition to an early termination fee due.