What Is the Difference between Limited Contract and Unlimited Contract in Uae

An employee is not entitled to a tip at the end of service if he resigns with less than 5 years of service. If he has worked more than 5 years of service, he is entitled to the same remuneration at the end of the period of service, as if he had resigned with a contract of indefinite duration (see the answer to question 16 below). Under the United Arab Emirates Labour Code No. 8 of 1980 (as amended) (the "UAE Labour Code"), which applies to all employers in the United Arab Emirates (with the exception of those established at the Dubai International Financial Centre ("DIFC"), there are two types of employment contracts that employers can issue to employees; fixed-term or open-ended contracts. Under the part-time contract, the original employer says: What I am complaining about is the difference between the letter of offer and how misleading it was in relation to 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. 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. Following recent reforms of the UAE`s labour market, fixed-term contracts have a maximum duration of 2 years, compared to 4 years previously.

The contract must also include a termination. There are several differences between the two types of contracts, including the treatment of the legal right to tip at the end of the service period and the consequences of termination. These fixed-term contracts are usually concluded when an employer wants to hire someone to work on specific projects or commitments that are limited in time. 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. 7. What happens if the fixed-term contract contains a notice period? If the contract contains provisions on a notice period, this provision must be made available to the other party in addition to any early termination compensation due.

A fixed-term contract is a fixed-term contract. It has a specified start and end date of up to four years. Employers and employees may mutually agree to extend the contract at the end of the fixed term. However, if the contract is not renewed, it will be automatically terminated on the specified end date. I am grateful to have a job in Dubai as I can read other Pinoys who are struggling to find work in the UAE. Also, I know that depending on what everyone is going through, I just need to gain experience so that I can present a better resume when I apply for other jobs after my contract expires. The reason this is a problem for me is that before, in the job offer letter they gave me, it was said that the contract was valid for an unlimited period. So I had a discussion with the company about the status of my employment contract. Apparently, the employment contract stated that I am under a LIMITED contract as opposed to an UNLIMITED contract. I didn`t sign the contract right away because I wanted to talk to him about changing the terms. According to Article 113 of the UAE Labour Code, an employment contract can be terminated in the following three cases: It is important to note that an employee who has not completed a year of uninterrupted service is not entitled to a tip. This rule applies regardless of whether the employee has a limited or open-ended contract.

Here`s how the two contracts differ in tipping: He couldn`t believe I was thinking about other jobs when he hired me in "good faith." He said he didn`t expect me to expect me to look for work elsewhere. I had to answer that my problem with the VS job offer is the employment contract, as they were both different. But I also had to tell him that I have a great responsibility in my family who need me at home. 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). I haven`t really read all the details, but the main difference between the two, as far as I do some research, is this: open-ended contracts are generally considered more flexible and user-friendly than fixed-term contracts. For this reason, a contract of indefinite duration is more commonly used in the United Arab Emirates than a contract of limited duration. It can be used for employees who are supposed to be permanent and do not do project work (if the duration of the project is known in advance). A contract of indefinite duration is open, more flexible and is widely used in the United Arab Emirates. It can be terminated by mutual agreement or with 1 to 3 months` notice. The parties concerned must comply with their obligations throughout the notice period. In accordance with Article 116, a worker who terminates a contract for reasons other than those referred to in Article 121 shall compensate the employer for the resulting damage.

This amount of compensation does not exceed half a month`s salary for 3 months or for the remaining duration of the contract, whichever is shorter, unless otherwise specified in the contract. If the employer terminates a fixed-term contract before the end date and for reasons not listed in Article 120 of the UAE Labour Code, the employer is obliged to compensate the employee with a salary of three months or for the remaining duration of the contract – whichever is lower. 2. When is it appropriate to use a fixed-term contract? Fixed-term contracts are useful for project-based employees if the duration of these projects is known in advance. An employee can terminate by giving the employer the contractual notice period (which, according to the employment contract, must be at least 30 calendar days or more). When an employee resigns from a permanent contract, he is entitled to a tip for the end of service on the following sliding scale: I think employers can be very smart, especially when it comes to work issues. .