What Is the Difference between Limited and Unlimited Contract
According to Federal Law No. 8 of 1980 on the Regulation of Industrial Relations and its amendments (“United Arab Emirates Labour Law”), employment contracts can be two types of “fixed-term contracts” and “open-ended contracts”. As the name suggests, fixed-term contracts are set for a specific duration, while open-ended contracts are of indefinite duration and do not specify a duration and end. 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 three months` salary or for the remaining term of the contract – whichever is less. A permanent contract is a contract of indefinite duration with a start date but no defined end date. This type of contract is generally considered more user-friendly. It provides a certain degree of flexibility for employers and employees. 4. How can an employee terminate a permanent contract? An employee may resign by notifying the employer of the contractual notice period (which, according to the employment contract, must be at least 30 calendar days or more). Alternatively, the employee may dismiss without notice in accordance with Article 121 of the Act. So I had a conversation with the company about the status of my employment contract. Apparently, the employment contract stated that I was under a LIMITED contract, as opposed to an UNLIMITED contract.
I didn`t sign the contract immediately because I wanted to talk to him about changing the terms. There are two types of employment contracts in the UAE: limited and unlimited. Therefore, it is important to know the difference between them, because each of them has its legal consequences. 3. How to terminate a permanent contract by an employer? Under the UAE Labour Code, there are two main ways for an employer to legally terminate a contract of indefinite duration: For a “valid” (i.e. performance-related) reason for termination (the UAE Labour Code provides for a minimum notice period of 30 calendar days). However, the parties have the right to agree on longer notice periods in the contract); or summarily (without notice or termination of absence) for one of the 11 comprehensive serious grounds for misconduct under articles 88 and 120 of the UAE Labour Code. He couldn`t believe I was thinking about other jobs when he hired me in “good faith.” He said he never expected me to look for work elsewhere. I had to answer that my problem with the VS job offer is the employment contract, because they were both different. But I also had to tell him that I play a big responsibility in my family who need me at home. – The contract can be terminated either by the employer or by the employee with a notice period of 30 days.
It is possible to extend this notification by mutual agreement. 4. How do I extend a fixed-term contract? A fixed-term contract may be extended with the consent of both parties. Alternatively, both parties could agree to convert the agreement into a permanent contract at the end of the current contract. According to article 113 of the Labour Code of the United Arab Emirates, an employment contract may be terminated in the following three cases: In these cases, the employer must not pay compensation to the employee. But in general, according to UAE labour law, in the event that the employer dismisses an employee, the remuneration must be based either on 3 months` salary or for the remaining duration of the contract; whichever is lower, unless otherwise agreed by contract. 2. When is it appropriate to use a fixed-term contract? Fixed-term contracts are useful for project-based employees if the duration of those projects is known in advance.
What is a fixed-term contract? in accordance with article 38 of the Labour Code; There are several reasons to terminate a contract without notice under UAE labour law: 1. What are fixed-term contracts? A fixed-term contract is a fixed-term contract that is usually tied to the duration of the employee`s residency visa for the UAE (i.e. two or three years, depending on the location of the employer). It ends automatically at the end of the term, unless it is renewed by one of the parties or, on the contrary, terminated earlier. I didn`t want to argue anymore and just agreed to sign the employment contract. I also didn`t want to create so much conflict with my employer, because I still work for them. 2. When is it appropriate to use an open-ended contract? Contracts of unlimited duration are generally considered to be more flexible than fixed-term contracts. For this reason, an open-ended contract is more commonly used in the UAE than a fixed-term contract. It should be used for employees who should be employed on a permanent basis and not project-based. According to the Labour Act No. 8 of the United Arab Emirates 1980 (as amended) [the “United Arab Emirates Labour Code”), which applies to all employers in the United Arab Emirates (except those under the jurisdiction of 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.
Below, we have described the different differences between the two types of contracts, including the legal right to terminate the service and the consequences of termination. We first spoke on the phone and I told him about my problems with the employment contract. It went so far that I told him about other opportunities outside of my job. There may be other offers from other companies with better job packages during the 2-year period. That`s when my employer got angry. – If the contract is not renewed, it will be automatically terminated when it expires; 3. How can a fixed-term contract be terminated? Fixed-term contracts usually have no termination clauses and simply expire on the specified date at the end of the term (unless terminated prematurely by one of the parties). Dismissal without notice by the employer is permitted on the basis of one of the 11 comprehensive grounds provided for in articles 88 and 120 of the Labour Code of the United Arab Emirates. An employee may validly terminate the contract before the expiry of the contract in accordance with Article 121 of the Act. Termination of a contract of indefinite duration The contract may be terminated either by the employer or by the employee provided that the contractual notice period, generally set at 30 days, is respected. The employer may terminate a contract of indefinite duration without notice if the employee violates Article 120 of the Labour Code of the United Arab Emirates. The employee may terminate the contract without notice if the employer fails to comply with its obligations under Article 121 of the UAE Labour Code.
A contract of indefinite duration may be terminated at any time by the employer or by the employee after 30 days` notice. An extension of the notice period of up to three months is also possible by mutual agreement between the two parties. 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 because I`ll still have an AUTOMATIC work ban for 6 months. Besides, I`m not that unhappy in my job. I just hoped that if there was another opportunity coming in 2 years, there was a chance that I would take it. Because let`s face it, expats in Dubai are in this city to find work. A fixed-term contract may be terminated at the choice of the employer or worker in accordance with Article 113 referred to above; or What is a permanent contract? In accordance with article 39 of the Labour Code; An employment contract is considered to be a contract of indefinite duration if it is concluded for an indefinite period. Simply put, a permanent employment contract is a contract with no set expiration date.
(1) If the employer fails to fulfil his obligations to the employee under the contract or this Act. He explained to me that they can always renew/employ me in their company after the contract expires (2 years). In addition, an employer may immediately and without notice dismiss an employee who has a fixed-term contract if one of the grounds for dismissal set forth in article 120 of the Labour Code of the United Arab Emirates occurs. Article 120 of the UAE Labour Code lists the following ten reasons: The difference between the LIMITED contract and the UNLIMITED contract is not that great. But knowing that the agreement in my employer`s job offer letter I signed was for an unlimited period of time, I didn`t feel comfortable accepting the employment contract that was presented to me. It is important to note that an employee who has not completed one year of continuous service is not entitled to a bonus. This rule applies regardless of whether the employee has a fixed-term or open-ended contract. Here`s how the two contracts differ in calculating tipping: Termination of a fixed-term contract If an employer dismisses an employee for reasons other than those specified in article 120 of the Labour Code of the United Arab Emirates, the employer is obliged to compensate the employee for three months` gross salary or for the remainder of the contract period; whichever is lower.
If the employee wishes to terminate the contract for reasons other than those specified in article 121 of the Labour Code of the United Arab Emirates, he is obliged to pay the employer 6 weeks` gross salary or for the remaining duration of the contract; whichever is lower. – A limited liability contract has a start date and an end date; However, living in a foreign country also comes with basic responsibilities.
