What is Labour LIMITED Contract in UAE?

The professionals and laborers who get employment in UAE have to sign the employment contract that are of two type one is called limited contract and second is known as unlimited contract. Base on UAE labour laws both of these contracts have some differences especially in terms of Gratuity or end of service benefits. Both employees must acknowledge themselves with the nature of their employment contract employee must know his own rights provided by their respective contract lets go to further discuss about the today topic of understanding limited contracts in UAE.

limited contract means in uae

Limited means fixed or finite this contract is signed between employer and employee with the specific expiry date written on it. Means that after the expiry date the limited contract will be over and employee have to say good bey to his job but if the employer want them to continue he can make a new limited contract with new expiry date. Employer is responsible for all jobs benefits he gave to his employer in  period between start and expiry date. According to Ministry of Labor(MOL) UAE rules company must provide his employee a Gratuity which is calculated after some calculations.

Why to companies need Employees on Limited Contracts?

Companies and firms acquires professional and laborers on limited contract as they have to complete some projects they don’t need employees  to be permanent as the project has start and end date whenever the project is ended those employees who were on Limited contract their contract will also be ended. As companies don’t want those employees anymore they signed the contract with them when project start so that both of parties satisfied when the project is ended or limited contract of employee is over

What about employees?

Employees who want to do the job on limited contract must make themselves totally satisfied with rules and regulation written on contract document. As there are some major serious issues you can face in term of gratuity, leaves salary etc all of the rule must be clearly written on contract. If something is missing must ask them to enter them. Always must remember you rights and the rule provided by MOL UAE.

What if Employee want to Resign?

There are always an emergency problems and some other possibilities that make the employee to resign from the job having limited contract. If you don’t follow the rule of limited contract and resign before expiry period than must tell you employer that you want to resign with genuine reason. But if employee don’t care about to tell his employer he may have to face labour ban as well as has to pay 3 months of early termination compensation to employer.

Go the through Resignation rules under limited Contract in UAE

What if company/employer terminates the contract?

If something odd is happened in company they don’t want employee anymore than they cancel you limited contract but don’t worry they must have to pay you a 3 months compensation or the compensation of remaining period.

Some of contract clearly mention the rule of notice period that if employee want to left the company must contact his employer before 1 month or any other mention period on contract. And lastly must keep in mind that as you are a employee of company they must gives you a gratuity if you completed 1 year of complete service unfer contract.

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