Limited vs Unlimited Contracts
As mentioned in our last article, whilst Dubai lawyers might be familiar with UAE Labour Law, many residents and companies remain confused until they must defend their rights in court. A basic premise of UAE Labour Law we must all understand is the difference between a limited contract and an unlimited contract. In the article below we will look at the key points of an unlimited contract.
What is a Unlimited contract?
An unlimited contract for employment has a start date, but does not have a set duration or expiry date. A limited contract may become an unlimited contract if both the employer and employee continue the employment relationship after a limited contract has expired, but do not execute a new written agreement. Also, any unwritten employment contract is considered unlimited. (UAE Labour Law, Articles 39 & 40)
For an unlimited contract, either party may terminate employment by providing at least thirty days notice; however, the reason for termination must be valid and work-related to avoid possible penalties. (UAE Labour Law Articles 113 & 117)
So, an unlimited contract does not end unless either the employee or the employer gives notice.
Remember that hiring a law firm with qualified local advocates in Dubai who are familiar with Dubai law and UAE Labour Law can prevent costly mistakes. Contact Bar. Amaka Joy for more legal advice and free consultation.