When it comes to working in the United Arab Emirates (UAE), understanding the labour laws and regulations is essential for both employers and employees. For those on a limited contract, there are specific rules that they need to be aware of.
First and foremost, a limited contract is an employment agreement that sets a specific end date for the contract. Unlike an unlimited contract, which has no end date and can be terminated by either party with notice, a limited contract can only be terminated if both parties agree or if the contract expires.
Under UAE labour laws, a limited contract can be signed for a maximum of two years. However, it is important to note that if an employee completes two consecutive limited contracts with the same employer, they are then entitled to an unlimited contract.
One of the key considerations for employees on limited contracts is their entitlement to end-of-service benefits. These benefits are calculated based on the length of service and the employee`s last salary, and are payable when the contract expires or is terminated. If an employee resigns before the end of their contract, they may forfeit all or part of their end-of-service benefits.
Another important aspect of UAE labour laws for limited contracts is the notice period. If an employer wishes to terminate a limited contract before the end date, they must provide the employee with notice in writing at least 30 days before the termination date. Similarly, if an employee wishes to resign before the end of their contract, they must provide their employer with at least 30 days` notice.
It is also worth noting that there are restrictions on changing jobs for employees on limited contracts. Under UAE law, an employee on a limited contract is not permitted to work for another employer without the consent of their current employer. If an employee wishes to change jobs, they must obtain a „No-Objection Certificate“ from their current employer.
Finally, it is important to seek legal advice if there are any disputes between employers and employees regarding limited contracts. The UAE has a comprehensive system for labour dispute resolution, including the Ministry of Human Resources and Emiratisation and the labour courts.
In conclusion, understanding the labour laws for limited contracts is essential for anyone working in the UAE. Employers and employees alike must be aware of their rights and obligations under these regulations to ensure a fair and transparent working relationship.