For employees working in the United Arab Emirates (UAE), contracts with limited terms are a common practice. These contracts often include a predetermined end date, which can create some uncertainty for employees when it comes time for termination.

Termination of a limited contract in the UAE can be challenging for employees, especially if they are not aware of their rights and the legal requirements surrounding the process.

What is a limited contract?

A limited contract is a type of employment agreement that outlines the terms and conditions of employment for a specific period. Typically, these contracts are issued for a period of two years, although they can be shorter or longer.

The agreement will specify the starting and ending dates of the contract and will outline the terms of employment, such as salary, benefits, working hours, and responsibilities.

Termination of a limited contract

When a limited contract in the UAE comes to an end, there are several things that employers and employees need to be aware of:

1. Notice period – Employers are required to give a notice period to employees before terminating a limited contract. The notice period depends on the length of service, as follows:

– Less than one year of service – one month`s notice

– Between one and five years of service – two months` notice

– Over five years of service – three months` notice

2. End of service benefits – When a limited contract ends, employees are entitled to end-of-service benefits, which includes a gratuity payment. This payment is calculated based on the length of service and the employee`s basic salary.

3. Visa cancellation – When a limited contract ends, employers are responsible for canceling the employee`s work visa. This process needs to be completed within 30 days of the contract`s termination.

4. Final settlement – Employers are required to settle any outstanding payments, such as unpaid salary, end-of-service benefits, and other entitlements owed to the employee.

Can a limited contract be terminated early?

In some cases, employers may terminate a limited contract before the end date. However, this can only be done under specific circumstances, such as:

– If the employee is found to be in violation of the contract`s terms and conditions

– If the employee is guilty of gross misconduct

– If the company is facing financial difficulties and needs to reduce its workforce

If an employer terminates a limited contract early without a valid reason, the employee may be entitled to compensation.

In conclusion, limited contracts are a common practice in the UAE, and employees need to be aware of their rights and the legal requirements surrounding the termination of these contracts. If you are an employee with a limited contract, make sure you understand your entitlements and seek legal advice if you have concerns or questions about the termination process.