Following recent reforms of the UAE`s labour market, fixed-term contracts have a maximum duration of 2 years, compared to 4 years previously. The contract must also include a termination. 3. How can a fixed-term contract be terminated? Fixed-term contracts generally do not contain a notice period and simply expire on the specified date for the end of the term (unless they are terminated earlier by one of the parties). Summary dismissal by the employer is permitted on the basis of one of the 11 exhaustive grounds provided for in Articles 88 and 120 of the United Arab Emirates Labour Code. An employee may effectively terminate the contract in accordance with Article 121 of the Act before the expiry of the contract. According to the Water Labor Code No. 8 of 1980 (as amended) (the „United Arab Emirates Labour Code“), which applies to all employers in the United Arab Emirates (with the exception of those established at the Dubai International Financial Centre („DIFC“), there are two types of employment contracts that employers may issue to employees; fixed-term or open-ended contracts. 8. How is the „end-of-service bonus“ calculated under a fixed-term contract if an employer terminates the contract? An employee who has completed one or more years of uninterrupted service is entitled to remuneration at the end of service, calculated as follows: 21 calendar days of basic salary for each year of the first five years of service. 30 calendar days of base salary for each additional year. Provided that the total remuneration does not exceed two annual salaries.
An employee is not entitled to tips at the end of the service if he or she has been summarily dismissed for serious misconduct in accordance with the provisions of the United Arab Emirates Labour Law. The two contracts differ from each other in terms of claims and legal rights. Employee contracts have been electronic since July 2014. Here is a definition of both treaties. Let`s start by understanding the limited contracts of employees. Under this new system, part-time workers can accept multiple part-time jobs without the consent of the original employer or another secondary employer; however, they are required to obtain authorization from the Ministry of Education and Training. The part-time contract can only be converted into a regular contract at the end of the part-time employment contract. It is important to note that an employee who has not completed a year of uninterrupted service is not entitled to a tip. This rule applies regardless of whether the employee has a limited or open-ended contract. Here`s how the two contracts differ when it comes to tipping: However, living in a foreign country also carries the underlying responsibilities. The UAE is known to have strict rules.
As an expat, you are expected to know the laws and abide by them. Since most foreigners in the UAE come as job seekers and aspiring entrepreneurs, it is important to know the main differences between fixed-term and open-ended contracts. According to the Water Labor Code, a fixed-term employment contract must stipulate at least the following: Although the contract details we have provided above with respect to limited and unlimited employee contracts are the same in all UAE, please keep in mind that there may be minor changes depending on the type of business you operate in. I hope this helps you understand the main differences between a limited employment contract and an unlimited employment contract. We met and he explained the details of the job offer letter to me. He told me that I had been misled by the offer contained in the contractual clause. The letter of offer stated: „The contract is valid for an UNLIMITED PERIOD.“ If you do not comply with the rules and regulations of the contract, you may receive an automatic work ban from the United Arab Emirates for six months. Your employer can also suspend you for six months for the same reasons. These contracts are not transferable, which means that an employee cannot be transferred to other companies as part of your contract. This type of contract allows you to be transferred to other companies as long as your salary is at least 5000 dirhams and you have a high school diploma.
This means that if you find another job that gives you a better salary, you can take that job. You are also eligible to work in a free zone company or in a state-owned enterprise. A contract of indefinite duration is open, more flexible and is widely used in the United Arab Emirates. It can be terminated by mutual agreement or with 1 to 3 months` notice. The parties concerned must comply with their obligations throughout the notice period. A contract of indefinite duration is a type of perpetual contract with a start date but no defined end date. This type of contract is generally considered to be more user-friendly. It offers a certain degree of flexibility to employers and employees.
The part-time contract is subject to the same rules and penalties that apply to regular employment contracts usual in the United Arab Emirates: limited or unlimited. An employment contract is the ultimate proof of the terms of the agreement between an employer and an employee. Therefore, it must be taken seriously and must be followed throughout the period of employment. A fixed-term employment contract is also called a fixed-term contract. It clearly defines the start and end dates of the employment regime and has a maximum duration of four years. It is often associated with the duration of the residence visa of the person concerned in the United Arab Emirates. It may also change depending on the location of the employer. We first spoke on the phone and I told him about my problems with the employment contract. It came to a point where I told him about other possibilities outside of my job. There may be other offers from other companies with better employment packages within the 2-year period. That`s when my employer got angry. The reason this is a problem for me is that before, in the job offer letter they gave me, it was said that the contract was valid for an unlimited period.
A fixed-term contract may, at the choice of the employer or employee, be mutually terminated in accordance with the above-mentioned provisions of Article 113; or These contracts are accepted when an employer needs to hire employees for certain projects or a certain duration. In the meantime, I just need to have more TIYAGA (PATIENCE/PERSEVERANCE) than any Filipino tells me when I share my story. Add it with „Magpasalamat ka na lang may trabaho ka… (Just be grateful for a job.) Fixed-term contracts generally do not have a notice period and simply expire at the end of the term or on the date specified in the contract (unless they terminate them earlier by one of the parties – see answers to questions 5 and 6 below). .
