These fixed-term contracts are usually concluded when an employer wants to hire someone to work on specific projects or commitments that are limited in time. There are some differences between the limited contract and the unlimited contract in the United Arab Emirates. The part-time contract can only be converted into a regular contract at the end of the part-time employment contract. In addition, an employer may immediately dismiss an employee who has a fixed-term contract without setting a notice period if one of the grounds for dismissal referred to in clause 120 of the UAE Labour Code occurs. Article 120 of the UAE Labour Code gives the following ten reasons: A contract of indefinite duration is of indefinite duration and can be terminated for various reasons under the UAE Labour Code (see the answer to questions 13 and 14 below). 4. How can a permanent contract be terminated by an employee? An employee can terminate by giving the employer the contractual notice period (which, according to the employment contract, must be at least 30 calendar days or more). Alternatively, the employee may dismiss without notice in accordance with section 121 of the Act. Under the UAE Labour Code, there are two main ways for an employer to legally terminate a contract of indefinite duration: under Article 120 of the UAE Labour Code, the employer may dismiss an employee without notice under a fixed-term contract in the following circumstances: under this new system, part-time workers may hold multiple part-time jobs without the consent of the original employer or other secondary employers; however, they are required to obtain authorization from the Ministry of Education and Training.
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). In the United Arab Emirates, termination of the contract often occurs in various cases. Without knowledge of the rules, terminating a contract can lead to certain consequences. Here`s an idea: Whether an employee or employer terminates an extended fixed-term contract, the terminating party must: In 2018, the Ministry of Human Resources and Emiratization (MoHRE) introduced a new rule that allows companies to hire professionals from home or abroad under a multi-employer contract (part-time contract). This type of contract is limited only to skilled workers, i.e. holders of a university degree or higher and those who have obtained a two- or three-year degree in a technical or scientific field. These contracts are accepted when an employer needs to hire employees for certain projects or a certain duration. If an employee with a fixed-term contract is dismissed without notice for reasons other than those set out in Article 120 of the UAE Labour Code, he or she will be subject to either 3 months` salary or salary for the remaining period of employment. However, under section 117, the employer or employee may terminate a contract of indefinite duration for any valid reason at any time after its conclusion by informing the other party in writing at least 30 days before termination. The Labour Code exists to protect the rights of workers, employers and employees in the United Arab Emirates. It is important that you know the difference between fixed-term contracts and open-ended contracts.
An employment contract is what legally binds them to each other. As a future employer, you are responsible not only to your employees, but also to your professional obligations. If the employer terminates a fixed-term contract before the end date and for reasons not listed in Article 120 of the UAE Labour Code, the employer is obliged to compensate the employee with a salary of three months or for the remaining duration of the contract – whichever is lower. 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 contract shall be terminated under the following conditions: a fixed-term contract may, at the choice of the employer or employee, be terminated by mutual agreement in accordance with the above provisions of Article 113; or open-ended contracts are generally considered to be more flexible and user-friendly than fixed-term contracts. For this reason, a contract of indefinite duration is more commonly used in the United Arab Emirates than a contract of limited duration. It can be used for employees who are supposed to be permanent and do not do project work (if the duration of the project is known in advance).
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. An employee can terminate by giving the employer the contractual notice period (which, according to the employment contract, must be at least 30 calendar days or more). Newcomers to Dubai should note that the Ministry of Human Resources and Emiratization (MOHRE) awards two types of employment contracts to those who work in private sector companies: limited and unlimited. Here you will find a comprehensive overview of fixed-term contracts in the UAE and the legal provisions and claims under this type of employment contract. As the name suggests, a fixed-term contract is a type of employment contract valid for a short period. It begins and ends on the dates indicated, unless it is renewed by the employer. 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.
Under the UAE Labour Code, an employee is entitled to an „early termination indemnity“ of at least three months` compensation, including salary and compensation, (or the remainder of the contract term if the remaining term is less than three months) if an employer wishes to terminate the contract before the end of the limited term. . . .