What is limited contract in UAE?
A limited contract is an employment agreement valid for a specific period, usually no longer than three years.
In this article, we will look at a limited contract in the UAE, its legal stipulations, and the rights and obligations of both the employer and the employee.
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Table of Contents
What is limited contract in UAE?
In the UAE, a limited contract is a type of employment agreement valid for a specific period.
As per the law, these limited contracts should be no longer than three years and can be renewed for a similar or shorter period if both parties agree.
Employment Relationship Limited Contract.
Under Article 16(1) of the UAE Labour Law, the worker must perform the work themselves per the contract and not outsource it to any other entity.
Additionally, suppose the work assigned to the worker allows them to access the employer’s clients or learn about their work secrets.
In that case, they must not work on any competing project in the same sector for two years after the termination of the contract, as per Article 10(1) of the UAE labour law.
According to Article 17(1) of the UAE Labour Law, the employee must work under normal hours, eight hours per day or 48 hours per week.
For those wondering what is limited contract in UAE, workers under a limited contract in the UAE have certain rights that must be upheld.
These include entitlement to an off with full pay on public holidays as defined by the UAE Cabinet and annual leave with full pay of not less than 30 days for each year of service.
Female employees are also entitled to maternity leave of 60 days as per the UAE Labour Law.
Fixed-Term Contract Expiry.
When a limited contract expires, the employer is obliged to give a certificate of experience to the worker without any charges, as per Article 13(11) of the UAE Labour Law.
The certificate must include various details such as the date of employment, end-date of contract, job title, type of work, last wage the employee received, and reason for the termination of the contract.
The certificate must not include anything that could jeopardize a worker’s chances of finding a new job. The validity of the notice period in case of termination during the leave is explained in Article 35 of the UAE Labour Law.
FAQs about limited contracts in UAE.
Conclusion.
In conclusion, for those wondering what is limited contract in UAE, it is a type of employment agreement valid for a specific time period.
Both employers and employees must abide by the legal stipulations outlined in the UAE Labour Law and seek the guidance of a labour lawyer and legal consultant.
Al Mulla Labor Lawyer & Legal Consultant is advisable in case of any legal issues related to limited contracts.
Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.
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A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.