Employees may find themselves in a situation where they need to resign from their job.
The question that arises is, Can I resign in unlimited contract? This article aims to provide a comprehensive answer to this question by exploring the types of contracts in the UAE, how to terminate them, and end-of-service calculations.
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Can I Resign in Unlimited Contract?
The answer is yes. Under an unlimited contract, an employee can resign by providing a notice period. The notice period should be at least 30 calendar days and a maximum of three months. However, an unlimited contract resignation does not compensate for early termination.
Types of Contracts in the UAE.
According to the UAE Labour Law, there are two types of contracts: limited and unlimited contracts. Limited contracts have an expiry date and are for a specific duration.
On the other hand, unlimited contracts are open-ended and do not have an expiry date. However, an employer or an employee can terminate the contract with a valid reason.
How to Terminate a Contract?
For limited contract resignation, both parties must consider the compensation for early termination. An employee can resign by providing written notice; the notice period cannot be less than one month and not more than three months.
However, an employee can resign during probation. Still, they must provide a notice period that varies depending on whether they are leaving the UAE or starting another job there.
For unlimited contract resignation UAE, the employee should provide a notice period of a minimum of 30 days and a maximum of three months. The employer can terminate the contract by providing a notice period or monetary compensation.
However, an employer may terminate the contract without notice in specific cases.
End-of-service calculations refer to gratuity pay, also known as end-of-service benefits. For foreign employees, the gratuity pay depends on the years of service.
Employees who have worked for over a year but under five years are entitled to 21 days of salary for each year worked.
Employees who have worked for more than five years are entitled to 30 days of salary for each year worked following the first five years. However, the gratuity pay cannot exceed two years of wage.
FAQs about resigning in an unlimited contract.
- Employees can resign in unlimited contracts by providing a notice period. Therefore, if you are an employee in an unlimited contract position and are wondering, Can I resign in unlimited contract? the answer is yes.
- Following the due process for terminating both limited and unlimited contracts is important.
- End-of-service calculations depend on the years of service, and it is crucial to understand the contract’s provisions.
- Younis Mohammed Al Blooshi Labour Lawyer & Legal Consultant is the best for labour contract cases in the UAE. By understanding the UAE Labour Law, employees can work in compliance and ensure a smooth termination process.
Contact the office of Younis Mohammed Al Blooshi via Whatsapp. Click here. Or visit us at our address: Sobha Ivory 1 – Al Amal St – Business Bay – Dubai. You can also call us on phone: 00971589984123.
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.