The UAE Labour Law is a comprehensive framework that regulates the relationship between employers and employees in the country. It provides guidelines for various aspects of employment, including termination of employment contracts.
There are specific provisions that govern the UAE labour law termination limited contract, this article will explore them.
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UAE labour law termination limited contract.
A limited contract in the UAE is an employment contract with a specified term, typically not exceeding four years.
The contract outlines the start and end date of the employment and the terms and conditions of employment during the specified term. Limited contracts are commonly used for employees in construction, hospitality, and oil and gas industries.
Termination of Limited Contract by Employer.
The UAE Labour Law allows employers to terminate a limited contract before its expiry date under certain circumstances.
The employer may terminate the contract if the employee violates the terms of the contract or commits a serious offence at the workplace.
In such cases, the employer must provide the employee with a written notice of termination and pay the employee compensation per the contract’s terms.
If the employer terminates the contract without a valid reason, the employee may be entitled to compensation, including end-of-service benefits.
Termination of Limited Contract by Employee.
Employees in the UAE may also terminate a limited contract before its expiry date under certain circumstances.
If the employer fails to fulfil the terms of the contract, assigns the employee work outside the scope of the contract, or violates the Labour Law, the employee may terminate the contract without notice. In such cases, the employee is entitled to compensation per the contract terms.
Benefits of Termination of Limited Contract.
Termination of a limited contract can have benefits for both employers and employees. For employers, it allows them to adjust their workforce as per the needs of the business without being locked into long-term employment commitments.
For employees, it allows them to seek new employment opportunities or negotiate better terms with their current employer.
Limited Contract Termination Gratuity Calculation.
The calculation of gratuity for terminating a limited contract in the UAE is based on the length of service and the contract terms. Employees who have completed less than one year of service are not entitled to gratuity.
For employees who have completed more than one year of service, the gratuity amount is calculated as three weeks of basic salary for each year of service.
FAQs about UAE labour law termination limited contract.
In conclusion, the UAE Labour Law provides clear guidelines for terminating limited contracts.
Employers and employees must understand the provisions related to limited contract termination to ensure that the process is carried out in accordance with the law.
In case of any disputes related to limited contract termination, Younis Mohammed Al Blooshi Labour Lawyer & Legal Consultant is the best option for legal consultation and representation in the UAE.
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.