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Characteristic of a Limited Contract

• Has commencement and completion date;

• Terms cannot be more than the period of 4 years. It can be renewed through a mutual consent in a lesser period of time;

• Contract will be terminated at the end of the contract period, unless renewed by both parties (employee and employer);

• If the employer wish to terminate the contract for reasons other than those specified in Article 120 of the Law (U.A.E. Labor Laws), he shall be liable to pay compensation to the employee based on wages due to him/her.

• If the contract, however, is terminated by the employee for reasons other than those stated under Article 12l of the Law, the employee should be liable to compensate the employer against any loss resulting from the termination. The amount of compensation payable is calculated based on the employee’s salary for one month and a half or whichever is less.


Sources: UAE Labor Law
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KSM

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