If you are looking for a job in the United Arab Emirates, one of the factors you need to consider is the type of employment contract that will be offered to you. In UAE, there are two types of contracts that employers can offer: limited and unlimited. In this article, we will discuss the differences between these two contracts and what you need to know before signing any employment agreement.
Limited Contract
A limited contract is an employment agreement that has a specific start and end date. It is typically offered to employees who will be working on a specific project or for a fixed period of time. The duration of a limited contract can range from six months to three years, depending on what is agreed upon by the employer and employee. Once the contract period has ended, the employer is not obligated to renew it. If the employer chooses to renew the contract, it can only be done for a maximum of two consecutive times.
Under a limited contract, both the employer and employee have specific obligations. The employer is responsible for providing the employee with all necessary documentation, such as a residency visa, health insurance, and a work permit. The employer is also required to provide notice to the employee if they are terminating the contract before the end date. The notice period must be at least 30 days, but it can be longer if specified in the contract.
Unlimited Contract
An unlimited contract, on the other hand, is an employment agreement that does not have a specific end date. It is typically offered to employees who will be working on a permanent basis. Under an unlimited contract, employees have greater job security than those on a limited contract. This is because the employer is required to provide a valid reason for terminating the contract, and the employee is entitled to compensation if the termination is not justified.
Under an unlimited contract, the employer has certain obligations as well. They must provide the employee with all necessary documentation, such as a residency visa, health insurance, and a work permit. The employer is also required to provide notice to the employee if they are terminating the contract. The notice period must be at least 30 days, but it can be longer if specified in the contract.
Which Contract is Right for You?
The type of contract that is right for you depends on your specific circumstances. If you are looking for a job with a specific end date or working on a project, a limited contract may be the best option for you. However, if you are looking for long-term job security, an unlimited contract may be a better choice. It is important to read and understand the terms of any employment agreement before signing it to ensure that you are aware of your rights and obligations.
Conclusion
In conclusion, limited and unlimited contracts in UAE have distinct differences. A limited contract has a specific start and end date, while an unlimited contract is open-ended. It is essential to understand the terms and conditions of your employment agreement before signing any contract. If you are unsure of which contract is right for you, seek advice from a legal professional or recruitment agency.