sanseli07 Started The Discussion:
Hi,

I'm confused about a Limited & Unlimited contract. Could anyone define that for me..
Could you also tell me what is the notice period for both these.

I keep listening to various sides but am not sure which is the rite one.
Posted 5th June 2008 From United Arab Emirates, Dubai
Limited Contract

It will be for a specified period say 3 years

You should complete the entire contractual period then only you will be entitled for the gratuity.

In case you have to resign you should pay one and a half months salary to the employer or the remaining periods salary which ever is less

Unlimited Contract

This is for an unlimited period and you can resign by giving one month's notice .

And the gratuity will be based as follows

more than 1 year but less than 3 years 7 days basic salary as gratuity
more than 3 year but less than 5 years 14 days basic salary as gratuity
completed 5 years then 21 days basic salary
more than 6 years then first 5 years 21 days basic salary and the sixth year onwards 30 days basic salary as gratuity.
Posted 5th June 2008 From Australia, Adelaide
chand 
Hi lizancy,

I have 2 years Exp as HR generalist.
Would be helpful if u can clarify the following:

Can i work in UAE(Dubai) if i go there in dependent Visa?
Will there be any difference in the compensation if,working in Dependent visa or self visa?..

Also kindly let me know if a couple can survive in 7000AED if the accomodation is provided by the company

Regards
Chand

Posted 17th June 2008 From United Arab Emirates, Dubai
Hi lizancy,

In limited contract you have mentioned "It will be for a specified period say 3 years

You should complete the entire contractual period then only you will be entitled for the gratuity.

In case you have to resign you should pay one and a half months salary to the employer or the remaining periods salary which ever is less"

My question is after paying one and half months salary to the employer or remaining periods of salary whether it is sure that I can get NOC from my employer.
Posted 17th June 2008 From India
Dear All

Whether you pay the specified money to be relieved early in a limited contract it still depends on your management to approve to give you NOC (it solely depends on the management decision you cannot force them to give NOC)

The other thing is gratuity is applicable to all the employees whether you are under company's sponsorship or Father's or Husband sponsorship still if you are working for them then you are certainly entitled for gratuity.

TC
Liz
Posted 17th June 2008 From Australia, Adelaide
Vilna 
Dear All,

A doc has been attached which will give you an understanding of Limited & Unlimited Contract.This is an updated page from the UAE LAbor Law.
Hope this would be of some help to you.

Best Regards
Vilna
Posted 18th June 2008 From United Arab Emirates, Dubai
Attached Files
Shared By Cite.Community Member "Vilna" For Public Download
File Type: pdf Limited & Unlimited Employment Contract.pdf (531.1 KB, 3408 views)
Dear Vilna Can you please send any links to the updated UAE Labour Laws as well as the Articles with regards to the Visa and Immigration laws Thanking you in anticipation Liz
Posted 18th June 2008 From Australia, Adelaide
Vilna 
Dear Liz, This is the usual extract of Law that I refer to..... Any chanes to the same can be reffered online . Regards Vilna
Posted 18th June 2008 From United Arab Emirates, Dubai
Attached Files
Shared By Cite.Community Member "Vilna" For Public Download
File Type: pdf TAMIMI LAbor LAw.pdf (415.6 KB, 1080 views)
Dear Vilna Very useful article.. keep on posting the updates. Thanks once again for sharing.. sai srikanth
Posted 24th June 2008 From United Arab Emirates, Dubai
Employees under Limited Contracts are eligible for Gratuity only on completion of 5 years of Services

Employees under Unlimited Contracts are eligible for Gratuity on Completion of 1 year of service if the Employee resigns of his own and if he is terminated pro rata for the fraction of the year
Posted 9th July 2008 From United Arab Emirates, Dubai
Vilna, The PDF File on limited and unlimited employment contract could not be opened as it shows error. Can you pls repost the said file.
Posted 6th October 2008 From United Arab Emirates, Dubai
Vilna Me niether could not open PDF File on limited and unlimited employment contract as it shows error. Can you pls repost the said file.
Posted 25th March 2009 From United Arab Emirates, Dubai
ladla 
hi sir, my contract is unlimited and i am still working more than 3 years now if i resign from my company can there is any ban on me? 6 month or 3 month please help me
Posted 27th January 2010 From United Arab Emirates, Abu Dhabi
My contract states:

Period of Contract: Three Years and further renewable.

I would take that as being an unlimited contract, can somebody confirm this?

I have just been released by the company after 20 months employment, I was given 1 months notice (which I am not required to work), would I expect 3 months compensation plus full gratuity (21 days)?
Posted 25th April 2010 From United Arab Emirates, Dubai
Hi folks,

I have a query on Gratuity payment on Limited contracts - as quoted if a person resigns before completing 5years on a limited contract he/she is not eligible for gratuity and the same law also states that limited contracts are only to a maximum period of 4years, so after that does it become unlimited?

1. So if it's unlimited then after completing 4years and employee should get 21days salary and not zero gratuity.

2. Normal practice in most of the companies - they renew the contracts every 3years and the labor just stamps on the old contract that is extended for 3years (no period is specified) if that is the case then is it still a limited contract or unlimited contract?

Someone please clarify my query.

Thank you & Regards,
Jessie J
Posted 18th May 2010 From United Arab Emirates, Dubai
Hi, I have started employement with a UAE company, however I am severily unhappy. I am sure If I was to leave I wouldnt get an NOC from my manager. I am under a unlimited contract, do I have any hope in being able to get out of this? What is a legitimate reason to terminate employment? I have also been told I could work in a freezone without an NOC, is this true? Thanks Alison
Posted 29th June 2010 From United Arab Emirates, Dubai
hi , my friend is working in a dubai company with unlimited contract since january 2010.What are the bans&compensation he will face if he resign now in 1 month notice(ie.before completion of 1year)?
Posted 16th August 2010 From United Arab Emirates, Dubai
Attached complete abstract of UAE Labour Law for your reference. Thanks and Regards, Narayanan Kutty
Posted 19th September 2010 From United Arab Emirates, Dubai
Attached Files
Shared By Cite.Community Member "rekhamaniauh" For Public Download
File Type: pdf federalLaw-EN.pdf (236.9 KB, 190 views)
Dear All,

According to labour law in UAE there are 2 types of contract

1. Limited
2.Unlimited

Limited contract.
In limited contract it is for a stipulated period of time.for example it can be for 2 years,3 years or maximum 4years.
If you break the contact in between you have to pay 45 days salary to the employer if employee is breaking and if employer is breaking(termination) 2months salry + no of days salary mentioned in contract for notice period.
The contract is renewable say after 2 year,3 year,4 year as mentioned in your contract,and if you serve for more than 5 year(eg:3 year limited contract in first period and 2 year period in the next tenure of 3 years) you are eligible for gratuity as per UAE Labour law but you will face a ban of six months since the contract is broken
Unlimited Contract
It is for a period of unlimited time say for eg; from 21.09.2010 to.........Every 3 year you have to renew your labour card,but not your labour contract.If you break the contact before three years you are entitled for gratuity for 7 days,14 days,21 days,30 days etc depending on your service period,but you will face a ban for six months.One more thing this 7 days,14 days gratuity is the minimum amount the company has to pay,if they are kind enough!!! and wealthy!!! they can pay upto 21 or 30 days!!!(how sweet!!!)
If you serve the company for more than 3 years in unlimited contract for eg 3.6 years you will not face a ban (if you resigns),but if terminated you will get salary only for notice period mentioned in the contract(say 30 days,45 days,60 days,90 days)

If i am wrong please guide me

Suresh
Posted 28th September 2010 From United Arab Emirates, Dubai
I am working in company in last 4 year and 4 months it is a limited contract I want to resign my job due to family problems please clarify that any fine is applicable for me and what about the gratuity
Posted 20th July 2012 From United Arab Emirates, Dubai
hi,,,
im an indian who is working in restaurant, i hav a limited contract for 3years and it will expires on 07/08/13. i have successfully completetd 2 years but still 1 years more remaining...
so there will be any ban if i break my contract /opt new job......
plezzzzzzzzz help me!
Posted 17th August 2012 From United Arab Emirates, Dubai
Please help me, if a limited contract finished as per the specified period of 2years, is the Employee entitled for 21 days per yer = 42 days, less the absences? please clarify... thanks
Posted 6th April 2013 From United Arab Emirates, Dubai
If a limited contract of 2years finished by an employee, he is entitled for 21 days Gratuity per year which is 42days and less the absences, as per the law.
Posted 6th April 2013 From United Arab Emirates, Dubai
@ Ruzella If a limited contract of 2years finished by an employee, he is entitled for 21 days Gratuity per year which is 42days and less the absences, as per the law.

Yes. Ruzella. For a limited contract, the employee has completed the term mentioned in the contract is entitled to full gratuity i.e. 21 days for each year. So, 42 days of gratuity.
Posted 21st April 2013 From United Arab Emirates, Dubai
Dear Vilna Thank u very much for sharing such a wonderful info.
Posted 23rd November 2013 From United Arab Emirates
Dear Sir, I am limited visa, i have 10 months only in my company,i file already my resignation and they accept my resignation.The company they give a NOC,its possible i will search fo a new job?
Posted 26th November 2013 From United Arab Emirates, Abu Dhabi
Hello Everyone,


I have a limited visa,i been work only 10 months in my current company,i file my resignation and they accept,the company are giving a NOC.
my question is it is possible i can search for a new job
Posted 26th November 2013 From United Arab Emirates, Abu Dhabi



 
 
 
 







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