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