Types of Labour Contracts in UAE
The employee-employer relationship is governed by an employment contract. It is a legal document which states what are the duties of an employee? What benefits he is entitled to during and after the end of his service? What responsibilities does an employer have? What is the length of the employment period? Disciplinary procedures and compensations for employers. All contractual terms must comply with the labour laws of the state.
There are two types of employment contracts followed in the UAE. The type of contract specifies how legal attorneys would assist employees and employers in different situations. The decision of the court is solely dependent on policies stipulated in the contract and the relevant articles of labour and employment law of UAE.
As the name suggests, this kind of employment contract states the commencement date but the completion date is not written. Employees can work until they want too and the same is the case with employers as they can get employee’s services as long as they want unless they are in good physical condition. Open contracts can be terminated with mutual agreements between both parties. There can be different ground for termination of an unlimited contract but a 30-day notice period is a must prior to termination. As per the conditions, the notice of termination can be extended with mutual consent.
Limited or fixed-term contracts in UAE last upon two or three years as per the requirements. The starting and completing date of the contract is stated as it is connected to employers’ residency visa. The duration of the UAE employment visa for a limited contract is according to the period mentioned in the contract. According to the legislation of the UAE, limited contracts are automatically terminated when the completion date is reached. To avoid termination, both parties should renew them before the expiry date.
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