What is an Unlimited Contract-Employment Contract?

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Meaning of Unlimited Contract under UAE Labour Law

Unlimited contract means the contract has a commencement date but no end date. The contract can be terminated by mutual agreement with the consent of both the parties by giving the necessary notice period mentioned in the employment agreement.

The employee’s wages during the notice period shall paid in full for the entire notice period served.

An employer may dismiss a worker without notice as per Article 120 of UAE Federal Labour Law.


Rules of Unlimited Labour Contract:

  1. An unlimited contract has a start date, but no end date.
  2. Employee or the employer may end or terminate the employment contract by giving a notice period of 30 days. It is also possible to extend the notice period if both parties mutually agree to extend  the notice period.
  3. The employer must pay the salaries or wages of the employee up to the notice period.
  4. If for any reason, the notice period was not served, the party which did not adhere to this condition must compensate the other party for the 30 day wages/salary.
  5. If an employee has violated any conditions under Article 120 of the UAE Labour Law, then the employer could terminate the employee with immediate effect.
  6. The employee also could terminate the contract as per Article 121 of UAE Labour Law, if the employer fails the obligations. 
  7. There must however be proper justification from employer’s side for terminating employee; for arbitrary dismissals and terminations, the employer will be liable to pay 3 months’ compensation to the employee. 

Article 120 – UAE Labour Law – The employer may dismiss the employee without notice in the following cases:

  1. If the employee adopts a false identity or nationality or if he submits forged documents or certificates.
  2. If the employee is appointed under a probationary period and dismissal occurred during or at the end of said period.
  3. If he commits an error causing substantial material loss to the employer provided that the latter advises the labour department of the incident within 48 hours from having knowledge of the same.
  4. If the employee violates instructions concerning safety of the place of business provided that such instructions are displayed in writing at conspicuous places and in case of an illiterate employee the latter be informed verbally of the same.
  5. If he fails to perform his basic duties under the contract of employment and persists in violating them despite formal investigation with him in this respect and warning him of dismissal if the same is repeated.
  6. If he divulges any secrets of the establishment where he is employed.
  7. If he is awarded final judgement by the competent court in respect of an offence prejudicing honour, honesty or public morals.
  8. If during working hours he is found drunk or under the influence of drug.
  9. If in the course of his work he commits an assault on the employer, the manager or any of his colleagues.
  10. If he absents himself without lawful excuse for more that twenty intermittent.

The employee will be entitled to compensation if the termination of the contract had been for an unjustified cause. The court may award the employee damages, against the employer, provided that the damages so awarded does not exceed three months wages of the employee and the calculation to be based on the last wage paid to the employee.

The gratuity is applicable to all the employees whether you are under Company’s sponsorship or Father’s or Husband’s sponsorship. Still if you are working for an employer, you are certainly entitled for gratuity under Unlimited Employment Contract.


  1. Martin says


    I hope you can help with the following.

    My contract states the following:

    “The duration of this agreement shall be Unlimited. As from 19/02/2015 to 19/02/2019.”

    It is my understanding that Unlimited contracts have no end date, so which applies here?
    Is this an Unlimited or Limited Contract?


    • Deepak says

      When this is mentioned, it means that the contract is valid for this time and is renewed automatically.
      You should talk to MOL and read your contract online on MOL site.

  2. Noemi Mendoza says

    Hi deepak
    I want to ask . I am under ulimited contract and i work for more than one year now . I found a new offer which is better than my present job .. but its a same field of work .. the salary is 5000 .. is there any possibilities happen if i will go for it .

  3. Franco says

    Dear Mr. Deepak,

    Good day Sir.

    I am an Engineer and I finished the limited contract for 2 years then renewed it under unlimited contract (now working for more than 6 months). I got an offer letter more than 12K from free zone company now my questions are;

    1. when i checked my contract via online it is mentioned limited but on the paper it is mentioned unlimited. which one will be the correct one?
    a. if i am unlimited & did not finished the contract will i get ban?
    b. if i am still limited will i still get the ban even though i am an engineer with more than 12K salary and
    will work in a freezone company?

    2. on the middle of my limited contract (let’s say my first year in the company) they let me sign with the attorney’s presence regarding that i cannot join in any competitive company within 2 years upon resigning. will i get ban if i break this? or get a civil case with them?


    • Deepak says

      1. I’d say, online systems are latest and hence they are correct. In free zone, labour ban does not apply. however, certain free zones may not issue visa if you have labour ban.
      2. Yes, this is considered as violation and your company may file case against you.

  4. daniel says

    Good day. Thanks for answering all the questions here.
    Hope i can get an advice from you. Because my previous employer is still holding my passport. days ago before the end of my grace period i followed up my passport when can i take from them. then they informed me that they will not give my passport unless i gave ticket going back to my home country. I tried to inform them that i have my ticket already but not going to my home country it’s in oman. and now i have finish my grace period and and will be facing penalty to the immigration for five days. But new visa ro my new employer is already in process we paid already the Labor fee 1556 and immigration fee the 3650. and now we are on the next step to immigration office.. they told the pro that i need to exit to be able to release my new visa since im inside the UAE. Is there any other way not to exit or take only Airport to airport?.
    and also my previous employer send me an sms that if i will not report to their office and not give a ticket going back to my home country they will make a file for me abscon. do they have the right to give me abscondy or do they have the right to send me to jail or deported me? and refuse to return my passport even if they cancelled me already?

    • Deepak says

      The employer could insist on exiting. There is also an option to change status within UAE. However, depends on employer.
      If you are overstaying in UAE after the cancellation of visa, there is a possibility to impose absconding.

  5. Niz says

    Hi deepak,

    I’m on unlimited contract since 28 August 2014. Now I have received a termination letter on 07.08.2015 under the article 120. I didnot go for any vacation till date. Will I be entitled to any of my end time benefits. Thanks in advance

    • Deepak says

      No, under Article 120, you are not eligible for EOSB. However, ticket and unpaid leave must be settled.

  6. Realyne says


    I would ask if I will have a labour banned. This is my situation, I came here in Dubai on a visit visa then I started working on a certain company last July 12, 2015. They send me to Kish August 4 for exit then came back with an employment visa valid until October 30, 2015, but I have not signed any contract with the company. Now, 4 days after I arrived from Kish, a bad thing happened in the office, my boss hit me, I reported him to the police. I ask for the cancellation of my visa since I don’t want to go back to work with them. With my situation, will still have a 6 months banned in labour with fact that I did not signed any contract

    • Deepak says

      I am not sure what kind of visa you are currently on or whether you have a labour approval!

  7. Ronny says

    Dear Deepak,

    I have been working for a company over a year now on a unlimited contract…recently had an accident that caused me to take off for 12 sick leaves all approved by ministry of health attested… I am a sales engineer and had performed really well , however as of returning from my sick leaves n recovered … The company has been interrogating me on my performance n leave n why I haven’t followed up on my leave with clients etc… Following it shortly 2 days later of returning which I have received a final warning letter that I have not signed yet as all the details are false n not true n discuss behavior n performance n not complying with company policies… in short it’s all wrong n I have given them business of 16 million dhs n there is commissions owed to me over 63k dhs … I have never received any warnings or notices before but have found out this is a trend that they have pulled off before to avoid paying out n point towards section 120 of labour laws … Please advise what shall I do as now I’m being forced to sign which I cannot since its not true n puts ME in weak standing .

    • Deepak says

      If you don’t agree to the accusations, do not sign on the letter.
      Take it directly to the MOL and you could file a complaint with them.

  8. Deepak says

    hi Deepak

    In my Contract the word “Limited” has written but there is only “commencement date” but no end date (End date column is blank). And no specific duration has been mentioned in Contract. So I am confused that my contract is limited or unlimited. Please let me know.

  9. RDC says

    Hi Deepak,

    I hope you are fine. I find your posts very helpful. I need to ask your view on my problem. I already submitted my resignation today to my boss. In my letter i didn’t put any reason why i am resigning only that i thanked him for the opportunity to work in his company. Only that i am still on my 3 months period and i resigned because i am no longer happy working with my boss. I have few questions on this:
    1. He said that he will not accept my resignation nd that he wants to work with my problem in the office but i don’t really like to because i heard misbehaviors from him over some of his lady employees. Is that possible that he won’t accept it even if i don’t want to work with him anymore?
    2. I put in my letter that resignation effectivity will be this September for a month’s notice period. Is it possible that i will not go back in the office since in my offer letter there was no stated that i should render a months time to work?
    3. I sent him a letter and an email (company) for my resignation, will that be enough proof that i already sent him eventhough i don’t have my own personal copy? Is there a possibility of that he will deny that since i don’t want to go back to serve my 30 days notice period? Thanks so much in advance.

  10. Mohammad says

    Dear Deepak,
    I hope you are doing good. I wanted to ask something from you.

    I am currently working in a company for almost two years. My labour
    card has also expired on 8/July/2015. I have given my resignation
    to my company on 4/July/2015. My employment visa is still not cancelled
    by the company as I am currently in my one month notice period.

    I have an offer from another company as an accountant and my new employer
    asked for attested copies of my degree to file a visa for an accountant. I have
    send my degree to U.K for attestation because my university is in London.
    My question here is that my attested documents will come to me by 7/Aug/2015.
    My passport shows my visa expiry date of 11/Aug/2015. Do I need to exit U.A.E ?
    If yes than what will be the last date till I can live legally in U.A.E ?

    My new employer said that once he will file the visa the visa will come soon and I
    won’t be needing to exit U.A.E because he will pay 600 something Dirhams to the
    immigration and then I do not need to exit U.A.E.

    So can I live in U.A.E after 11 august and wait for my new visa
    here only without going back to my home country ?? Is it possible ??
    If not then do I have to pay fines for the number of days I will stay until my new visa will come ??

    Kindly please advice.
    Will wait for a response from your side.


    • Deepak says

      Exiting will depend whether your old company would allow you to stay back post cancellation of visa.
      However, you do have 30 days grace period once your visa is cancelled.
      If you exceed your grace period you will have to pay daily fees of 30 dirhams each.

  11. Adrian Dsouza says

    I am a computer hardware and network engineer level 2.
    I came to Dubai through my cousins reference, i got an offer for service engineer into gas detection i was ok with that as i was ready to learn this as a new challenge and as a new opportunity. Before i came here i was told that you will have to do your IT work some editing of pages and website designing, gas detection and B-B sales for your extra income (that was like okk cool with me if i get some extra income. Any person on earth would love some extra income so i agreed to that). When i got my visa copy through email i asked my boss why is it mentioned a sales executive? He replied that this is to get you in the country as visas are expensive to get, once you are here your visa will be changed to service engineer; so i agreed to it and came here.(i was unaware he was bluffing) when i came boss gave me a target of 30000 sales i did not realise from the begining that he has cheated me and brought me. First three months i was learning gas detection and going on site visits with my senior colleague in gas detection. my salary did not come on time.( used to come after 10-15 days) But i did not say anything. After that boss started telling me to do sales and when i said i wont do full time you had told me sales will be for your extra income he told me if you dont want to do sales you can leave the doors are open for you. Still i kept quite but my salary didnt come on time. A few days later the senior engineer left the company and the pressure built up on me for sales. Now the salary started to come in my account after 25days from the salary day. It will be 1 year on 15th August. I resigned my job on 26th july giving 1 month notice and on thursday i was shown the paper for my cancellation of visa and work permit and asked me to sign i signed that and when i asked when will be my last day they replied on sunday your visa will be cancelled you can go then. That means they are sending me before i give my notice what should i do?? What all should i ask for as my clearance. Will i get a compensation for not letting me completing 1 month notice? Will i get gratuity for 1 year? ( as boss is pushing me out before i complete 1 year so as to not give me gratuity) will they provide me the return ticket?( confused here as for your previous answers i understood that depends on the contract but my boss not given me that also to mecan you explain me who has to provide for return ticket?) And most of all will i get a 6months ban? As i have been cheated by my boss and in part even i fell for it but thats my unawareness and 1st time job in abroad country. Please advice me should i demand to let me complete my notice and ask for return ticket or ask for compensation for not letting me give notice period? And will i get gratuity??

    • Deepak says

      if the are relieving you before your notice period, they should pay the notice period.
      If you finish 1 year, you will receive your gratuity which also includes notice period.
      SInce you have resigned, you may not be eligible for air ticket, however, leave balance should be encashed.

  12. dayana says

    Sir Deepak, Thanks for answering this questions. because my visa is already cancelled to the labour but my employer refuse to cancel my passport to immgration. and now my new employer wants to process my new visa. but the old company wants me to exit first to my home country and they will not give my passport. since i’m cancelled and facing bann but my new employer is willing to give me higher salary that can lifted my ban , what should i do? i will still exit? or can they process my visa inside in UAE? because i have only 8 days to stay here after laour cancellation of my previous employer. how to get a temporary working permit to immigration so that i can exit to the nearest one like oman.. there’s a temporary employment visa? which is better to proceed to labour visa or temporary employment visa?

    • Deepak says

      I am confused here. You are saying visa is cancelled and again visa is not cancelled!
      Pleae look into your query.

  13. kumar says

    Dear Deepak,

    I was terminated by my company with reason of under performance in the job as assigned by me last july 13 2015. I already competed 8 months . I don’t know my offer letter is limited /unlimited contract and I don’t have any labour card. Please help me know my rights as in my termination letter it is stated that my last day at work is Aug 13. With 1 month notice period. They did’t shows in the termination letter that they what will pay and give compensation. I’m crazy as how can survive with this situation. And Once I will terminate from the company , when will I come back in UAE for job ? or Visit Visa ? Thank you ..

    • Deepak says

      You should be handed with a termination letter.
      If the termination was arbitrary, then you could file a complaint with MOL.
      If you do not have a ban you could join another company and work.
      After cancellation, you could come to UAE anytime on visit/tourist visa.

      • kumar says

        Dear Deepak,

        Thanks for ur Reply.

        I ready to agree my termination from the company decision because I am working as a Sales Executive and I am not achive my target.

        Now my question is : What will I expect from the company ? (Air Ticket,Salary ,etc)

        • kumar says

          Dear Deepak,


          I was entered in the Abu Dhabi Air Port, and I am working in Abu Dhabi., Now I Terminate from the company.

          Can I go through Dubai Airport ?

        • Deepak says

          If you are terminated as per Article 120, then you will o=not be eligible for air ticket, salary. But it all depends on your company policy.

  14. Faith says

    Dear deepak,

    I was terminated by my company without any reason last july 8 2015. I already competed 8 months .My offer letter is unlimited contract but in my labour contract it is stated limited. Please help me know my rights as in my termination letter it is stated that my last day at work is july 8. With 1 month notice period. They want me to sign my cancelltion but did not pay me yet as i am confused as they still want me to work until august 1 as notice period. They shows me that they will only pay my notice period and 15days leave.. Im crazy as how can survive with this situation. I smell something wrong with this company as ive been asking my labiur contract and still not giving me even a copy of it. Where to go from here please help me k ow my right in this regard.. Thank you ..

    • Deepak says

      You should go as per your labour contract: limited contract.
      After probation, you should be paid compensation for 3 months for terminating you+air ticket+leave salary.
      You could file a complaint with MOL.

  15. athena says

    Hi sir. Im planning to go to Dubai as visit visa sponsor by my brother and find a job there. I would like to ask a help what contract is best? Limited or unlimited contract? Which is better to apply? In freezone area? What is the different between freezone area and not freezone area?

  16. Mohammad says

    Dear Deepak,

    I have been working on an unlimited contract from 17 July 2013. My visa expires with my current employer on 11/Aug/2015 but my labour card is expiring on 8/July/2015. I have given my resignation to my current employer
    on 4/July/2015. I have an offer letter from my new employer which I have already signed and I told my new employer that I will be joining the company from august that is after my one month notice period to my current employer.
    I wanted to ask that there is a labor or any kind of ban to me in my scenario ???? Because my new employer is asking for visa cancellation copy so that he can file my visa but my current company is saying that if they cancel my visa now I will have a six month labor ban. So what should I do ? Can you please help me in that.

    • Deepak M says

      If you complete your contract as per terms, I don’t think there is labour ban.
      You need to talk MOL.

  17. john says

    I have a very big question i would like you to assist me with.i am currently under a freezone company and i want to move out to another company because i am been overworked 14 hours in a day,no breaks the whole day,so my question is if i want to move to a another company which is also under freezone visa,is there any ban or charges am going to pay them.i have worked for 9 months already and my probation period was for 3 months.

    • Deepak M says

      IF it is within the same free zone, sometime, the the free zone authority does not allow transfers.
      You might have to consult first.
      If you are moving outside of free zone, then I don’t think there is any problem.

  18. Mohamed says

    Hi Deepak,

    My visa is unlimited and my designation is Computer Engineer as of now i completed one year in my contract. I am getting salary less than 4ooo from my current company. Now i got a offer from one company with a salary more than 7000. I informed my company regarding my new offer and ask them to release me. But they are not accepting to release me.

    Please advice me what to do in the situation. And how to get release from my current company.


    • Deepak M says

      If your company refuses to release you after you have resigned, you could approach MOL and file your grievance!

  19. says

    Mr deepak;

    pleaseplease advise me because my company is changing there agreement after they apply my employement visa but im working already for 1month under probisionary then when i ask the company regarding my rest day they said i dont have restday and cancel of is included in may basic salary and during interview also they said during training may duty time is 12hours then i agree but after 1month of trainging and after training will be 8 hours regular time but when i ask again now they said i agree with 12hours duty and 7days a week of work which is violating the agreement. .if i will ask for termination or i will resign does i have a labour ban?please advise me. .

  20. hanna says

    How should i know if my employer already cancelled my visa? ? if they don’t have a plan to informed me.can i chheck it through online?

  21. keren says

    Hello sir,
    Can i ask some advice? i know you can help me. My noticed period already done this coming week since i already resigned last month. im under unlimited contract and finish my 1 1/2 year of continues service with them. Now they informed me that before leaving the company i need to compensate all the visa expenses and they will not give my passport unless they will accompany me going to airport. . and also they will file abscond against me.

    • Deepak M says

      This is not acceptable from company’s side.
      Visa costs are to be borne by company and not employee.
      You could file a complaint with MOL in this regard.
      Yes, they can choose to give your passport at airport.
      They can not file absconding without proper reason and you actually absconding.

  22. Bertud says

    Hi deepak hope you can help me please.
    I already sent my resignation to my employer last may 25 and end of my notice period is june 25. But till now im still working with them because we are waitung for my replacement and he will come this july 1 but the problem is amy employer told me that i still need to continue working while he didnt know yet all the files that i will be turn over. I already have an offer from other company that will be lifted my ban..i just mention in my resignation reasons for resigning is personal reasons necessitate..
    I told them that i will return to my home country but unexpectedly ifound a new job that offer me a higher salary double of my salary now. But my employer told me that i cant leave the pffice without his apprpval eventhough i already give noyice period. And he threaten me also that he will deport me to my home country and he will not cancel my visa unless i dont have ticket and he will block me also to UAE.. and if he found out that i work to other company they will file a case against me.. i am very afraud about it since they have a very close attorney here. . I am also afraid to have a complain because i dont want to make this up to the court coz i really feel stress.. what should i do?

    • Deepak M says

      These are all classic pressure tactics used by companies!!
      You must first cancel your visa and exit the country and request your new company to apply for required approvals.
      Your old employer has no way of knowing your new status and he/she needn’t.
      If there is such complaint, you must approach MOL and file complaint against your company about such behaviour.

  23. Shaik says

    Dear deepak ,
    I work in abudhabi .my contract is unlimited my salary is 6000.my designation is engineer . Is any ban is applicable if I quit my job with one year service ? How to avoid ban .?

    Thanking for your advices

  24. Yogesh says

    I am working as a Civil Engineer, salary 8000/- per month
    My company given me notice of one month for termination of contract.
    I have completed 9 months in present job. Which compensation should I get? Also, can I join new company in UAE?


  25. William B. La Rosa says

    Dear Deepak,

    I just want to inquire my visa is from Abudhabi freezone from masdar city. Started from Dec. 2015 till up to date. My question is what benefits i will get if my employer wants to cancel my visa. Dou the busuness are not being started or closure.


  26. gener bernate says

    Mr Deepak,
    hi sir I just want to ask for clarification about my situation, I already finished two years working in my company and signed an extension of my contract for another 1 year.if I will be hired by the new company will I have a 6 months ban?

  27. MARIA says


    i’m under unlimited contract, i finished the first contract which is 2 years last 2013. So my company renewed it for 3 years until 2016. if i want to resign now, am i going to have ban? thanks

  28. Ahmed H says

    Dear Deepak,,
    my contract is unlimited and company want to fire me with out any reason ??? so shall i eligible for 3 month salary in compensation or not???

      • Junaid says

        Hi Deepak

        Many thanks for useful information, I have a question regarding my situation with my employer.

        I have been asked to resign from my position which occupied over 1 year in Dubai and over 2 years in Saudi Arabia, adding up to over 3 years in total with same company.

        I am offered 3 months compensation as my contract is unlimited but I am trying to negotiate a settlement for the car which I bought when I came over. The company paid 10% towards the deposit and paid monthly instalments for over a year now. I am reasonable to ask for the payment towards the car settlement as I have to pay the car off myself after termination if company does not offer any payment towards it. Car is bought on my name.

        I appreciate your response in this request.



          • Junaid says

            Hi Deepak

            Many thanks for the update.

            With 3 months compensation pay, do I get the gratuity for 3 year service with the company.



  29. Men says

    Sir, im under limited contract and my company wanted me to sign to unlimted which is not so good to me because im going to finish my contract after 6 more months.

    Theres a lot of my coulleagues were terminated after they signed fron limited to unlimited,

    And theres a lot of my coulleagues also were forced to signed resignation letter,

    If i will not sign that resignation letter and if they will terminate me under limited or unlimited do i will get labour ban? And can i get NOC from the company?

    • Deepak M says

      You have a choice not to sign the change in contract.
      It is better for you now to be on Limited Contract as the company will have to pay compensation if they terminate the contract.
      NOC will depend on the company.

  30. Vans says

    Hi. I just want to ask, i am working as a school nurse for 3 mos. Now and my probationary period is 6 mos. I signed for unlimited contract. If i resign, will i get ban? How can i lift the ban? Thanks.

  31. Maria says

    Hi Mr. Deepak,

    I am under an unlimited contract and I have filed my resignation effective next month after 6 months of service to my current employer. I was hired by a recruitment agency in my home country and a lot of information wasn’t disclosed to me prior my departure to UAE.

    Upon arrival, I was left with no choice but to stay until I have saved enough money to resign. There were a lot of issues with the company e.g., I wasn’t informed that we have to work almost 14 hours daily, only one day off (I was informed a few days only before my departure), and most especially, my boss was making me uncomfortable – making unprofessional or sexual remarks, and such. For fear that my boss would make it difficult for me to resign and would make ways for me to make the final days of my employment a challenge, I told him I wanted to resign because I wanted to go back to my home country. Only after I told him this reason did he accept my resignation.

    Now, I would like to ask if ever he has the right to file an absconding case against me if I don’t go back to my home country (as opposed to what I told him). I will not disclose this information to him and will just let him think that I’m going back home so he will not bother me anymore (I will shoulder all my expenses including my ticket back home or exit to UAE if possible). I am also planning to ask for a quit claim agreement mentioning that I am free and cleared from all financial obligations with the company. After my current employer cancels my Visa, does he still have the right to meddle/interfere about my plans after my resignation and cancellation? Thank you in advance

    • Deepak M says

      Absconding case is filed only when the employer is unable to reach the employee or has lost contact.
      Once the visa and labour card are cancelled, the employer has no right to file any absconding case.

  32. Mustapha Babatunde says

    Hello sir please am in an unlimited contract my six month is running now and I was not given any labour card by my company and am preparing to change my job my salary is 1000AED after given a month notice is there going to be ban or not.

    • Deepak M says

      From what you have explained, there seems to be a labour ban on you if you do not complete your contract.

  33. Bien says

    Dear Mr. Deepak,

    I just wanted to know to be sure if I finish two years to unlimited contract, am i right to send a notice not to renew, if the company want me to continue am i have a right to refuse it?

    and i just wanted to know if i can get all my benefits like gratuity.

    Thank you.

  34. Kiran says

    Hi Mr. Deepak,

    One of my cousin got job opportunity in one company. and he supposed to resign from his present company. he completed his 3 years visa ( means 2+ 1). so any ban will come on his visa(unlimited contract) if he resign from his job and want to join with new company?

  35. rafeekh says

    i am pharmacist in rak.with unlimited contract and completed one year now.is there any labour ban if the company want to cancell my visa.
    is there any labour ban if iam leaving the company

  36. apar says

    Sir I have completed 6 month in my recent company the name is Al dhafra restaurant now I got the chance to work in 5 star hotel as it is free zone. I resign from my company will I get banned and also I have graduation in same field tourism and hospitality management.

  37. celle says

    Hi Mr. Deepak,

    I am working already for 1 month as Receptionist in my current company and had the unlimited contract signed yesterday. I need to know what will happen if I will resign since I have a better offer from the other company as Telemarketer. Will I face a labour ban since I am still on my probitionary period? Do I need to pay for the visa expenses even if it not mention in the contract?

    My employer asks for my Bachelor’s degree certificate to process my visa; will the applicable salary for my next job is AED 12,000 to be able to lift the ban? or will it depend if the offered salary is higher than the current salary as well as the job position?

    Thanks in advance!

    • Deepak M says

      Yes, you will face a labour ban as your contract is done. By contract do you mean labour contract?
      To avoid labour ban, you will need 12K salary with Bachelor’s degree in the new offer.

  38. yram Lig says

    Good Day. base from i have read in the news paper if you ‘re under unlimited contract if you finish your continues service to the company you will not get any ban. is that true? Sir i will just ask an advice about this, because i’m under unlimited contract and i will complete my one year this june 23, and base from what i have read i need to give first my one month notice before leaving the company, i just want to know if it’s possible to give an advance notice period this coming may 23 and the effective day will be june 25 so that it will be exactly 1 year. what if they cancel it immediately while i’m on notice period?thanks. hope you can help me

  39. joshua says

    Mr. deepak, i just want to ask about my situation. Im under unlimited contract and will completed my one year this june. But in past few months me and my employer are always arguing and lots of misunderstandings. . then they have decided to terminate me,but the problem is they are forcing me to sign for a resignation which is i didn’t resign. If i will resign and sign the resignation letter should i have a ban? or what if they will provide me termination letter can i get ban?

    • Deepak M says

      You should not be forced to resign! ban is automatic.
      Yes, termination may also get ban. But you could request MOL to waive that!

  40. john says


    I am under unlimited contract and I already want to resign. I have been working in the company for 6 months now. I am a Certified Public Accountant and my current position is Junior Accountant. I have better offers from other companies and I want to grab a better opportunity.

    Please help me. What action shall I consider and what are the consequences if I resign now.

    Thank you very much!

  41. Vinod PAtil says

    Dear sir. I am vinod patil. I had been working since last tow year in ——————— as fireman. My contract period was tow year visa tetaus unlimited, I have been completed my contract period. But now company is saying you will not get the ticket you have to purchase by self, than what I do sir. kindly I need your help

    • Deepak Machado says

      Provision of air ticket is company policy and not mentioned in Labour Law. It is a facility not a right!

  42. Anonymous says

    Mr. Deepak

    I am working in a multi-national company in Dubai. In my Dubai visa it’s written Manager but internally, my official designation in the company is Supervisor.

    When they revised the Visa (I was asked to sign an amendment contract in which I managed to have a photocopy).

    My question is, can I use the Manager title while applying for another job outside? My fear is that, the Employment Certificate my current employer will issue Supervisor not Manager. I am afraid that maybe the hiring company will question the reliability of my declaration.

    Can you help me please. Should I declare Manager or Supervisor?



    • Deepak Machado says

      You should mention the designation that the company provides you internally and not on visa.

  43. Frances says

    Hello Mr Deepak, Please answer my question.
    I’m under Unlimited contract ,i been working for their company for one year this month, if i will resign to their company next month,can i get a ban or they can give me a ban or labour ban?

  44. Preet says

    Hi, I am on husband’s visa. I joined a company on January Month 2015. My probation period is 6 months. My job is target based and I have been best performer since Jan. I am getting opportunity from other Company. So if I resign in March Month so will I be banned?

  45. jc says

    i was from freezone visa for 2yrs and they transfer me into unlimited and now i already 1year in this unlimited in same companybasically i am already 3years in same company.if i want to resign do i have a ban for 6months?

  46. june says

    Sir how can i know if the company is processing visa to me,since they did not give me offer letter and they are the who told me to exit and wait for my working visa,but im still waiting more than one month already?

  47. Charles says

    Hi Deepak,

    Question, I am on an unlimited contract under and LLC company, and we have agreed to both parties to terminate my contract. What’s the procedure if we both agree in terminating the contract? am i required to still stay a month in the company. And will, i get a ban if the contract was terminated by both parties? If ever how can i lift my ban,? do i need NOC’s or what? HOPE YOU COULD HELP ME. THANK YOU!

  48. Naju says

    Hi, My contract is Un limited and i completed 6 months and 10 days. If i resign now, will i have ban? i got offer more than 5000? pls comment on this,
    what can be done

  49. franz says

    i want to resign to my present job i’m already 1 year and one month here and i’m on Unlimited visa, do i have a ban for 6 months if i will not complete my two years? and base from the offer letter that i have sign before i need to pay all the visas expenses if i will not finish my contract, do i need to pay all the expenses though it is not on my contract?

  50. yoyo says

    hi im on unlimited contract and under probation already working for more than 4 months, if my employer terminate me should i have a labor ban? and if i resign should i have labor ban also? please answer..

  51. anonymouse says

    Hi Mr. Deepak.

    Good day! I am in unlimited visa. been working in this company for 7 months already. I have decided to go home in my home country for good. I submitted a resignation letter with 30 days notice. I would like to ask do I need to pay for the visa expenses the company had for me? since they are asking me to pay for the Visa but its not written on the contract nor the offer letter. What could be the best action on this. I hope for a positive response. Thank you

      • anonymouse says

        what should i say to them since they ask me to pay? what will happen if the employer did not provide me my salary for this month after they know that i am resigning?

        • Deepak Machado says

          Employers can not hold salary. They have to settle it in the final settlement.

          • anonymouse says

            one last question. i have already submitted my resignation letter however they did not sign it yet. written on my resignation letter is the 30 days notice with the effective date. What if the employer refuse my resignation? what should i do? I really appreciate all your response.

          • Deepak Machado says

            You will have to come to agreement with your company.
            Companies can not refuse resignations.

          • Anne says

            Dear Mr. Deepak,
            I am planning to resign in my current job in a labor company and I might be hired by a freezone company. Do I need to inform my employer that I will be transferring to a new company because he might not cancel my visa if he knew about it just like what he did to one of our staff who wished to resign

          • anonymouse says

            They allow me now to resign however they informed me that they will not pay me on my 30 day notice. Help me with this please.

          • anonymouse says

            As what they told me they wont pay for my 30 days notice since i cant pay for the visa expenses they had for me. I am not so sure if which side is correct as far as i know based on the dubai labour employee is required to pay the employer on its 30 days notice, but i dont know how to defend myself to them. Mr. Deepak i really need your help for this. Thank you so much for all your response

      • Anne says

        Dear Mr. Deepak,

        I am planning to resign in my current job in a labor company and I might be hired by a freezone company. Do I need to inform my employer that I will be transferring to a new company because he might not cancel my visa if he knew about it just like what he did to one of our staff who wished to resign

        • Deepak Machado says

          Yes you will have to inform the current company that you will resign and serve the notice period as per contract.
          It is always better to do this. Employers can not force employees to stick to their companies.

          • Anne says

            But what if my employer will not process the cancellation of my visa? What shall I do from my end?

          • Deepak Machado says

            You will have to approach MOL in case the company does not support your situation.

  52. shahzad says

    Mr deepak
    if noc,termination letterand offer letter of new company is available.then what time we should apply to secure from ban on unlimited visa.
    i mean should we give above mention documents to p.r.o to submit with cancellation letter or wait for cancellation plus ban and then we should submit and wait for 1 week to check that ban is lifted or not.

  53. shahzad says

    hi deepak,
    i am working as a safety officer i but my visa status is labour supervisor, unlimited visa,now we don’t have project and i spent only 8 months, so i have been terminated with termination letter,noc plus reason is mentioned that due to completion of major project we don’t have further requirement of labour supervisors.please guide me about 6 months ban how to lift.
    and i also got offer letter of new company.

    • Deepak Machado says

      since you have an NOC from company, you will not face labour ban.

  54. Aseef says


    I am currently working on unlimited contract with my employer, as my project work has been completed with client by 31-10-12, as i worked for 8 months for the company, will I be eligible for any benefits after cancellation of my visa and Will there be any ban as my employer himself cancelling the visa because of non availability of projects.

    Please reply as soon as possible.


    • Deepak Machado says

      Gratuity kicks in once you have completed 1 year of continuous service.

  55. Kafayat says

    Hi sir am working with limited company for 4 months now .we work for 12hours and the salary pay is too small 1000ad per month.I want to resign .plss I will like u to tell me if I resign we the company ban me or labour

  56. jojo says

    i am local hire here in abu dhabi, my new company is unlimited visa,i am working for 2 months so yesterday i send a msg to my manager that i cant come to work because im not feeling well so shes send a message for me,she said dont bother me to come back to work until the further notice from HR decision on my status,i will be suspended until further notice; so what will be there punishment to me? if they are going to terminate me did i will having a Ban? or can i resign?

    • Deepak Machado says

      Under probation, employees can be dismissed with a day’s notice.
      Get NOC, if they have terminated you.

  57. FRR says

    I am in unlimited contract (labour contract) and at the same time, with a three years contract (second agreement with the Co.) I was allowed to take my annual vacation but received a call from my manager on day of my arrival to my home country informing me that he will have to let go me due to reduction in force and will only have one month when returned from vacation. Please advise what are my legal right in this case and what compensations should I receive?

  58. Mateen says

    Hi Deepak,

    I have limited contract and have completed two years with my current employer but unfortunately i could not find any other job as i want to change it. So please explain if renew my contract with them and after few month change my job will there be any ban ???

  59. Nara says

    I have worked for a school 3 years. My contract was renewed this year and it is unlimited. On April many teachers were given two months notice about termination , we worked to the end of academic year and received gratuity ,but not everyone got compensation salary. I was told that is because my contract is unlimited. But it is stated in my contract papers that one month compensation salary must be paid. Considering that we all were fired for the same reason (not having bachelor in education) should only those with limited contract receive compensation salary?
    Best wishes.

  60. sameer says

    I am going to join unlimited contract visa for new company.after the joining if i change to other company within six month or 1 year i have 6 month ban,write?

  61. Virlourd Batucan says

    Hello Mr.Deepak M.

    Please Help me. I’m working with my company for 1 yr and 5 months, and i’m with unlimited contract. I want to transfer to a new job. I was able to read an article that if you are under with UNLIMITED CONTRACT and if you work for more than a year continuously with your company, and you want to resign provided that you completed the 30 days notice period, you will not have a Labour Ban, plus i asked my Manger if they will impose a ban on me they said they won’t give me a company ban. My worries are How true it is that if i worked for more than 1 year, i won’t have an automatic 6 months ban…

  62. lalayn says

    hi sir im lalayn im unlimited visa i want to transfer to another work but i finesh my 1 year already could it be posible ill be ban or no if i transfer?

  63. says

    i was working on unlimited contract march 2012 to mrrch 2014 at dubai base company
    and i ahve completed 2 year than i resign in that company and return to india. and i got one offer from unother company i accepted that offer when they went to apply for my visa they founfd that i m having 6 month ban .
    Please canyou clear this
    its urjent

      • bernard says

        sir,i, working for 6 years and 6 month in company.and company terminate me in my job..I would like to ask if theres a ban for me beca for use i searching job right .I wanna to sure so that i will not wasting my time for seaching job.If theres a ban twhat would be the ban to me.And how be it will be remove.

  64. Shahul says

    Dear Deepak,
    I am working on unlimited contract. I just wants to know few queries.
    1.how many years should I work in this company to change the job without ban?
    2.After getting any offer from another company what is the procedure to relieve from the old one?

    Thanks in advance…

    • Deepak Machado says

      1. you need to finish your visa to avoid ban
      2. you need to have cancellation from old company without having ban

  65. mary says

    i would like to know the procedure on changing visa. i worked 9 years on the previous company with unlimited contract and now i got an offer to a new company on which is freezone. please advise as my daughter is under my sponsorship as well.

    • Deepak M says

      You need to cancel your daughter visa first and when your new visa is stamped you can sponsor her again

  66. V B says

    Dear Deepak:

    I have been working for the company for eight years. My labour contract for five years has been an unlimited contract and the last renewal it was changed to limited contract expiring next month. However my new renewal contract is unlimited but the start date of the contract is dated to 2012. When asked I was told that’s how its on the system. Can you advice if this is correct.

    • Deepak M says

      It might have been changed during the change of contract terms unlimited to limited. Nothing to worry your gratuity should be calculated from the date of joining (the day you started to receive your salary).

  67. sisir subba says

    i am working for a company for least three year and if i don’t want to renew my contract ,company they are telling me that i will get ma gratuity 7 days per annum and and no air tickets also too go back home country any comment s plz let me know what i i can do

    • Deepak M says

      if you resign before 3 years you are entitled to 7 days gratuity per annum. Since it is a resignation you have to shoulder your air ticket expenses

  68. Rk says

    Dear Deepak,
    I am on unlimited contract, as tax accounting clerk, and working for the company since sep-2013, totally irritated not satisfied with there accommodation, salary, working hours (there is a start time at 8 morning no end time sometime 9 at night depending on the owner’s will it could be 10 to 10:30) and friday also a half day only and no other holiday.
    I dont have a salary card even i dont know where is it goes and i just keep asking for salary like begging.
    i want to change my job is it possible? please be noted that i have a batter option.
    Please provided information that if i change,(What i have to do?) can i be slapped with 6 month ban? or what else.
    Will appreciate your help.

  69. RL says

    Dear Deepak:

    Article 120, clause 3 talks about an employee causing “substantial material loss to the employer”. How is it determined and by whom as to how much of a loss is “substantial material loss”?

    Thank you

    • Deepak M says

      Means any material loss directly occurred by an employee to the company or employer. It depends. Sorry I may not be able to answer this question since it is not clear to me too. ‘Substantial’ is a very subjective word!!

      • M says

        Hi, I’am under an unlimited contract, it’s been my second contract as I have already finished 2 years which is also unlimited. It’s basically my third year from the same company, I resigned and they will cancel my visa on November, 27 2014 and my temporary work permit on their sister company, do I have a ban of 6 months for that?

        Thank’s in advance!

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