What is a Limited Contract?

Limited Contract – Employment

For individuals who are employed in UAE, there are 2 types of contract that can be signed between them and their employers:

1. LIMITED CONTRACT

2. UNLIMITED CONTRACT

In this post I will write about Limited Contract.

limited contract uae

What is a Limited Employment Contract?

As the name suggests, a limited contract is signed between the employer(company) and employee which is bound to expire on the date of the expiry of contract and is for a fixed term of time, usually 2 years. This means, a company can employ their employees for a certain period and not renew the contract. An employee who is employed on a Limited Contract has responsibility to the company till his contract is valid. After the contract expires, the employee need not work for the company.

Why do companies have Limited Contract?

For a company which has most of their projects to be completed within 2 years, there is no need to have more employees on their payroll. In such situations, companies hire employees for limited period. Limited Employment Contracts also help companies to gauge the performance of their employees over a longer term and if the employee is not up to their expectation, they need not renew the contract for that employee. Hence the burden of termination is not applicable. 

What about employees?

Employees who have signed a labour contract should carefully read their employment contract to see whether contract type, whether it is a limited employment contract or an unlimited labour contract. This will help them to understand their rights.

What happens if I resign under Limited Contract?

There are possibilities that as an employee, you would want to resign from your position before the Limited Contract is expired. 

If you resign under limited contract without completing your contract term, your employer may impose a ONE YEAR ban. In addition to this the as per UAE Labour Law provisions, the employee will have to pay half of 3 months’ early termination compensation to the employer. 

What if the company / employer terminates a Limited Contract?

If your company terminates your contract, the company will have to pay you minimum 3 months’ compensation or compensation for the remaining period of time.

Is there notice period in Limited Contract?

This will depend on the provisions of your employment contract. If it is mentioned that you will have to give a notice period, you will need to intimate your employer of the same.

Do I get gratuity or end of service benefits under Limited Contract?

Yes. You will receive gratuity under Limited Contract if you have completed 1 year of service. 

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.
  • Hi.im in my 7th month in a non-free zone company, I have limited contract with them earning 1800 a month. Now I’m being offered a job in a free zone company with 3000 as salary per month. Is there any way that I can resign and accept the job being offered to me? What are the things I have to face if I do that? What are the fees I have to pay and is there going to be a labour ban given to me? I’m a local hire here in Dubai and I was the one paid for my exit expenses when I was hired for the job.

      • Good day Mr. Deepak please give me advise regarding this :

        Hi sir, i would just like to clarify my current contract is limited with a visa of Telex clerk and salary of 3500, it is under category 4. I want to change jobs from telex clerk to phlebotomist (category 2 skilled workers), the new company is offering me 7500aed. Would i still get a ban? I have been working for 16months in my current employer.

  • Hello sir, myself Ujval m from Gujarat india. I have applied visa 3 times bur all were rejected. Actually I was there in uae ( jebel ali free zone) for less then a year And I have signed contract for 3 years but unfortunately I quit the company 14 days before one year from joining. then I spend 1 year and 2 months in my home country (outside of uae). However still my visa application is rejecting and as reason they just mentioning “ssecurity reason” I don’t know what is that security reason because I do not have any police related issues in uae and also don’t have any bank loans and also I have my visa cancellation document. So please tell me how can I know the reason of my visa rejection and I want to know reason just because I can solve it if there is any issues with me. And ya I have resigned from my company with ligel process and they have accepted also. Please please please do guide me. Coz I want to start there new business. ……..plz tell me what to do…..

  • Dear Sir,
    I worked for a freezone company under TECOM. My employment initiated a “closure” to our professional relationship and told me not report for work the next day. I have a 3 yr contract with them. I asked them if they’re going to give an official termination letter under company letterhead but they refused saying the closure is a mutual agreement. But I didn’t sign a resignation letter.
    What rights do I have against my former employer and what compensation are they supposed to give me?
    Please enlighten me.

  • Hi Deepak. ..
    1. How V can know that the company is freezone or non freezone
    2.i m working in home nursing service under limited contract since january (probationary).i Got an offer from one of the freezone hospital so can I resign this job..vl I get ban?
    3.3000 is my current salary the another hospital where I get offer they are preferring me 7000..
    4..of I get one year ban is there any chance to lift that ban..tthank u

    • Rashmitha,
      1. Freezone companies have their offices only within the Freezones.
      2. In Freezone, labour ban is not applicable. But breaking limited contract may result in immigration ban in some cases.
      3. Good.
      4. No, you can not lift immigration ban.

  • Hello Deepak,

    I have gone through so many posts of yours. I really appreciate your time and effort.

    I want a clarification on my situation.
    I am an MBA (certificates attested) and currently working with Sharjah FZE for almost a year (AED 4500). On contract, nothing is mentioned about its expiry or renewal. How do I confirm, if it’s limited or unlimited.
    Secondly, I want to understand, in case of termination by employer or if I resign, what will the consequences with regard to ban. If so, any alternate to save a ban with legal support from the employer?

    Note: The change of job apparently is for two reasons: 1. Different duties 2. Salary

    Thank you.

    • Nick,
      It will be clearly written in the contract that whether it is limited or unlimited.
      There will be no labour ban applicable in free zones.

  • Thank you Deepak!

    The offer letter and the appointment letter which was given to me didn’t mention anything such. Is it safe to assume it was unlimited contract?

    I’m aware about the free zone scenario, makes the employee to change the job within free zone. I get this, completely.
    If you can give clarification on what happens, if I change from free zone company to non free zone. Also, if you can highlight the importance of post graduate attested degrees. Are they alone sufficient to not receive a 6 month ban from any company?

  • Hi Deepak,

    As I had mentioned before that I want to leave my current company and want to go back to India. I had asked you about any compensation I have to pay or not and u had replied no if it is a unlimited contract and if limited contract than yes.

    I read the Limited contract law however I was not able to understand. Can u explain me what do you mean by the below sentence
    “If you resign under limited contract without completing your contract term, your employer may impose a ONE YEAR ban. In addition to this the as per UAE Labour Law provisions, the employee will have to pay half of 3 months’ early termination compensation to the employer. “

  • Dear Sir,

    I joined my current organization on 8th november 2014 and was on 6 months probation, I have resigned on 5th May 2015 (during probation) and mentioned my last working day as 6th june 2015 giving a notice of 1 month as per the company’s employment contract (limited).

    Today my manager called and informed me orally that I am getting relieved from tomorrow i.e. from 14th May 2015.

    I have asked for a relieving letter but they have denied it to me.

    My question is if the company does not provide me with the relieving letter, will it look like short notice on my part? will i have any challenges from the labour ministry in future, My current salary is AED 5000 and I have an offer of AED 12500.
    Kindly advice.

  • Hi sir deepak
    I just want to ask. Should I need to notify my employer that I’m not going to renew my contract and how long it should be before the expiration? And I’m just confused because my labour card expiration is June 17, 2015 but when I check online my labour contract is July 28, 2015. What should I need to be follow because I’m going to apply a new work. Hope you help me for this.

  • What is difference between Normal termination and under Article 120 termination. And please confirm that the following statement comes under Normal termination?
    “This is to inform you that management is not satisfied with your performance as after so many warnings you are not able to perform your duties on time.”

  • i worked in the private company with a limited contract. the company terminate me 8 months and they are telling for a poor performance. my question is NOC and offer letter of the other company will lift my band?. but my salary to them is the same as the previous company?

    hope you can advice.
    thanks

  • Hi, I’m 10 years already in my company and I don’t want to renew my contract, I found another one which is better, my contract is limited , do I have a ban , if I work in another company but same position.
    Thanks

  • Hi Deepak and thank you for your help,
    i have been hired as a podiatrist in abu dhabi. i signed an employment contract the 15/04/2015 and in this contract it is written that :
    if the employee terminate the contract of this employment, the employee will not work for a period of one year following termination with any company that is a direct competitor in abu dhabi or solicit business from or contract business with any customer of the company.
    if the company terminates the contract of this employment, the employee can work.
    this employment contract is unlimited to be renewed each 2 years.
    i signed the 30 june the labor contract wich is a limited one for 2 years.
    now i would like to know wich contract i should follow and if this restraint is valid as per law.
    please

  • It isn’t very clear to me from the Law; I wonder whether you could assist.

    – I had a limited contract of 3 years, 2 months notice period, with a semi-government
    – after 1 year I was let go as my company was overtaken by another company
    – I received a 2 months notice period during which I was paid
    – I think I received 1 month of extra salary, which is usually done by semi-government

    Did the company meet the “an employee is entitled to early termination compensation of a minimum three months’ remuneration, including salary and allowances.”

    Thank you for your advice.

    • Yana,
      No, they should pay you extra 3 month compensation in addition to the notice period, gratuity, ticket to home country and leave balance.

      • Thank you for the response. if the company didn’t fulfill its obligations, how shall I proceed?

        I wrote to them but they said that they paid – the notice period salary.

        Thank you, Jana

  • Hi Deepak.

    I want a clarification. I have register a complain in MOL last week against my employer. I joined the company on 8th March 2015. My contract is limited. but the company was torturing me, outrage of modesty and i was forced to get the termination from the company. Got terminated on 25th May 2015.
    They didn’t pay me the salary. I went to MOL and file a case against my employer for not giving me the salary and the illegal holding of my passport. Today i received my passport from the Dubai court but for the salary, my employer threatens me that i should take the case back or else they will put an absconding case on me. No idea what will be the further step. Could you please advise and also let me know about the salary, how many months salary they should give me and regarding the flight ticket can i ask my employer.

  • Dear Deepak,

    I worked for a company for 3.8 yrs on limited contract and resigned on personal reason. my company accepted the resignation but now they are saying there is no gratuity payable to you as you resigned before completion of contract and also you need to pay 45 day salary to company.

    When I resigned company agreed to release me and didn’t pointed out all these facts. If it is the case then I am ready take my resignation back serve for another four months to complete my contract.

    Kindly let me know what should I do…

    Regards,

    T.Raju

  • Hello Sir ;

    I have one photographic studio in Dubai,its started last month and we hired one lady staff from Philippines,and she was in tourist visa.we apply for new employment visa and got the visa.she start working duty on 13-5-15. we pay her one month salary (for may1st to 31may)we not yet sign the labor contract,we are waiting for her medical and stamping the visa.but when we are applying for her medical fitness request she saying can’t work any more with this company.as an employer can ask her visa expense to her?or what is the rights for employer.
    Thanks

    • Naison,
      Have you applied for her labour approval?
      If it is under process, she will face labour ban.
      As for claiming the expenses, you can not actually do that.

  • Dear Deepak, how can a person proceed if the company didn’t fulfill Article 113; providing compensation for early termination of a limited contract for reasons outside Article 120.

    Can a person still take an action if this happened 1.5 years ago but the person realized just now, after reading the actual law?

    Thank you, Yana

  • sir,

    i joined in private company 6 month back but they terminate me before completing my probation period.can you please tell me what ban i will get or i am eligible for 3 month salary from employer side?As i am in Limited Contract with this company and company terminate me after 5 month.

  • Hi,I am working in a clinic in sharjah since 7 months and I am under my husband’s visa.The clinic owner did a limited contract for 2years.But he didn’t did any labor card for me yet.Now I want to quit from the job.If I give him one month notice period ,can he impose an penalty on me.Please advise.

  • Hi deepak,

    I would like to ask some info about termination…My husband is working as an engineer in a construction company, he is just a new employee not yet in 1month but his Project Manager always get mad at him, his PM always wanted finish job on time, and now his PM decided to terminate him, … is it possible? Is my husband would benefit a minimum of 3mos compensation since he is only a month of his 2yrs contract…feel so bad because it is his 1st time to work abroad and its not good…thanks

    • Tina,
      Your employer can terminate you during probation without any reason.
      The benefits kick in once probation is finished.

  • Hi, I am working in a private company in DIP for 1 year. Now, I would like to resign from the company as I got an offer from other company with a salary more than what I am getting now. I am having a limited contract with the current employer. If I am resigning, what is the notice period I have to give. Whether it is 30 days or 3 months notice. Please advise

  • Dear Deepak
    I am working in uae since march 2015. I am working as an engineer but have been provided clerks visa (limited) by the company. Now I want to shift to another company and its offering me 11000 aed salary. I have folowing questions
    1. How to avoid ban and if at all its imposed how to revoke it.
    2. Does the ban automatically apply if company does not impose it and
    3. is it necessary to get noc from prev company.

  • Dear deepak,
    I want to ask one thing.i am working in company from 2 months with limited contract of 2 years. As working nature is not good in company.i took a emergency leave and I am going to my place back.but I dont want to return back.what a company can do.if I leave without intemating them.plz advise me

  • Hi deepak
    I have a limited contract for two years, but company has given me notice of one month after 7 months of my service mentioned the reason behind that they dont have work.

    Now questions are
    1. Will i face a ban
    2. What amount they sholud pay me

  • Hi
    I have limited contract and im working since one and half year and now i have problem with my health i have heart problem so can company cancel me easly or not or in this condition they will charge me cancilation fee or one month notice

  • im going to finish my 2yrs contract this sept 24, 2015. i asked my manager about my end of service. he told me that i will get only my 2yrs service ( 42 days ) but i will not get my annual leave coz are company is close for 7 months and i already take my leave because of that renovation. is it right that i dont take my annual leave payment because where close? reply pls… thanks

  • Hi,

    I just want to ask I finished my 2 years contract(LIMITED) and I renew then I have a job offer now so is there any any ban?? even if my company will not give me ban and they told me ill just pay for the 45 days remaining.Thank you

  • Hi just want to ask about my conditi0n I already finished my 2 yrs and I renew my contract (LIMITED) and now I have an offer letter so I decided to resign I ask my company if they will give me a ban they told me they will not give me a ban.so my question is the labour will give me a ban even if my company will not give me a ban????How about NOC from my company???? thasnk you.

  • Dear Mr. Deepak,

    I just completed my 2 years limited contract last July 2 in a private company, my visa will expire on the 27th of July. I have no plan on renewing my visa because I’m planning to transfer to another company. My question is, am I risking an employment ban? Or I can legally resign without any problems with the company? Thank you.

      • Hello again Mr. Deepak,

        If I resign now, my notice period will be less than 12 days since my visa is expiring on 27 of this month. Can I leave the company after this 12-day period? Can I pay for the remaining days that I will not serve in the company or is it mandatory to finish the notice period even my visa will reach the expiry date?

        • Gerald,
          That will depend on the company HR decision.
          You must serve complete 30 day notice period.

  • Hi Deepak,

    I worked in sharjah free zone and they terminate me after 1 n half years they told me because of my performance
    will they impose ban on me or will i get compensiation,how many days grace period i will get after termination
    can i go hme and come before last date

    • Jhon,
      Free zones do not have labour ban.
      Compensation depends on their policy. SInce they do not follow labour law.

  • Sir,
    Is still there will be a ban if company give me a Noc letter.. I have completed 1 and half years and its limited contract.

  • Hi, I join a company at Dubai in the beginning of June, so far not any paperwork has been prepared for me from the Company for my employment visa !!!
    I haven’t gone for medical.
    My current visa expires at the end of cumming August.
    The contract is open, (not any day is mention on it, it mentions only that the notice period for both the company and me during the 6 months probation period is one (1) day).
    Also I got a call from an other company that they have my CV and soon they will call me for an interview.

    My questions are the following:
    1) Is enough time for the company to apply for my employment visa and have it before the end of my visa expiration day which is end of August ?
    2) If the employment visa is not ready do I have to leave UAE and return to Europe and wait for my employment visa papers in order to return to the UAE ?
    3) Is my current company responsible to issue me the flight tickets to go to Europe and return to UAE ?
    4) If I quit before my current company stamping my passport, do I get a ban ? (I am an Engineer)
    5) The company that already called me ( I will have an interview with them the first weeks of August) tolled me that they want me to be in the UAE and not in Europe, do I still have to leave UAE as my visa expires ?
    6) Do I need to get NOC from my current company (I really don’t know what is the purpose of that document).

    Thank you very much for your help.
    John.

    • John,
      1. Yes. That is enough time.
      2. Yes, that is true. Also note that working while on visit/tourist visa is illegal.
      3. No, they are not responsible as you are hired locally.
      4. Usually engineers do not face labour ban.
      5. It is better to exit UAE before your visa expires. The fine for overstaying is 125 dirhams per day(approx)
      6. Better to obtain one if you already have a labour approval.

  • Dear Mr.Deepak

    Please advice i have received an employment visa for Dubai but still i am in India and got another opportunity for qater, Can i get visa for qater business visa? or i have to cancelled this dubai employment visa first even it was not stamped on my passport as i am in india still. Please advice.

  • Hello Deepak,

    In the limited type of contract of 2 years , does UAE labour law specify any type of gratuity, i.e. one months salary etc.
    My offer letter does not mention anything about one months salary after completion of the contract.
    But it does mention everything will be according to the UAE labour law.

      • Hi Deepak,
        I got ur Email id from “Emirates Diary”I had a big problem in present company,as I am B,E Civil Engineer & I had done Post Graduation in Construction management (part time).I had a Civil Engineer Visa & I am working in Abudhabi for almost 1 year and i have a “Limited Contract” and my salary here is 5000dh. Now I had Got a very good offer in Oman with good posting & i had resigned here & given 45 days notice period.Before they told they will release me,but after serving notice period they are asking for 45 days gross salary and to sign a 1 year ban.Now i am in a big problem.Please Suggest me as per MOL after giving 45 days Notice period i have to pay for that & the ban they are raising is for UAE or it will be a GCC ban.
        Please do the needful.

        • Yogesh,
          If you have read through the article, you would understand that you are required to compensate your employer with 45 day salary if you break Limited Contract.

  • Hello sir.deepak…
    I just want and advice…im working as limited contract and I already file a resignation letter last july 14, 2015.. but the the company did not approved my resignation letter….im still 10 months in the company..i resign because I need to go home for emergency…and I resign because the company did not give me a 1 week emergency leave..what problem will I encounter with this situation? How many months notice before resig… and do I have to pay for the company.?

    • Stephanie,
      Under limited contract, if you resigned, you will face 1 year ban and you will need to compensate your employer up to 45 day salary.

  • Dear,

    My friend is on limited contract. He have completed only for months and is now on probation period. Now he got a job in semi government company ( emigration visa).

    1- will he have ban if he resign on probation period?

    2- does he have to pay any compensation?

    3- what is the notice period he should give to the company? (as the new hired company wants the visa cancellation to be done at the earliest)

    4-will he have immigration ban? If yes, how?

    5- what if the present company doesn’t accept the resignation or delay the cancellation process?

    He’s really tensed nowadays, please help me finding these answers as he isn’t happy working there.

    • Sajad,
      1. yes, breaking limited contract would result in a 1 year ban.
      2. Yes, he should pay 45 day compensation.
      3. As per the contract.
      4. Not sure about this. But he will be unable to work in UAE.
      5. He could approach MOL.
      Consult a lawyer.

      Be part of a community at Emirates Diary Forum. Browse, ask a question at the latest feature of Emirates Diary. Visit: http://forum.emiratesdiary.com

  • 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.

    Thanks.
    Mohammad

  • i am working in advertising firm in Dubai under limited contract, i have completed an year, i want to resign now because of good opportunity in other organisation, i have b.com degree from India, there will b any ban or any charges i need to pay company

  • Dear Mr. Deepak

    I need your help on this. I have a 2 years limited contract with my company. I have finished 1 year and I am resigning now. I am aware that I am liable to pay 45 days salary to the company. However I had a particular amount of security deduction from the company for some months on the terms that the amount will be paid back when I leave the service. Will this be paid back now? Also am I entitled for any leave salary? I have not taken my annual leaves yet. Plus are there any chances of getting gratuity? My company provides tickets to hometown every 2 years. So will I be entitled to get a one way ticket?

    Thanks in advance.

    • Zak,
      Sorry for the delay in replying. I was out of station for couple weeks.
      I am not sure what kind of arrangement you have had with your company.
      Yes, leave salary must be paid. If you complete 1 year, you are entitled for gratuity. However, for limited contract, some companies may not pay.
      No ticket as you have not completed 2 years.

  • Hi Mr. Deepak, I have been working in my company for about 4.6 years under limited contract, (my second limited contract-renewed with them), then I found a job. My Labor Contract will end on October 2 and my Visa under my husband will end on September. I submitted my resignation, last day will be August 15, 2015. In the contract I signed, it was mentioned there that I need to submit 3 months notice. My question is do I need to pay them? According to HR I am not entitled to gratuity. Please I will appreciate you help Sir. Thank you.

    • Duke,
      Sorry for the delay in replying. I was out of station for couple weeks.
      UAE Labour law has a clause wherein under limited contract, the gratuity kicks in after 5 years.
      Notice period will be as per your contract.

  • Hai,
    Im working as nurse under limited contract.I have completed my one year…if im giving resignation whether i have to pay to the company and ban will be 1 yr or 6 month..how to lift the ban…..

    • Hai,
      if i’m doing one month notice period…..then i’ve pay to the company…..what about the gratuity???And if i’m joining in other company with more salary than comparing now…so there is any chance to lift the ban…..

      • Hai,
        According to below news that mean, no need of paying 45 days salary to the company and no ban if the person is breaking the conThere are no laws which prescribe that an employee should reimburse the employer towards the visa expenses.
        I would like to know whether an employee has to pay Dh5,000 as visa charges if for some reason he has to cancel his employment visa after six months of employment. Is there any law in the UAE wherein the employer can ask for the money before cancelling the visa of his employee?

        Pursuant to your queries, it may be advised that where an employee seeks to terminate his employment contract, the employer shall not be legally entitled to receive from the employee, any amount of money against the cost of visa incurred by the employer.

        It may also be noted that there are no laws which prescribe that an employee should reimburse the employer towards the visa expenses. Rather it shall be deemed to be in contravention of Article 60 of the Federal Law No 8 of 1980 Re: Regulation of Labour Relations which states:

        “No amount of money may be deducted from a worker’s wage in respect of private claims, except in the following cases:

        1) Repayment of loans or money advances paid to the worker in excess of his entitlements, provided that the amount deducted in this case shall not exceed 10 per cent of his wage.

        2) Contributions that the workers are required by law to make from their wages, towards social security and insurance schemes.

        3) The worker’s contributions to a provident fund or repayment of loans due thereto.

        4) Contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the labour department.

        5) Fines imposed upon the worker for any offence he commits.

        6) Any debt exacted in execution of a court ruling, provided, however, that the deduction made in execution thereof should not exceed one-quarter of the wage due to the worker. Where there are several debts or creditors, the maximum deduction shall be half the worker’s wage, which shall be divided pro rata among the creditors, after payment of any legal alimony to the extent of one quarter of the worker’s wage.”

        Professions and work ban

        I work as an engineer under a limited contract and I have completed only one year with the company. Now I need to quit, but I was informed by the MoL customer care that I will get a six-month ban and that the company can impose a one-year ban which is not removable. Also, I have to pay back 45 days’ gross salary to the company in order to start the cancellation procedure even though I gave them 30 days’ notice. My designation as per my visa is Electrical Lines Engineer.

        It is understood that you are working as an engineer with an entity in the UAE and that you have completed a year of service with this entity and also that your designation as per your visa is mentioned as Electrical Lines Engineer. It is assumed that your employment is subject to provisions of the Federal Law No 8 of 1980 Re: Regulation of Labour Relations (the “Labour Law”).

        Pursuant to your question, it may be advised that you shall not be liable to face a labour ban if you resign from your job before completion of the contract period. The Labour Law recognises that certain professionals shall be free to change their employment at any point of time.

        This is in accordance with Article 2 of the Ministerial Order No (13) of 1991 on ‘The organisation of the transfer of sponsorships of non-national labours the rules governing the same’ which states:

        “Non-national labourers may be allowed to transfer one job to another and hence transfer of their sponsorship if they fall under the following categories:

        a) Engineers

        b) Doctors, Pharmacists and male and female Nurses

        c) Agricultural guides

        d) Qualified accountants and account auditors

        e) Qualified administrative officials

        f) Technician operating on electronic equipment and laboratories

        g) Drivers who are licensed to drive heavy vehicles and buses

        (in case of transfer of sponsorship from a private firm to another or from a private firm to another or to a government department).”

        Further, it may be advised that, since you are working under a limited period contract, in the event you decide to terminate your employment contract, you will have to compensate your employer for the prejudice, by an amount which shall not be more than your 45 days’ salary.

        This is in accordance with Article 116 of the Labour Law which states as follows:

        “Where a contract is revoked for reasons other than those specified article (121), he shall be required to compensate the employer for any prejudice the latter sustains as a result: provided that the amount of compensation shall not exceed half the worker’s remuneration for three months or the residual period of the contract whichever is shorter unless the contract contains a provision to the contrary.”

        It may be noted that for individuals working under a limited period contract, there is no prescribed time-limit for serving a notice period prior to expiry of the contract.

        Ashish Mehta, LLB, F.I.C.A., M.C.I.T., M.C.I.Arb., is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore and India. He manages a multi-jurisdictional law firm practice, providing analysis and counselling on complex legal documents, and policies including but not limited to corporate matters, commercial transactions, banking and finance, property and construction, real estates acquisitions, mergers and acquisitions, financial restructuring, arbitration and mediation, family matters, general crime and litigation issues.
        tract?????????

        • Priya,
          You dont need to pay any charges!
          (Please refrain from copy and pasting content from other sites. It is better to provide direct link to the said article)

  • I deepak

    Hope you can answer my question very shortly.My contract was finished at august 11 -2015 and i inform my company to renew my contract.Do i need to sign a new contract again ? and If so can i change my contract type to limited to unlimited contract because my contract was 2 year limited contract.Do they have right to decline to change the contract type ? and also can i still facing with ban if i changed jobs after renewing my contract ? They was asking me for fill some documents for emirates id and visa renewal is it meaning my visa is still not yet renewed ? I didn’t sign any contract yet.

    thanks for your times

    • Chan,
      It is up to the companies to decide on type of contract.
      yes, if there is a change in contract, you must sign it.
      Labour ban is automatic.
      Sorry, I don’t get your last query.
      Note: You need to number your questions to receive proper answers!

  • Hi Deepak,

    I am working on 2 years contract visa. After working for 6 months I resigned , I have bachelor degree , 15k monthly . New salary is 17 K.
    As per company cancellation is filled first than . New visa will be applied.
    1. Plz let me know will ban be imposed.
    2.Will Cancelation of visa it self imposes ban though I hav NOC.
    3.Will new sponsering company will be able to get new visa in this case..
    4.How would MOL know the reasons of resigning.

    • Manish,
      1. For the salary you have, there could be no labour ban.
      2. No, not for your salary.
      3. Yes.
      4. That will be mentioned in cancellation papers.

  • Hi,
    I have got a new and better job and have resigned from the present company, which I have worked for less than 6 months, the 6 months period is getting over on 15th Sept. and have resigned on 27th aug, and the company has accepted my resignation and all the clearance is done.
    I have given my passport for cancellation, would like to know if the cancellation is delayed to more than 6 months, will there be a problem for me? I also have to join my new company immediately.
    please let me know, is it legal to work for the new company , by showing the acceptance letter?

  • I already finished two years limited contract last December 2014 and was renewed again for another two years for the same company, I want to resign on my third year. Will I get a ban?

  • I finished my 2 years limited contract last December 2014 and was renewed for another two from the same company.
    I’m planning to resign on December 2015 which is my 3rd year in the same company.
    Will I get a ban?

  • Hi Deepak,

    I am under limited contract , and wish to leave the company before my contract ends.

    1. what ban I will have , labour or immigration ban ?For how many months?
    2. which company I can apply or work for after resignation and imposing of ban.?
    3. what benefits I will get after I resigned? or I am the one will pay in the company.?
    thank you.

  • Hi, good evening. My contract is limited for 2-years and will expire on October 11, 2015. I will be renewing my contract for another 2-years without any amendments/changes in designation. The company will give salary increase upon renewal. My question are as follows :
    1. If in case I decided to break the renewed contract (2nd term of limited contract), will I get 6 months ban if I will transfer to private company?
    2. Can the company impose 1 year labour ban to me for not finishing the 2nd term of contract?
    3. Can the company impose immigration ban, if yes, on what grounds?

    Thanks!
    Dee

    • Dee,
      1. Yes, ban is possible.
      2. Breaking limited contract would usually result in 1 year ban.
      3. This is the rule for breaking contract.

  • pls i want to ask….my limited contract finished on 25 of august and i have already give my company a non renewal letter but my company manager is a very wicked man he said he will nit cancel my visa….and the new company……..now i am afraid now…pls what can i do?