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.

298 Comments

  1. Dear Respected Sir,

    I am presently working in Cleaning Services Company for almost 5 years as a Operation Manager.
    3 times renew contract from this company. Third time is last September 2018 and ends on September 2020.
    I am planning to leave the company and want to give 45days notice…

    Should Company can give me a van even completed 5 years?

    Can you please give me advise? And what should I do?

    Thank you so much

    Belen

  2. Hello sir,

    My contract is a limited contract and I finish provision period (7mnths),than I applied to resignation to the company.
    company cancel the my labour card and now asking me 45days of amount for visa cancellation ofter saying I can’t put a band so please tell what are the benefits can I get from company …

  3. Hi I am Working Under Limited Term Contract in Engineer Visa, Now I Completed 10 Months and i want to change the job , Any possible to Change the job Without ban ?

  4. Hi i Working in engineer Visa limited term contract , Now I Completed 10 months and I want to change my Job, its possible to change without Ban ?

  5. Hi
    I am working in dubai Limited contract i want to resign in ten months.My new offer is Aed 13000/month with bachelor degree will i get a ban. if soo can i able to lift it.

  6. I am working in a school under limited contract. I want to resign. This is my 7th month in the school. If I give three month notice, should I pay 45 days salary also?

  7. Hi sir im working also in limited contract im almost 1yr and i want to resign becauce our rights as a employee is not follow .and i well go back in my country .what will be happen sir?

  8. Hi! I just want to ask becaue I am about to sign a limited contract for a hospital in Dubai as a Nurse and they’re making me sign a non competition clause in which I cant apply to any of their competitors in SHJ, AUH and DXB once I resign from them. But I have a pending application in a government hospital in Abu Dhabi, but it will take at least 2 mos to finish the procees for the licensure there, not mentioning that I am already waited for it for 5months now, and I am in need financially, that is why I applied in Dxb. if incase, My application in Abu Dhabi pushes thru after 2months and I resign in this hosp in Dubai, will I get banned? The offered salary in AUH is 10500aed.

  9. what complain i will raise for my company???,limited contract and,,im working for 13hrs somtys 16 hrs but in my contract only 8hrs,,,,im working as a reception in th massage center 1 year and 3mos already,,,,,,,,, if 2years finished can i get the overtym pay??and the gratuity??

  10. I am working for Medical company on a limited contract (2 Years). The company HR Terminated my contract on 15th August 2017 and give me 3 months Notice period, my last working day will be November 15, 2017. The company din,t mention any reason for cancellation of contract. They are going to pay me until the end of November 15 (Notice Period). Have I got any more rights? I read online that I should be compensated with three months’ salary + Notice period full salary if the labour contract is terminated for any other reason than stated in article 120 of the labour law Note( My contract will complete on April, 2017) .

  11. Hi i am working in a govt company with limited contracted and copleted 9 months but i want to transfer to emirates airine.is there any ban for this? and how can i lift it

  12. Hi i am working in a govt company with limited contracted and copleted 9 months but i want to transfer to emirates airine.is there any ban for this? and how can i lift it

  13. Hi im working in hospital and my limited contract will end on 26th of august. Last month i signed an offer letter which is unlimited with 3 months notice. Now i wish not to renew my contract and withdraw the offer letter i signed. Should i pay 45 days because i wasn’t able to give 1 month notice or i will pay 3 months, because tge new offer letter was 3 months notice. Because they’re asking me to pay for 3 months if i will kot renew

  14. hi i am working with LLC company from last 1year 6 months and they have terminated me bcoz they dont required this position anymore.. is there any Ban for this, please let m know

  15. Hello Deepak,

    my name is adan and im currently working on a limited contract for 1 year and 6 months as a pizza maker .. and now the company have new owner and they want to change everything from duty timings from 10 hours to 12 hours and they dont give us the right amount for OT and . i want to know if i resign i will I be banned ? thanks for response

  16. Hi There ,

    I have worked for LLC. company as a sales manager with a limited contract for 2 years however i was assigned as a project director for opening a restaurant from the same owner. when i complied 2 years with the company, company asked me to sign on the cancellation paper that i received all my dues ( which i did not) since the company will be issuing a new visa which is for the restaurant project and all my dues will be transfer to that new visa and after the new visa was issued but company decided to cancelled the project right after the visa was on process.And now they are forcing me to sign on the cancellation of the new visa also but i rejected.

    I have already signed on the cancellation paper for the first visa that i received all my dues since i trusted their words.

    Now i am jobless and i asked the company to pay my dues from the first visa since they cancelled the project for the new visa but the company is saying that i have no right to ask anything since i have already singed that i received all my dues.

    i already raised a complain to the court but cant get a layer also since i cant effort.

    so do i have the right to claim for my end of service benefits and the vacation that i did not take from the first contract?

  17. Hello Deepak,

    My Name is Joseph, i am currently working on a limited contract. My company has not paid 3 months salary . On an average there is a delay of payment in salaries by 3-4 months from the time i joined. Now i wish to leave the company as i am unable to manage my expenses or survive here in UAE due to the irregular payment of salaries .

    Who can help me get my salaries and leave this company?

    The employer is at fault here as he is not paying our salaries do we employees still need to give a notice. What is the law in our situation.

  18. Hello deepak

    I am currently working as service crew under limited contract.i want to resign because some of the company contract privilege are not followed by the company. Especially the working time, breaktime and housing previlage. in this situation do i have to oblique to pay the company if i have to resign after 6 Months?

    • These are 2 different issues.
      If you break your limited contract, you must pay 45 day compensation.
      On the other hand, you must refer to your contract for your rights and privileges.

  19. Hello Deepak,

    I am working currently under Limited contract as Engineer(Engineer Visa). I completed 10 months of contract and now company is terminating me without giving a valid reason. What all compensation i can avail?
    Also what if the company deny to provide compensation?
    Awaiting your reply asap.

    Geetha

  20. Hi Sir,
    I WVT currently on my 3 years and 8 months under limited contract ,My visa is under general electrical engineer and salary of 2000 aed.i have received new offer with salary of 3600 aed..i spoke to hr they say i will get automatic 1 year ban from labour.is this true/i have degree also.what can i do?thanks

  21. Hi Deepak, Good day,

    I’am working as a civil engineer (Skill set 1) in one of the biggest contracting company in UAE. My contract is for limited period and i completed my first 2 year and now i renewed my contract 4 months ago. So this is my second tenure with the company and my renewed contract is also for limited period. My present salary is AED 6500 plus accommodation and transportation. My new contract in second article clearly mentions the notice period and salary compensation for terminating the contract as one month. My first contract started on 21/02/2015 and ended on 21/02/2017 and renewed on 21/02/2017 and valid until 21/02/2019. Is it possible for me to switch my Job if another company is offering me a salary less than AED 12000. Will there be any type of ban imposed on me if i terminate the limited contract?

    Thanks in advance
    Shyam

  22. Good day,
    I have spoke with a representative from Minsitry of Labor regarding a renewed limtied contract. I’ve completed 2 years of my first limited contract and my contract was renewed. My contract will end this November 2017. The MOL said that limited contract will turn into unlimited contract upon completing 1 more year of service after renewal. Is this true? Thanks.

    • Hi,

      I want to also ask MOL about my limited contract not yet renewed…just almost 1 year and 3 months with the company and then I got a better offer. My HR said I will have automatic 1 year ban so I want to ask MOL about it. What do I do when I get there?Thanks.

    • Hi Deepak,

      I amc currently on my 1 year and 3 months under limited contract. My visa is under sales and skill level 4 and salary of 4500 aed. I have received a new offer with salary of aed 7000. i spoke to our hr and she said I will get an automatic 1 year ban from labor. Is this true. what of my new offer will put me in sklill 3 as i have a degree also. thanks

    • Good day sir deepak M, I have the same case with Siva Ram. I am under LIMITED contract and I first joined the company last april 2017. this august will be my 4th month under probation period, and Im going to proceed with resignation. Am I going to have a ban? You said “will depend on the skill level and NEW JOB”? What does this mean? What about the new job? And also sir, can I ask the employer for me to render only 1month notice? As I have read some article regarding this, it stated “the parties have to honour the contractual obligations and indemnify the other with the agreed compensation between 1 and 3 months for early termination” thank u

  23. Hi,
    If i am terminated after 5 years of services. my gratuity calculated based on 21 days basic for each year or 30 days basic? unlimited

  24. Hello Deepak
    I am working in a trading company with a limited contract and now i completed 2.5 years as administration manager and the company will terminate me and my contract still valid for another 1.5 year , what is the benefits which i will have like notice period , gratuity or what else ?

  25. hello sir im working on limited contract for 2years and 3months will i get the ban if they
    breach the contract they stop to report on duty and they want me to sign the cancellation letter without receiving anything from them and they dont give me a weekly off for 2years and they deduct me 8000dirhams for the visa will i still get the ban even i have a complin against my company?

  26. hello sir i am woking onour company for 2years and they renew my visa myfirsta 2 years working with them i ask themi will go vacation and they told i needto buy my own ticket which is companymust provided but they already renew my visa last april 1,this year now my new visa im working only for 3 months just because they dont give me weekly off for 2 years and they deduct my salary 8000dirhams they said for the visa when i finish my 2years i ask themtogivemy depositand ticket for me but they dont like to give me so i decided to go out of this conmpany will i get the ban sir my contract is limited sir i hope u can help me

    • Company can not deduct any costs related to visa or labour card from employees. That is illegal.
      Air ticket need not be provided. This is covered nowhere in labour law.

  27. @deepakmm:disqus

    Hello sir, can you please clear my confusion as im on a limited contract in a Trading L.L.C company. The contract states ‘ The duration of this agreement shall be limited as from 07/09/2015 to 06/09/2017, but on my passport i see visa expiry on 1/11/2017. I dont wish to renew my contract and continue my service with the company, so need to ask what expiry date i need to consider as i will have to give a notice of nonrenewal before 30days?thx

  28. Hi im working in bakery before almost 1yr and 3months then the remaining months the employer transfer me to the restaurant with out any increament then i completed my 2yrs i renewed my visa under limited contract but still with out increament and in my contract renewal under bakery but im still working in the restaurant. If i do resign not completing the 1yr. Do i have to pay? Thanks

  29. Hi, iv’e been in my company for about 3 years and 3 months. (1st contract – unlimited employment) (2nd contract – limited employment)

    i just want to ask if i will get a ban if i resign or do i need to pay the 3months?
    thanks

  30. Good morning. I am working I the restaurant. I have too many questions in my mind. I’m under limited contract at it will expire on November. I just came from vacation this January . A few days of this month they talk to me and says that I need to take local leave 1 month plus holidays and overtime it total of 53 days to use. But they advise me to look for another opportunity . 53 days can be extend to more than a month. I’m planning to give my resignation after my vacation as per the company 2 months notice.
    What should I do if they will stop me to work on September? Will I get gratuity for less than 4 years even they force me to look for another Company? Do I have to pay ? Thank you

  31. Hi Sir,

    I would like take some advise from you Sir.I hope you can….

    I’m already completed 10yrs on my company and recently renew for another 2 years.
    But this coming December I plan to settle in my own country.
    Just want to know if I have any liability if I did not complete the another 2yrs?
    Do I have pay on my employer for early termination of contracts.

    Thanks you so much hopefully you can help me…

    Regards,
    Randy

  32. Hello Sir
    I would like to know the compensation to be received from employer on termination of limited contract (expiring in August 2018) by employer for a employee working for more than 10 years. (renewed limited contracts)
    under Article 115 :- Break of limited contract
    Under Article 123 :- Arbitrary termination
    Under Article 131 :- Repatriation expense
    Under Article 132 :- Gratuity

    • You should receive 3 month salary for breaking limited contract .
      You could contest arbitrary termination with MOL/MOHRE.
      Yes, you must be paid a href=”http://emiratesdiary.com/uae-labour-law-2/is-the-employer-required-to-pay-the-repatriation-expenses-of-employees” target=”_blank”>repatriation expenses.
      a href=”http://emiratesdiary.com/uae-labour-law-2/gratuity-calculation” target=”_blank”>Gratuity is a must.

  33. hi.
    I m working under a limited year contract, its only 1 month after my visa stamped, but i thinking about resigning. However right now i m in probation period ,so they have any rights to ban me for a year ?
    please give your advice

  34. Hi sir my name is mughees Ahmed I would like to ask you I join new company last 5month ago nd now company termination my services so I still get a ban?

  35. Dear Sir,
    I am working in hospital as nurse this is my 7th year in same hospital. I want to resign I am ready to give 1 month notice and 1 month salary, but management is asking me for 3 months notice period or 3 months full salary. They are telling it is mentioned in contract. Is it legal or can I go to MOI?

    Thank you

  36. Dear Sir,

    I would like to ask if we want to resign from limited contract because they are violating rules, like non paying of overtime, no employment contract provided to us, no health insurance, do we still need to pay and entitled for labor ban?

  37. Hai sir, i am in limited contract, i completed my probation,i got offer from other company, any notice period for me?i contact MOL they told i have to pay 45 days.salary and no notice period ,any idea?

  38. Hi sir great day,

    I am working as sales representative, I already finished my contract last October 2016 and I renewed for onother 2 years under limited contract,,, now I’m thinking to give my notice to my employers,,, will do I get any penalties for this… Thank you.

      • My friend has the same situation like the above, can he get his 2 years gratuity after finishing his first contract? and then he decided to renew his contract but wish not to finish it until the period? I mean he will work for maybe a year only like that. What are the consequences for his action? Hope to get your kind response.

  39. Hi I work for an Employer here in Abu Dhabi on a limited contract for 2 years however i joined this organization in March 2017 and recently i have got another offer from a bigger organization offering me a better salary and compensation. Hence i want to leave my current organization. Though I’m still under my probation and i believe i can terminate the contract with or without notice however what I’m afraid of is if i need to pay anything to my current organization and if i would incur any labor Ban?

    Please advise

  40. Greetings Deepak. If you are on a fixed 2 year term contract but it includes a notice period of three months, what happens at the end of the contract, is the employer still required to give the employee that same notice they they will not be renewing the contract at its natural end? This is the second two year contract and the last one automatically renewed. This time not.

  41. Dear Sir, I have limited contract.. however, I didnt finished the 6 months probationary period and I resigned on my 5th month since I received my work visa in the US. The HR told me I need to pay 45days of my salary to cancel my Visa.. what do you think about it? What does it state in limited contract with regards to employees who are not yet regularized yet? Do we need to pay anything? Thanks!

  42. Dear Sir,

    I am working with a company in Silicon Oasis Free Zone, with limited contract. my date of joining was 20th Nov whereas on my contract the date mentioned is 1st Feb. now my company is broke hence want me to resign for they cannot pay the salary and are still taking me under probation period when it is already finish on 20th May according to my date of joining. please guide me if the law calculate the probation period from the date of joining or from the date of contract.

    Thanks

    Kind Regards

  43. I am working in limited contract on renewal basis every year. Am I eligible to take Job loss insurance from national Bond.

  44. sir,

    my husband working the company 2007 january 10 .he received one month termination letter on his company 28 December-2016.He completed one month of termination period 28 January 2017 . But still company not give the settlement .He is living in family accommodation which is company provided. Iam also doing job my husband visa during this iam forced to cancell my job contrat before his termination period.What we can do about the company or how can we get all settle ment in the company

  45. Hi Sir Deepak,

    I just wanted to clarify something about this limited contract. I am working here in abudhabi with a limited contract but I really wanted to resign since they are not giving us the monthly wage on time. We don’t have salary for the month of December 2016 and January 2017. They are always like this, they don’t give us the salary every month and delays for 2 months now. My question is can I resign from this company prior to the end of my contract without paying them the said fees (half of the 3 months)? Thank you for your response.

  46. Dear Sir,

    Good day!

    I am working in Dates company, my contract is limited..i just renew my 3rd contract..today i decide to resigned because i got a new company and same Dates company…but i didn’t yet finish my 3rd contract…my boss told me i will get 1 yr ban and i lost everything if i pursue my resignation…can you please advice me what should i do?

    thank you so much..appreciated

  47. Dear Sir

    Good Day….

    I am working in a real estate as an accountant, my Labour contract date is(24/5/2015-23/5/2017) and EMirates ID date is(6/7/2015-5/7/2017),so what will be my contract expiry date, and when should i resign if i did not continue further…
    Please Guide me

    Thanks

  48. Hello brother.
    I am in my 3th month in an marketing company
    I have limited contact. Iam a designer Now my company not taking work so management told me to find another job.my present salary is 5000aed
    Now I find another job with 7000aed my company rady to give me noc .and I have a bachelor certificate. If am cansel my visa I get any type of ban ?pls tel me.

  49. Hello sir
    Kindly can you help me to answer my few questions.I am working in a company for more than 6 years,my first contract was 3 years(limited) afer that i renewed for 2years(limited) and again i renewed my visa for 2 years(limited) now i have 9 months to finish my final contract but i want to resign before my contract finish,do I need to pay for company even I’m 6years?Company is asking to pay for 45 days salary,if I have to pay than should amount be paid by basic salary or full?how much company must pay me for my 6 years service?please advise me.thank you

  50. Good day , Mr.Deepak
    I have signed a Limited contract with lump sum 20200AED and which states the date of status amendment from 06/01/16 and ending on 05/01/18, Now the company is modifying the contract with a different a lower salary of 8000AED.
    My question here is ” Is it possible that the company can modify or cancel the contract well before the contract expires and with a lower salary ?”

  51. Can u give me advice or information
    I renewed my visa after my end of contact.and if I resign with in 6month .should I need to pay for company?

  52. Hey Mr depaak
    I have a company where I signed the contract in January 24th 2016 and I made exit after 4 months they send me a visa I came back on May 23rd 2016 since then the company never started working after I got a new job in oil company so I want to resign but I don’t know whether I will get a ban or not please advise me about that its urgent
    thanks a lot for your service

  53. I have recently joined a company which is giving me lot of burden work and not paying me over time. My contract is still under process since 2 weeks and I am thinking of resignation. Can I do that? What will happen if I do that. I was not given copy of contract but my colleague says all have limited contract here.

  54. Dear Mr. Deepak,
    I would like to ask if i will be banned here in abu dhabi or worse in UAE if i will resign from my job in a hotel where i have completed 1 year and 3 months but i am under a limited contract for 2 years. I really need an immediate answer Sir. Thank you.

    • Your employer have a choice to ban you for upto 1 year from taking a new employment in UAE if you are on a limited contract issued by Ministry of Labour work permit.
      ( Check your visa whether it is issued by MOL or comes under Emmigration as most of the star hotels comes under different catogory of visa)

  55. I wanna go leave the company actually my contract is limited now I have done 6 months tell me please how much fine if I wanna don’t Ban because I wanna give the fine of company. Please tell me everything about limited visa if who should resign after 6 months. Thankyou

  56. I worked with rent car 18 months now I want to leave this company will they give me one leave salary

  57. I am working in a company as Engineer with Aed:5000 , my contract is limited .I Joined here 4 months ago I got offer letter from another company they are offering 8000 as Supervisor ,Will i get labour ban ,if iget ban can i remove it ?

  58. Hi sir..Just want to ask something
    My contract is limited and it was ended last july 17,2016
    I decided not to renew that contract yesterday Aug,21,2016
    I did not sign a new contract and just give my immediate notice yesterday Aug 21,2016.
    Do i need to pay the employer 45 days?knowing i did not sign a new contract.
    Will my gratuity be void as well just because I did not renew and give an immediate notice yesterday.
    Please give me an advice.

  59. Mr. Deepak
    Good afternoon
    Sir i just need ur help plss
    I finished my 2 years contract
    After i renewal already six months done now i want to go back to my country for getting married…so what is there rule they have to cut my salary or i can go please help me thanks

  60. Hi Deepak Sir
    I resigned last month and gave a notice to my company of 30 days..but when company called me for settlement they are not paying me my gratuity. ..my contractwas limited but now I stepped into fourth year….Iheard that Iif you are renwing in the same company after three years limited contract become unlimited os this true………

  61. Mr. Deepak,

    Please help !
    I am working with non free-zone company since last 7 months and my contract is limited for 2 years. I heard no BAN if I switch over to the job / leave the current position.

    Also, I heard once your probation period is over – no BAN.

    If I leave my current position and switch over to the new company – Any BAN on my visa.

    Please provide your valuable input.

    Thanks in advance.
    Please assist and advise.

  62. I have a problem I work supply company and I work 19 months work I give resignation paper before one month and they stop my duty after 10 days still they give me clearance from my camp, but till now they didn’t cancel my visa and any action, they told me we are cutting from ur salary 45 days but they mentioned my last duty only 10 days how I have 850 salary I pay my visa from my country how and one month complete I don’t have any information for my resignation when I call my supervisor they just say ur paper in gm office only take sign so still I don’t know because I don’t have more money to eat in ramadhan also they make me late I don’t have enough money to eat and they told me 45 days they cutting please help me to send me my country please sir what I do

  63. I work in RAK Free zone as a Sales manager and my 2 yr limited contract ends on 5th Jan 2017. I have received a “Termination of Service” notice today saying that my last day is 30th June. The notice says “as per verbal discussions with xxx, the three months notice expires on 30th June which is my last working day” The letter further asks me to settle the dues with the HR. There is NO REASON mentioned in the termination notice. According to the employment contract with the EMPLOYER the notice should have been 2 months but the letter says 3 months notice. My question:
    1. is a verbal discussion treated as a formal notice? What can be termed as a formal notice.
    2. Am I eligible for a 3 months salary from the employer for braking the contract 6 months in advance?
    3. Should I be given a 2 months FORMAL notice?
    4. Can the employer apply a ban on my for 1 yr or what ever?
    5. Can I be compensated against balance leaves?

  64. Hi deepak bhai, i ask you.i work in reastrorant after 2 month now i change my job.so 6 month after i change my job without ban of 1 year.and other rules.

  65. Hello Sir !
    I am a doctor, working in a private hospital (in Abudhabi emirates ) for last 23 years.
    I have Limited contract – which says “should either party desire to terminate the renewed contract, such party shall notify other party within ONE month prior to date of termination. Such period shall be similar to both parties. Both parties have agreed that the termination wage to be paid by terminating party to other party shall be equivalent to the value of worker’s total wage in ONE month. Such wage shall be similar to both parties.
    I am planning to terminate my contract and joining another hospital.
    Can my employer put ONE YEAR BAN on me ?
    Will i have to pay 3 months salary ? (though in contract its mentioned one months salary)
    Thanks and Regards.

  66. Dear Deepak,
    Please reply below.

    1) I am working as Purchasing Supervisor (As on visa) on Limited Contract for a private LLC contracting company from 02.12.2014 to present on the salary AED 3500/MONTH (around 1.5 years is completed).

    2) Now i got job offer as Equipment Operator from “Emirates Group / Danata” with the salary of AED. 3200/MONTH + O.T.

    3) I am M.A in English + MBA in marketing, both the certificates are attested.

    4) If i resign my company, what about ban???? do i need to pay 45days salary to the employer??

    5) Is EMIRATES GROUP / DANATA fully government owned company or semi?

    6) I think one should not get any ban joining such big companies.

    7) actually i don’t want any clash with my present employer.

    Please reply sir.

  67. Hello
    Please help me
    I have completed my limited contract of 2 year. And i dont want to continue with them anymore
    Will my company have to give me air ticket ? Plus my one year leave settlement ?

  68. Hi Sir,
    I just want to ask if my employer will sell or close her beauty salon due to no profit or bankruptcy am i entitled to such benefits?my contract start from february 2015 and ends on March 2017 under limited employment.And she is planning for closure if not sold before June 2016.Thank you

  69. Dear sir,
    Have a nice day! Im under unlimited contract then when i was resigning before 6 months, they told me that i need to pay my visa its over all total 1900 dirhams, if the company is under government or semi government do we need to pay for it?
    Hope to hear your answer.
    Thanks a lot!
    Sheryl

  70. Hi Deepak,
    I need your help. I looked for a company job but I failed. I decided to work as a housemaid for expat. I believed that expats can only give 1 year visa so I took the risk, knowing that I will endure 1 year and will try to look better job after my contract. Before I start my work as housemaid, my employer said that they will process my visa as soon as they cancelled their previous housemaid. I agrer to that coz I still have visa. The family was so nice to me but then they didn’t process my visa righy away like what they promise me. I started my work Jan. 16, 2016 and they finish transfering my visa April 21, 2016 which means I am working for them for three months before they transfered my visa under their sponsorship. Then they started to change. The are giving me more work than before and there are lots of changes like dos and donts… So now, I am confused. When I signed the contract I noticed that its a 2-year contract different from what i believed that expats can only give 1 year visa and it means 1 year contract. I asked my boss before I sign. I said,” sor why isnit 2year contract I thoughy its only 1 year.” He said, oh don’t have to follow that, its just formality. So i signed. Then again, when he gave me.my passport, I saw my visa is 2years. I’m shocked!
    Now that they are showing me different treatment, I want to look for another employer. My question is, I am not sure if wat type of contract I belong. Is it Limited or Unlimited, I have an idea,though but not 100% sure. Can u please tell me what type of contrat i have and if I will ask my boss to release me so I can find another employer, will I get ban? What r the consequences? Is it a good ideanor bad for me? Please advise…. thanks in advance

  71. Hi i would like to ask regarding my status… My labor contract has expired already yesterday 27/04/2016… And my emirates i.d will be on june… Can anyone tell me if there was any penalty on that? That my contract is already finish and im still on duty.

  72. Dear Sir,

    I joined feb 2016 in an design consultancy firm (of 10 members )in UAE as an Architect. Unfortunately the employer suddenly terminates my service on March 2016 (my service was approximately 1.5 months only).Sudden shock for me . During this time the employer stamped my passport and applied for emirates ID too. But not yet received emirates ID,status showing under process. So dont whether the employer kept it as hold also.

    Honestly speaking i dont know exact reason for my termination from job.The employer told me he cannot afford me with double the salary of junior architects due to recession…plus i am doing the same job as of them ….Since i am working first time in UAE , i was understanding office style and working to my best the work given to me..And I am sure that I done my work well…

    My assumptions for employer terminations are :-

    * The employer was holding my education certificate with them .What they told while taking the education certificate is they will return it after applying for visa.Once visa application is done i asked for my education certificate.They told it was with PRO. And once passport got stammed i again asked for education certificate.At that time what they told the education certificate and passport will be under custody during my service. And i questioned it since they ddnt tell anything abt it during signing the agreeemrnt and asked for acknowledgment from them for keeping it. They dnt give any acknowledgment ,instead they take acknowledmnt from me for taking the my passport from them to start bank account saying i will return back to them. Again i asked for acknowledgment from them for keeping my personal documents with them.will it be a reason for termination???

    *I had a plan to sponsor my husband too.Once i get my emariates id . Is there any role in employer in that ???

    Since in a sudden i lost my job , will there be any ban for me if i find a job here in UAE.Please advice me the formalities and things i should know while i got terminated and finding me job here in UAE

  73. Dear Deepak,

    I am Anees Ahmed, was working with a manufacturing firm. Please advise on the above mention subject below are full details provided.

    I have been working with this firm (LLC) from last 10 years on limited contract. my labor contract completed on 23.02.2016 and I have been intimated on 03.03.2016 that company is not renewing my contract with immediate effect and therefore told me that 03.03.2016 will be my last working day.

    My question i whether i must be paid 3 month pay (breach of contract and i have worked upto 03.03.2016 9 days after completing contract) or i will only get paid gratuity and leave salary.

    Kindly advice me at the earliest so that I can claim my dues from the company.

    Thanks & Regards
    Anees Ahmed

  74. Hello
    I Would like to ask do I have to pay 45 days salary if i resign in limted contract even after completion of 2 years?
    Is there any ban in limted contract even after completing 2 years?

  75. Hi,
    I just want to ask about my contract coz i want to resign to my current job..i start to them by October 2015..Im working as cleaner..My salary is 1600 which include everything my room,food allowance,transportation,my basic salary is 500 only..Do i have a right to resign and find another job here in UAE?Without ban.
    HOPE I CAN GET A BETTER ANSWER..
    THANK YOU..

  76. Dear Deepak,

    what is the important of Basic Salary in Limited contract. What are the issues regarding

  77. My limited contract with the company has been expired on 14 Jan 2016. I gone for a vacation on 22 Jan 2016 with out renew the contract. I came back 20 Feb 2016. My visa will be expire on 13 march 2016. Is there any fine imposed from Labour office?

    Can I refuse to sign the renewal of contract if it already applied from company?

  78. Dear Mr. Deepak,

    You are doing a wonder job. Please advise on my query… My company when i joined it was unlimited now its limited Iam working in this company from 2011 5 years 8 months. It means in the same company which is limited contract now in a renewed visa 8 months i completed. Iam going to resign today. I got the job in Jafza FZE 12+ salary. Do i get a ban? Do i need to pay my visa cost to current company? Do i get my complete Gratuity? Kindly advise by today itself. Thank you sir…

  79. Hi Deepak

    I signed a two year limited contract with a company in Feb 2012 valid until Feb 2014 after this I did not sign a new contract but the visa was renewed and continued working until Nov 2015 (Total 3.8 yrs) then resigned with 30 days + 18 extra days notice until mid Dec. The company now says I have to pay them 45 days compensation, is this accurate? The unlimited labor contract signed in 2012 states valid for 2 years plus 1 year automatic extension hence can you advise me that the compensation is valid by my company?

    Appreciate your advise.

    Thanks, Joel.

  80. Hi,
    I work for limited contract from last June 2014, I have resigned to my services with a noticed liable on the basis of terms of employment which was given as confidential during the time of employment, from employer.

    After notice of 11 days, I was given a mail of reply, saying notice period of 90 days.

    Will I proceed to prosecution basing on employment terms, from employer.

    Reply,

  81. Hi sir deepak.. i would just like to ask, i am currently working in private company in abu dhabi 2yrs limited contract, i joined february 17, 2014. I was hired from Philippines through agency. My question is..1. Do i need to exit after my contract to enter new one? 2. Do i need to render 30 days notice? 3. Will i receive gratuity? Thank u very much.

  82. Hi,
    Mr.Deepak
    i want to ask that i joined one company in dubai on 13 december last year and they terminate me on 17 january this year and they make limited contract but contract is not in MOL record and my visa was not stamp in pasport now i am getting job in free zone and they are not giving me salary for 17 days and making stories and delay in visa cancellation please advice me what i have to do againat them?

  83. What are the minimum wage rates for labor and under which article these are mentioned?

  84. hi deepak
    i am into a limited contract and wish to resign after 18 months of service, my manager said they are goin to impose one year labour ban
    now my new employer has free zone license is it possible for free zone people to lift one year ban, coz they said they can lift 6 months ban but 1 year ban is a critical one.
    pls advise i really in difficult situation.

  85. Hi Mr. DEEPAK,

    good day to you! I have question .. I’ve work in th coffee shop my problem is 2 months after my entry on my employment visa i don’t have any contract or residents id. Im planning to complaint them in labor. Or i get banned without any contract and resident s visa. ? Only 2 months i work in this company.

    • Dear Deepak,

      Hope you are doing well. My contract is limited one and I am in this job since 26th January 2015 and almost completed 1.4 years (less than 2 years). Now I want to resign with 30 days notice period and want to ask followings:

      1. I am told I will have to pay 45 days salary compensation. I want to ask if I work for 30 days notice then I will have to pay that cost?
      2. Can I receive my 30 days notice period salary.
      3. My 10 annual leaves are in balance, so can I get salary for these days and my air ticket as i was promised to receive air ticket after completing one year.

      Thanks & Regards

  86. Dear Deepak,

    I am working at a staff nurse for a company under limitted contract of one . I’ve been working for 3months. Now i have offered a job from govt oil corporation as health officer. If i break this limited contract for accepting the new govt job . Would they impose labor ban?

  87. Hello Mr. Deepak

    i’m here in dubai and i’m working now in my company within 1 year under 2 years contract and my basic salary 1250 dhs., my plan is to give my 1 month notice to my employer and leave the company, my question is…

    1.) Do i pay any charges to the employer ?
    2.) They will give my Annual Leave Payment ?
    3.) or They will give my gratuity ?

    please answer my question. i need to know because i will pass my 1 month notice to my company.
    Thank you!!

  88. Hi Deepak,

    I am working under limited contract of 2 years , as a Civil Engineer. My contract salary is 10,000AED .However they are paying only 7500 AED . Apart from these they are holding my salaries for 1-2 months. Due to this personnel harasmment I resigned from the job after completing 1 year of joining the company ( visa stamped 2 months later ) .I want to know the following .
    1. Will I face Ban ?
    2. Should i need to Pay the compensation ?
    3. How can I get the pending salaries ?
    4. Am i eligble for any benefits .gratuity /leave salary ?

    Thank You

  89. Dear deepak . .
    I am working in a private company from the past 3 yrs 8 months. It is mentioned in the contract that i hav to serve one month notice on resigning.
    I hav got a gud offer from a governmnt company in dubai and i want to give 24 hr resignation since
    I hav my weddin . Could you suggest wat can i do.
    I also want to ask does gov companies require clearance letter from old company.

  90. Hi deepak.. Good day to u..

    I am working in one company in RAK under 3 year limited contract, now I got a job in DEWA and I has been resigned giving a 1 month notice period (I just completed 2 yrs and 9 months), my problem is today my official notice period completed but there is no response from my current employer, please advise, shall I file a complaint in MOL, my committed joining date in DEWA is 12.12.15 is, right one month from today. Is it required to pay 45 days salary for breaking the limited contract, kindly advise

  91. Hi Deepak,

    Awesome job on this Blog, 🙂

    I resigned under a limited contract and HR told me that they will impose a one year ban.
    My question is, Can a One year ban be lifted? and what are the grounds for it to be lifted?
    Also, I gave them a notice period of 1 month, am I still required to pay them 45days of my salary?

    Thank you so much in advance for your prompt response

    • I have the same situation. And Im worried about the one year ban the employer will impose. Hope someone will help us to know is there any way to lift the ban.

  92. Dear Deepak,
    Good day!
    I am under limited contract and resigned after 1 yr and 2 months the company told me they will give me 1 yr ban after cancellation
    1. When do i need to exit from UAE?
    2. Can i go back inside UAE right after i exit?
    3. Can I work under immigration visa or can i have husband visa right after?
    Thanks and godbless

  93. Hi deepak,i have worked for 3 years in a freezone company.1 month ago i renewed my contract and i have found another job.if i resign now can i get a ban?

  94. Hi deepak,
    Good day, i hope u wil help me with my query.
    1. My wife is working in dubai since 3 months in a non free zone company. Will there is a ban for her if she resign?
    2. As i hv checked in internet they say there wil be 1 year labour ban. So if there is a ban how we can lift the ban.
    3. She is ready to pay all the visa and other expences after the resignation will there will be an immigration ban for her?
    4. After she exit from UAE is it possible to bring her back on husband sponcership to abidhabi.?
    5. She is post graduate.
    Please help me with my confusion..

  95. Hello Mr. Deepak,

    I finished working under limited contract last Sept. 28, 2015 and provided and served 1 month notice as per the requirement of my company. But until now the company refused to give my last salary and gratuity as they found some pending works AFTER I leave the company which they have only informed me today October 20, 2015 ( after more than two weeks) as a reason for non payment of my dues.

    Will that be a ground of non payment of my gratuity if i will refused to do it?? Since there is no written warning or complain during the duration of my contract and only now that my contract has expired and refused to renew my contract that have these complains against me.

    thank you.

  96. Dear Deepak,

    Good day to you, i hope you can help me with my issues.

    I am currently employed under limited contract in abu dhabi for 1 year and 5 months already, my employer gave me an Ordinary Labourer visa. But My work is actually a reliever in an oil and gas company. I am working as a secretary/ document controller. My question is :

    1. If I transfer into another company, and they are offering me 7000 aed per month, can I lift my ban? I have my documents attested already. I am a bachelor’s degree holder.

    2. The company that I am transferring to is an Oil and Gas company also, but I believed that I will be under a contracting company.

    Kindly advise me please. Thank you and have a good day!

      • Dear Deepak ,

        you are such a wonderful person . MAy God Bless you .
        plz answer a few questions ,
        1.How would i know that my contract is Limited or unlimited , my visa is valid for 2 years .
        2.I need to switch my job but i am afraid of 6 months ban , i’ve already spend 10 months on current job , sometimes MOL tells that u can change ur visa after completion of 1 year and somewhere on the internet it is written that u have to complete whole 2 years .
        3.Sometimes MOL says that if your employer himself cancels ur vissa then there will be no ban .
        4 . The new rule regarding this “766” is to be implemented in January but someone told me that it has been postponed .
        i Have done 2 years graduation .

  97. Good day! I am a HAAD Registered Nurse and I am with my company for 6 months now. I would like to resign but they said that I should pay 45 days worth of my income with the visa costs, medical malpractice insurance and HAAD penalty which I dont understand. Should I really pay for the other costs especially the one for residency visa when I resign? Thank you!

    • Kate,
      If it is mentioned in your contract yes. If you have limited contract also you must pay 45 day salary.

  98. Hello deepak,
    Thank for time and efforts,
    Im in limitted contract of 2 years in a private company in dubai and im willing to resign after spending 10 month in the company, and my visa as follow up clerck

    I found a job with semi gov company in abu dhabi so my questions are:

    1- do i get a ban if i shift now?
    2-im gonna register as engineer and they will offer me 12k (bachelors in engineering) do i still get a ban?
    3-what kind of proceedure and papers should take from the company

  99. Hi,

    i am working under limited contract for 1 year and i am planning to resign. my question is, i haven’t avail my one month leave for the first year that i am working in this company and i would like to ask if they should pay for my leave even if i am resigning to my work.

  100. I work under limited visa. Now it has been 10 months of job completion. 1. DO i need to pay any compensation if I resign my job. 2. Will I get any settlement for my leaves accumulated?

  101. Hi,

    I am working for organization since last 8 years, and i am working under Limited contract and with my husband sponsorship, i have labour card from the orgianzation which iam working, i wish to resign now…also i am giving 30days notice period, do i have any issue in labour ban?? and i need to pay any compensation to organization..

    Pls help..

    • Joe,
      I don’t think after such a long service, labour ban should apply to you.
      But please speak to your company HR and MOL.

  102. Hi,

    I am working in sharjah under husband’s visa and my contract is limited for 2 yrs.I want to know if the employer terminates me before the contract period will i get 3 month remuneration and gratuity.

    I am in this company for 1yr and 4 month till date.

  103. Hello,
    My contract is for 2 years but the expiry date on my emirates id indicates 3 years of visa. I am willing to resign now its been 1 year and two month working here. I guess my visa is immigration visa so do i need to pay charges to employer.

  104. Hi! good day Deepak ! How are you ? Hope you doing good .
    I am working for 2 years at present in one of company here in dubai.
    I already renewed my visa under limited contract .
    I am planning not to continue after 6months or after 1year of my contract .
    So my question is ..

    1) if i cancel my visa after 6months or 1 year, i can get a ban?
    2) how many months it would be if there is a ban ?
    3)what should i do so i can transfer to a new employer ?
    4)should i pay for employer if i resign after 6months or 1year of my renewed visa ?

  105. Sir what if in limeted contract they termenate and they didnt pay your binefits l8ke 3 months and gradualty?

  106. Hi deepak,
    I just want to ask cause I’m working in limited contract working for four months then I resign my employer is telling me that he will give me a problem , he also treathen me that he knows someone that can give me a problem that I will regret, he is taking it personally. What should I do!? Is this will lead to a permanent ban the he can imposed to me!?

    Please help.. Verbally and mentally I’m abuse. Every time he get mad at me.

  107. Dear Deepak,

    Its a great help that you are providing through this blog!!!

    I am an Indian mechanical engineer(Certificate attested) currently working in a LLC company in UAE as Follow-up clerk profession in visa under Limited contract and 1.5 years completed . This is my relative’s company. I got another opportunity with a LLC company in the better position and increased salary( 7000 AED) . My current company is ready to leave me without 1 year ban and also they can give me NOC .But when I enquired with MOL 6 months automatic ban will be applicable for me. So my doubts are:

    1) Will my hiring company can take my visa by lifting my 6 months automatic ban using MOC or Engineer Profession?

    2)Is it possible to change from lower profession to engineering profession?

    3)After cancelling my current is it required to deport to take new visa or Pre-approval and cancellation possible?

    I think lot of readers here also have the same doubts and if you can answer this it will be a great help…..

    3)

    • Shirin,
      Thank you for the kind words.
      1. Usually engineers do not face labour ban.
      2. Yes.
      3. Not sure whether I understand this query!!

  108. Hi.. thank you for the clarification. but still I have question about my niece situation for limited contract, in her contract written the contract will be expired 22 Nov 2016, how she will submit the resignation letter one month ahead before the expiration of the contract? after 22 Nov 2016 or after her cancelation of her residence is she have a month extension to find another employer? has an employee have right to choice where she wants to exit not in Philippines but in oman or kish.?

    Thank you.

    • Maria,
      She will have to provide written notice of resignation.
      The visa should be cancelled after the notice period is done.
      And she could stay for up to 30 days after cancellation of visa.

  109. Hi. I am under limited contract company (2 years) i am newly in the company im 2 months work in company, and i am under 6 months probationary so the reason why im leaving in my company is he did not gave me a everyday work i am under cleaning company and the salary are not follow. so i need to go home in my country. if it possible that i pay all expenses that my company gave me like visa or something and its true that if u are resign early u gave to your company 5-6k drhms for all??? Thank you for answering my message. 😀

  110. Hi!! I just want to be clear regarding the limited contract of my niece, her contract will be finish by next year on 22 Nov 2016, I just want to know if she don’t want to renew her contract she will be have a face problem to her employer? her one month notice is she require to work for this? if the one notice was finish and she cannot get new employer, it is possible to her to exit in kish or in oman to have new visit visa than to went home to home country?

  111. i am working here under limited contract.my contract will finish on 35 november 2016,
    my questions are
    if employer give me noc will i face ban ???
    if employer cancel me will i face ban ???
    if i resign will i face ban ???
    kindly give me this information

  112. Hi, i am bit confused after reading article 120 of labour law and wanted to clear this , if you can help me out,

    in free zone authority DSO under limited contract, if employer terminates an employee he will have to pay three month compensation, what if he serves 30 days notice period?

    does 30 days notice period exempt him from paying three month salary or notice period doesn’t make any difference and even after giving 30 days notice period he ll have to Pay three month salary under limited contract.

    advise please?

  113. Dear Mr.Deepak.

    I am under limited contract , and wish to leave the company before my contract ends , renewed contract (2nd term ends in March 2016 ),

    what benefits I will get after I resigned ? or I am the one will pay in the company.?

  114. 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?

  115. 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.

  116. 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.

  117. 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?

  118. 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?

  119. 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?

  120. 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.

  121. 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!

  122. 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)

  123. 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.

  124. 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.

  125. 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

  126. 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

  127. 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

  128. 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.

  129. 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.

  130. 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.

  131. 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.

  132. 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.

  133. 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.

  134. 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.

  135. 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.

  136. 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

  137. 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

  138. 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

  139. 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

  140. 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

  141. 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.

  142. 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

  143. 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.

  144. 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.

  145. 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.

  146. 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

  147. 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.

  148. 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

  149. 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.

  150. 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

  151. 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

  152. 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

  153. 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

  154. 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.”

  155. 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.

  156. 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.

  157. 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. “

  158. 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?

  159. 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.

  160. 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.

  161. 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.

  162. 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…..

  163. 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.

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