Reader Mail Bag: When can the contract be terminated?

Termination of labor contract

A reader from Dubai asks:

When can an Employment Contract be terminated either by employee or employer?

A contract is a legal document/agreement that binds at least two parties to one another. When creating a contractual relationship, both parties are subject to fulfill the terms and conditions of the contract. Most contracts end when the validity period of the contract has expired, and in many cases the contracts are renegotiated and renewed.

As per the Article (113) of UAE Labour Law the employment contract is deemed to be terminated in any of the following cases:

• The employment contract may be terminated if both parties agree to cancel a contract provided that employee consents to this in writing.
• The contract can be terminated if the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the rules of the law.
• At the opinion of either party in unlimited contracts provided that the provisions of this Law regarding warning and acceptable causes for termination of the contract without abuse are fully complied with.

Employees may terminate their contract by resigning or an employer may terminate contract by dismissing an employee. If an employee feels that he has been discriminated against or has not been treated according to the law or company policy, he can terminate the contract by taking assistance from Labour.

In many situations, termination of agreement, may be the only option, and if you are experiencing the same it is always better to seek the necessary legal advice and help form Law.