In summary, a Limited Contract in the UAE Labour means that your contract has a start date and an end date which usually runs for 2 years (maximum). In terms of your fulfilling your role and responsibilities as an employee, you are required to fulfill your duties until the end date.
What is a Limited Empoyment Contract?
Based on personal experience, I used to work under a Limited Contract from my UAE-registered company. I was working a sales rep in a retail shop inside a mall and I was obligated to continue my duties for two years. If you are wondering what are your options if you have this type of contract and you want to transfer to another company, you can only transfer to a company under a free zone or government.
If you break the Limited contract by resigning from your job, you may get a labour ban that could last up to one year. In order to get rid of this labour ban, you can try to find a job that would require you to have a minimum salary of 5000 Dirhams and submit a high school diploma. Learn more about getting rid of the labour bans here – Lifting UAE Labour Ban
UPDATE on Cancelling 6 Months Labour Ban
If both the employer and employee decide to terminate the contract, the 6 months ban can be cancelled. This is according to an update from MOL. Read more about it here.
Reminder to everyone: Make sure that you read your labour contract as that is your official agreement with your employer. Info above serves a general guideline. For any specific cases, you should read your contract properly before signing it. If you have any issues with it, then you need to contact authorities assigned or seek legal counsel.
FAQs about Limited Contract
If you have some questions about this type of contract, there’s a detailed post of Q&A on EmiratesDiary.com, check it out here – What is a Limited Contract? | Emirates Diary
For a full coverage of the UAE Labour Law, it is best to visit the Ministry of Labour website and read the document. You can check it out here – UAE Labour Law
Helpful Articles Regarding UAE Labour:
- What is a Limited Contract?
- What is an Unlimited Contract?
- How to Lift UAE Labour Ban?
- How to View Your UAE Labour Contract Online
- Difference Between Limited and Unlimited Contract
- Types of UAE Ban (Labour Ban-6 Months Ban, One Year Ban, Immigration Ban)