The Difference Between "Limited" And "Unlimited Contract" In The UAE Law.

Disclamer: Please be advised that the article below is based on my experience and may vary depending on the situation. It is always best to contact your HR Department, Ministry of Labour (MOL), or Freezone Authorities depending on your employment status. The information below is an account of a person's experience in the company she is working for. This ONLY serves as a GUIDE for awareness and not to be used as a reference in legal cases.

I’ve been pretty much burnt out at work lately. I got up early, went home late, skipped lunch, it was really incredibly BUSY and the worst thing is that you've got to have to deal with difficult people every single day. Sometimes, I just felt like I'm gonna quit too soon. I don't get any excitement feeling to come to work anymore these days and feeling lame to do the same routine. On top of that, I don't have time to visit my little corner in the web and writes a blog. I've actually love the nature of my job but lately the workload is overflowing. Seriously, I don't do magic, I'm not even a superwoman. Trust me working abroad was never been easy. And just because I play a big responsibility in the family who needs me back home, I was really tempted to look for something else probably better opportunity and this was the time I found out that I can get an automatic ban if I decided to leave the company before my contract ends.

So what is the difference between Limited and Unlimited Contract in the UAE Law?

LIMITED CONTRACT:

• You are tied to the company for 2 years. If you resign before the contract expires, you will have an AUTOMATIC labor ban by UAE for 6 months.
• Also, your employer can ban you up to 6 months.
• You cannot transfer to other companies within your contract.

So basically, you are stuck to your employer. The only option for you to get out (if you want to resign) is to find a job within FREEZONE Company or work in a GOVERNMENT-owned Sector as these are exempted from any UAE Law Ban.

UNLIMITED CONTRACT:

• You are tied to the company for 2 years. If you resign you will have an AUTOMATIC labor ban by UAE for 6 months.
• Also, your employer can ban you up to 6 months.
• You can transfer to any other companies SO LONG AS your salary is at least 5000 Dirhams (if you’re a High School Diploma holder), but if you’re holding a “Bachelor’s Degree Diploma” you have to get a salary at least 12000 Dirhams. (I know it’s a bit agonising). This means that you can transfer if there is a better offer/opportunity elsewhere. And you can still go to a FREEZONE Company or work in a GOVERNMENT-owned Business. The difference between the two is not that much. 

So the only option for me (in case I switch job) and in order to lift my ban is to search for a FREEZONE Companies or Government-owned. Or any company will do so long as the salary package is at least (12000 Dirhams) bracket since I'm a Degree holder. But I don't wanna rush things and will not take a risk! I am still thankful that I got a decent job as I can read other people's blog and to some who has difficulty in getting a job in the UAE.

Meanwhile, I just gotta need to learn to have longer patience and a matter of perseverance as what every Filipino's tells me when I share my story. Include it with “Be thankful and be kind always".

For UAE Labor Law inquiries, call toll free 800-655.