The UAE labour law on unlimited contract is an important aspect that employers and employees in the country should be well-versed in. This type of contract is commonly used for those who are looking for long-term employment in the UAE.
An unlimited contract is a type of employment contract that has no end date. The employee is employed for an indefinite period, and the contract can only be terminated by mutual agreement, resignation, or termination for cause.
Under the UAE labour law, employers cannot terminate an unlimited contract without a valid reason. The law states that employers must provide a valid notice period to their employees before terminating their contract. The notice period for unlimited contracts is 30 days.
If an employer terminates an employee without a valid reason or without providing the required notice period, the employee has the right to file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The MOHRE will investigate the matter, and if they find that the employer has violated the labour law, they will impose penalties on the employer.
Employees under an unlimited contract are entitled to end-of-service benefits after they complete one year of continuous service with their employer. These benefits include a gratuity payment, which is calculated based on the employee`s basic salary and length of service. The gratuity payment is equivalent to 21 days` basic pay for each year of service for the first five years, and 30 days` basic pay for each subsequent year.
Employees under an unlimited contract are also entitled to annual leave, sick leave, and public holidays. The annual leave entitlement is 30 days for those who have worked with the same employer for one year or more. The sick leave entitlement is 90 days for those who have completed three months of continuous service with their employer.
In conclusion, being familiar with the UAE labour law on unlimited contracts is crucial for both employers and employees. Employers must follow the rules and regulations set by the MOHRE to avoid any legal disputes and penalties. Employees must also be aware of their rights under an unlimited contract to ensure that they are not being exploited by their employers. Ultimately, a transparent and fair employment relationship benefits both parties in the long run.