How can you exit a limited-term contract before the end of its term

Dear Questioner,

Thank You for writing to me.

Since it is a definite term contract, you are liable to compensate your employer with an amount equivalent to 45 days' salary. This is in accordance with Article 116 which states as follows:-

"If the contract has been terminated on part of the employee, for reasons other than those provided for under Article (121) hereof, the employee becomes liable for compensating the employer against losses incurred by him in consequence of contract termination, provided that the amount of compensation, may not exceed half a month's pay for a period of three months or for the remaining period of contract whichever is shorter unless the terms of the contract provide otherwise."

In addition to this, you shall pay compensation in lieu of notice if you are unable to serve the period prescribed [if any] in the employment contract. This is in accordance with Article 119 of UAE Labor Law which states as follows-

"If the employer or the employee has failed to serve notice to the other party for termination of the contract or has reduced the notice period, the party obliged to serve the notice shall pay to the other party an indemnity called "Compensation in lieu of notice", and it is incurred by the other party as a result of failure to give notice or for reduction of said period, and the indemnity shall be equal to the employee's pay for the notice period in full or in proportion to the diminished part"

Please feel free to reach out to me if you need any further clarification.

Thank you.

Regards,

Rajasree Ravivarma