The term of notice period in a limited employment contract

Under the UAE Labour Law, an employee is entitled to “early termination compensation” of a minimum of three months’ remuneration, including salary and allowances (or the remainder of the term of the contract if the period remaining is less than three months), if an employer seeks to terminate the contract prior to the end of the limited term.

Unless the employment contract provides otherwise, if the employee wishes to terminate the limited term contract before the expiry of the term, he will be liable under the UAE Labour Law to pay the employer “early termination compensation” of half of three months’ remuneration, including salary and allowances, or half of the remuneration for the residual period if the contract has fewer than three months to run.

Where notice is provided for in a limited term contract, this will have to be provided to the other party in addition to any early termination compensation due.