Termination of limited term contracts by the employee and its effects

Dr N.

Thanks for writing to me. I understand that you want to terminate the limited term contract you have signed with your employer before the expiry and after completing three years of service.

As you are aware, a limited term contract is a fixed term contract and is normally linked to the duration of the UAE residency visa (i.e. two or three years, depending on the location of the employer).

It will automatically terminate at the end of the term unless terminated earlier by either party or renewed by both parties.

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 [Article 116].

I would like to see your employment contract for a definite answer. Please send the same to my email.

Thank you.

Regards,

Rajasree Ravivarma

+971585103663