The notice period in limited and unlimited contracts on resignation and termination

Dear questioner,

Thanks for writing to me.

First of all my sincere apologies for the late response!

Before answering the question, it is important to understand the concept of limited and unlimited employment contracts under UAE labor law.

A limited-term contract is a fixed-term contract and is normally linked to the duration of the UAE residency visa. It will automatically terminate at the end of the term unless terminated earlier by either party or renewed by both parties.

In a limited contract, the pre-mature termination shall be on mutual consent. There is no concept of a notice period in a limited contract, still, the employer may apply 30 days - 3 months notice period upon pre-mature termination.

An unlimited term contract is open-ended and may be terminated for various reasons under the UAE Labour Law. Article 117 of the UAE Federal Labor Law provides that the employer or the employee who wishes to terminate a contract concluded for an unlimited/unspecified term, should give to the other party a notice in writing at least 30 days prior to termination.

However, the period of notice may exceed 30 days in case the parties have agreed to increase that period in the employment contract.

Hope the above explanation is satisfactory. Please feel free to write to me if you need any further clarification.

Thank You!

Regards,

Rajasree Ravivarma