Q: If an employee breaks his limited contract after 5 years and 9 months, does he need to pay 45 days' salary to the company? A: If you breach the terms of your limited employment contract (i.e. early termination), then you may be liable to compensate the employer for early termination…

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Penalty for terminating a limited contract by the employee after five years

If an employee breaks his limited contract after 5 years and 9 months, does he need to pay 45 days' salary to the company?

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Brett Michael Westernoff

Elnaggar & Partners

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5 Nov 2019, 13:05

If you breach the terms of your limited employment contract (i.e. early termination), then you may be liable to compensate the employer for early termination.

I would need to review your employment contract to give you a definitive answer.

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Nikhat Sardar Khan

Kochhar & Co Inc. Legal Consultants (Dubai Branch)

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5 Nov 2019, 14:23

Yes.

5 Nov 2019, 16:18

Why does he need to pay 45 days?

I heard from other people that he needs to pay 30 days' salary only.

6 Nov 2019, 09:47

If your contract is limited, it is 45 days for breaking it.

If your contract is unlimited, you just need to give the notice as per the notice period mentioned and no other payment.

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Penalty for terminating a limited contract by the employee after five years