Questions & Answers
Repercussions of terminating a limited employment contract by the employer
Hello Rajasree,
I am on a limited-term employment contract. If the employer terminates my contract without any cause, is he liable to pay me a breach of contract penalty of 3 months gross salary?
Please advise
Dear Questioner,
Thank you for writing to me. Please note Article 115 of the UAE Labour Law which gives a clear answer to such situations:
"Where an employment contract is for a definite term and the employer revokes it for reasons other than those specified in Article (120) he shall be required to compensate the worker for any damage the latter sustains, provided that the amount of compensation shall in no case exceed the aggregate wage due for a period of three months or the remaining period of the contract, whichever is shorter unless otherwise stipulated in the contract."
Regards,
Rajasree Ravivarma
