What is the difference between an unlimited contract and a limited contract?

A fixed-term contract usually expires within the period agreed upon in the contract unless it is renewed by the employer based on a mutual agreement with the employee.

On the other hand, an indefinite contract is not limited to a specific period of time and can be terminated by the employee or employer, provided that a 30-day notice period is given.

Dear User,

An unlimited contract refers to an employment contract with no time duration and is regarded as more flexible due to the mutual agreement of its termination.

An employee may resign by providing the employer with the contractual notice period (minimum of 30 days, or longer according to the employment contract).

A limited contract is a fixed-term contract, usually the same duration as your residency in the UAE.

Unless otherwise stated in the employment contract, if the employee wishes to terminate the contract before the expiry, he will be liable under the UAE Labor Law to pay the employer.

This contract is mainly used in instances where the employer needs employees for a specific project or limited time.

Regards.