Early termination in limited contracts: Advantages and disadvantages

Dear Questioner,

According to UAE labor law, a limited contract cannot be terminated before its expiration date unless both parties (the employer and employee) agree to terminate it.

If the employee wishes to terminate the contract before its expiration, they must provide a valid reason and obtain the employer's consent.

The advantages of terminating the contract before 6 months may include finding a better job opportunity or personal reasons.

However, the employee may face penalties or have to pay compensation to the employer for breaking the contract.

After 6 months, the employee can request a mutual termination of the contract without any penalties. This may be beneficial for both parties as it allows for a smoother transition and avoids any legal complications.

However, if the employer does not agree to the mutual termination, the employee may still face penalties for breaking the contract.

In conclusion, it is best to discuss with your employer and come to a mutual agreement for termination, whether it is before or after 6 months.

Breaking a limited contract without mutual consent can have legal and financial consequences.

Dear Questioner,

If you are still in the trial period, during the probationary period, either party to the employment contract may terminate it.

If the worker leaves work on their own during the probationary period, they are not entitled to any entitlements for the period of the employment contract without prior notice or end-of-service gratuity.

But after the trial period, you have to warn the other party in writing. Continue to execute the contract during the warning period, which must not be less than one month and not exceed three months.

Dear Questioner,

If you leave before six months, then you will have to pay visa expenses and compensation also.

But if you leave after 6 months of probation, then it is fine.

Dear questioner,

If this is regarding an employment contract and you are leaving the job to join another company in the UAE within 6 months, then there will be no trouble.

Otherwise, there are chances of a labor ban. If you are leaving the job after 6 months, you need to pay compensation including visa costs to the company.

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

There may be charges if you terminate your restricted contract in the UAE before the six-month mark. Cancellation after six months may provide stability with fewer legal ramifications.

Consult with us for individualized help after reviewing your contract from here: UAE employment contract review + One-hour advice session

For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will be happy to help you.

Thanks & Regards,

ABDUL WAHIED