If you are an expat living and working in the UAE, then it is important for you to understand the rules of unlimited contract in the country. An unlimited contract is a type of employment contract that is not limited by a specific duration and can be terminated by either party with notice. In this article, we will discuss the rules and regulations surrounding unlimited contracts in the UAE.
1. Termination of Contract
One of the main benefits of an unlimited contract is that it can be terminated by either the employer or employee with notice. The notice period usually ranges from one month to three months, depending on the employment contract and the company policy. However, if the contract is terminated without notice, then the party that terminates the contract may have to pay compensation to the other party.
2. Probation Period
In the UAE, most companies have a probation period for new employees. The duration of the probation period varies from six months to one year, depending on the company policy. During the probation period, either party can terminate the employment contract without notice. However, if the employer terminates the contract during the probation period, they will not have to pay any compensation to the employee.
3. Working Hours and Overtime
The UAE Labor Law states that the maximum working hours for an employee should not exceed eight hours per day (or 48 hours per week). Any additional work hours will be considered as overtime, which the employee should be compensated for at a rate of at least 25% of their basic salary. However, some companies may offer an overtime rate higher than that.
4. Annual Leave
Employees on an unlimited contract are entitled to annual leave, which is usually calculated based on the number of years they have worked for the company. Employees who have worked for less than a year are usually entitled to two days of leave per month. However, employees who have worked for more than a year are entitled to 30 days of annual leave. This leave can be taken as per company policy.
5. End of Service Benefits
When an employee on an unlimited contract resigns or is terminated, they are entitled to end of service benefits. These benefits are calculated based on the employee`s basic salary and the number of years they have worked for the company. The end of service benefits include payment for any unused annual leave, gratuity pay, and other benefits as per company policy.
In conclusion, the rules of unlimited contract in the UAE provide a lot of benefits and protection to expat workers. It is important to understand these rules and regulations before signing an unlimited contract and to ensure that you are aware of your rights and responsibilities as an employee in the UAE.