Generally, people start a job with high expectations. But, sometimes things do not go as well as you hoped. It can also happen that, in the job you have, you do not feel very comfortable. In both cases, you have already signed an unlimited contract; and you are probably wondering if you can resign after you have signed.
In this article, we are going to teach you all the information you need to quit your job; even though you have an unlimited contract. The first thing will be to define exactly what an unlimited contract is. Then, we will tell you in detail how you can get out of a contract, both as an employer and as an employee. In particular, we will talk about:
- What is an unlimited contract in UAE?
- What are the conditions that your boss must meet to terminate your contract?
- How can you resign with an unlimited contract in UAE?
- What is a limited contract in UAE?
- What is the notice period for a limited contract in UAE?
- How can I resign with a limited contract in UAE?
- At EOR Middle East, we offer you all the advice you need to resign from an unlimited contract
1. What is an unlimited contract in UAE?
The unlimited contract will be valid for an indefinite period from the start of work. This type of contract can be terminated for different reasons according to the UAE Labor Law. Unlimited contracts are widely used thanks to the great benefits they give to the worker in question.
Unlimited contracts usually last until the moment one decides to terminate them. However, the company can also terminate an unlimited contract or both parties reach an agreement. This indicates that this type of contract can be terminated if one of the parties is not satisfied with the current situation.
The modality of the unlimited contract may change according to the agreement reached in principle. This means that a full-time job does not necessarily have to be an unlimited contract. You can observe unlimited contracts for part-time jobs and even discontinuous ones throughout the year.
Unlike limited contracts, unlimited contracts are used more frequently in the UAE. This is because they are considered more flexible and easier to use, giving more benefits to employees. They are generally used for those employees who are meant to be permanent and do not do project work.
2. What are the conditions that your boss must meet to terminate your contract?
Certain things are important to know when dealing with an unlimited-time contract. Especially, as a company manager. In this section, you will see how you can complete the unlimited contract for an employee; and other things you should know if you want to terminate an employee with an unlimited contract.
2.1 Conditions to include in an unlimited contract
It is important that when you are going to hire an employee using an unlimited-duration contract; there are conditions that you must place compulsorily following the labor law in the UAE. These conditions will be named below.
- The first thing is to put the date on which the contract was signed.
- Then, the date on which the person starts the job must be entered.
- The position you are going to employ in the company. You must be very specific in your functions.
- What will be your place of work in the company?
- Finally, the amount of your salary.
2.2 How to terminate an unlimited contract UAE 2022 as an employer?
Since you know everything that an unlimited contract in the UAE 2022 must-have. According to the UAE labor law 2022, there are only two main methods for a company head to terminate an unlimited contract. These conditions are mentioned below.
- The first is, you need a valid reason. For instance, employee job performance. It is important to mention that a 30-day notice must be given.
- The second is when the employee commits one of the 11 acts of gross misconduct. For instance, arriving drunk at your workplace This is established in two articles of the UAE labor law. Surely, you are wondering if an unlimited contract resignation during probation time is possible. The answer is yes, when any of these actions are committed, that employee can be automatically terminated.
2.3 Liquidation that the employer must deliver to the employee if he terminates him
- The first applies when you are in the first 5 years working and will be the basic salary of 21 working days per year.
- The second is when you have been in the company for more than 5 years. A minimum salary of 30 days is granted for the extra years you were working. This will be when the total payments do not exceed two years of salary.
It is important to clarify that if the employee was terminated for one of the 11 actions of serious misconduct; the company head is not obliged to pay a settlement due to the seriousness of the problem. Therefore, the employee loses all the right to his liquidation.
3. How can you resign with an unlimited contract in UAE?
If as an employee you are not comfortable with your work, but you signed an unlimited contract; Surely, you will ask yourself “can I resign during the probation period from an unlimited contract” or “can I resign from an unlimited contract”. Below you will see the answer to these questions.
- Any employee has the right to resign under an unlimited contract. But, thanks to the update of the unlimited contract resignation UAE 2020. You must provide the company head with a notice period of at least 30 days. Unless otherwise stated in the contract.
- According to the new UAE labor law resignation 2022, specifically article 121; you have the right to resign your position without giving prior notice.
If you are part of the people who ask, “if can I resign after 6 months in an unlimited contract”, you should know that the answer is yes. But, you should keep in mind that you have to give the notice period to your employer.
3.1 Termination of the employee when he resigns
Whenever an employee resigns from the job after signing an unlimited contract; you have the right to receive a settlement following the following conditions.
- If you were working for one to three years, you get a two-third reduction.
- If, on the other hand, their time in the company was between three and five years, it is only reduced by a third.
- But, if the employee was working for more than five years, he does not receive any reduction.
4. What is a limited contract in UAE?
As the name indicates, a limited contract is a contract that has a valid duration. The duration of the contract may not exceed three years and will begin to be effective from the date set. However, this can be repeated or renewed by the employer as many times as necessary. The company to have legal services so that everything is correct.
Due to the new labor regulation, you can observe that the private sector will only hire personnel under limited contracts. Previously there were limited and unlimited contracts and with the latter, there was no completion date. In this way, companies are forced to constantly repeat or renew their employees’ contracts.
A question that frequently arises in this situation is whether it is possible to resign before the established time. This question arises because many people feel dissatisfied with their job. So, having a contract to fulfill, they do not know if they can terminate it before the time that was established in principle.
A limited contract in UAE can be terminated as long as the parties agree to this decision. Not only the worker can cancel the contract, but also the employer if they are not comfortable. There is a specific time that must be respected to carry out this procedure and must be met to avoid problems.
5. What is the notice period for a limited contract in UAE?
It has been said that for an employee to terminate an unlimited contract, they must give a notice period. Surely, you are wondering what that means. This refers to the fact that you must notify your employer sometime before what was initially agreed in the contract, that you want to leave your job.
But, in this case, we are not talking about an unlimited contract, but a limited one. The main characteristic of these contracts is that they have a time limit on the job. This time can be increased after the deadline. If the employer wishes, he can offer the employee a renewal of his contract.
Knowing that a UAE limited contract notice period is when the employer notifies the employee that they want to terminate their contract before the agreed time. A notice period can also be given if the contract is about to expire and the employer does not want to renew it.
6. How can I resign with a limited contract in UAE?
To obtain a UAE limited contract resignation, there are certain things that you must know beforehand. Here, you will see all the important things that you can do without a limited contract, being an employee or an employer.
6.1 Expiration time of a limited contract
The biggest difference between a limited and an unlimited is the duration, as its name indicates. The limited contract has a time limit. The expiration time of the contract will depend on the employer. In addition, it is important that you know that this contract can be renewed by increasing the duration of employment.
6.2 Can an employer terminate an employee with a limited contract?
Any head of the company can dispense with an employee with a limited contract. But, the employee must be given a notice period. However, according to the new labor law for a limited contract in UAE, the notice period can be omitted. This is as long as an employee has committed some serious fault. For instance, forging documents.
In addition, it is important to mention that once the time of contract is over and renewal is not granted; the employee is obliged to leave the job and the employer does not have to give notice.
You can notice that there is not much difference when you want to give a limited contract resignation, compared to the unlimited contract resignation.
6.3 How much is the settlement if the employer wants to terminate a contract ahead of time?
If the employer decides to make a limited contract resignation UAE 2022; you must grant the employee compensation which consists of 3 months’ salary on termination. In addition, the salary corresponds to the time remaining to complete the contract.
6.4 Can an employee terminate an employee with a limited contract in UAE 2022?
Surely, at some point you have asked yourself “can I resign from a limited contract?” or “can I resign after 6 months in a limited contract in UAE?”. Yes but you have to pay half of your salary for 90 days. This can be avoided if the contract states otherwise.
Also, it is important to note that you can resign during the probation period in UAE; but always keep in mind that you must pay the employer for early completion.
7. At EOR Middle East, we offer you all the advice you need to resign from an unlimited contract
If you are an employee of a company and you are thinking of resigning during probation in UAE or at any other time; but, you do not know what the procedure is like or the consequences of this process, you should contact EOR Middle East. We will give you all the advice and we will help you so that you can go through this process, without setbacks.
With our company by your side, you can enjoy of the following services:
- Remote employees.
- Relocation services.
- Employer of record.
- Human Resources Management.
- Payroll outsourcing.
When you are an employee or employer who wants to do without an unlimited contract and you need the best advice. Thus, you can avoid having problems when passing this process. To be able to contact us, you can call us at +971 43 416 688 and have a consultation for 30 min by entering our portal. Or you can write directly to our email [email protected].
If you are one of those employees who decided to leave the company where they worked to apply for a better job; feel free to visit thetalentpoint.com. This is the best page you can find to find a job because of its immense variety. If you prefer direct contact, you can send us your CV to [email protected].