Cancellation of Unlimited Contract in Uae
Cancellation of Unlimited Contract in UAE: A Comprehensive Guide
According to the UAE Labour Law, an employment contract can either be limited or unlimited. While a limited contract has a specific end date, an unlimited contract has no end date and can be terminated by either the employer or employee with a notice period. In this article, we will discuss the cancellation of an unlimited contract in the UAE.
Before initiating the cancellation process, employers and employees must be aware of the legal requirements mandated by the UAE Labour Law. The notice period for an unlimited contract is 30 days for both parties. An employer must pay the employee for any outstanding salaries, end-of-service benefits, and any other entitlements as stated in the contract. An employee, on the other hand, must compensate the employer for any losses incurred due to their early resignation.
Process for Employees
If an employee wishes to cancel their unlimited contract, they must follow these steps:
Inform the employer in writing of their intention to resign, citing the reason for the resignation.
Complete the notice period of 30 days and ensure that they continue to work diligently during this time.
Hand over all work-related documents, equipment, and any other company property before leaving.
Consult with their employer to obtain a clearance certificate, which confirms that they have fulfilled all contractual obligations.
Process for Employers
If an employer wishes to cancel an employee`s unlimited contract, they must follow these steps:
Inform the employee in writing of their intention to terminate the contract, citing the reason for the termination.
Provide the employee with the required notice period of 30 days, during which the employee must continue to work diligently.
Pay the employee for any outstanding salaries, end-of-service benefits, and any other entitlements as stated in the contract.
Hand over all work-related documents, equipment, and any other company property before the termination date.
The employer must also provide a termination certificate to the employee, which confirms the reason for the termination and the date of termination.
The cancellation of an unlimited contract in the UAE requires both employers and employees to follow specific legal procedures. It is essential to adhere to these procedures to avoid any legal disputes or penalties. Employers and employees must communicate with each other during the cancellation process to ensure a smooth and fair transaction. It is also advisable to seek legal advice if there are any issues or concerns during the cancellation process.