If contract has expiry date then it is limited, else unlimited

If contract has expiry date then it is limited, else unlimited

I work for a free zone companyhere. How may I know if my labour contract is limited or unlimited? I have only a labour card. I don’t have a labour contract copy. Please advise.



By Nasser Ahmed Al Osaiba

Published: Mon 27 Aug 2012, 8:53 AM

Last updated: Tue 7 Apr 2015, 12:39 PM

As per Article 38 of the federal labour law, the labour agreement has to be limited or unlimited. If the agreement has an expiry date then it is limited, if there is no expiry date then it is an unlimited work agreement.

Resignation letter

I have been working in a company in Abu Dhabi for over four years. I submitted my resignation on June 18, but have not got any response from the company. What can I do?

According to the federal labour law, any party that wishes to terminate the work agreement has to notify the other as per the period stipulated in the contract or as per the law depending on the type of contract. However, the law does not require the acceptance of the other party on the termination letter. Hence, if the employer receives a resignation letter and do not object to it or refuse it, then it is considered accepted.

Outstanding amount

We are an overseas company which had a strategic trade alliance with an LLC based in the UAE. This UAE company, for its own reasons, has gone into liquidity and has closed down. Ever since, there is an outstanding amount of Dh12,000 to be paid to us by this company. The director who is in the UAE is avoiding payment citing frivolous reasons despite repeated reminders. All accounts are on record on e-mails and it clearly shows dues of Dh12,000 to be paid to us. Please advise.

According to Article 294 of the Federal Company Law, one of the main requirements to liquidate a company is to appoint a liquidator who takes the responsibility of liquidating the company. You have to find out who this liquidator and claim the debt from him. If you cannot take this step, then you will have to claim this amount through the court. If the company does not follow the legal requirements during its liquidation then the manager would be personally responsible to repay your debt.

Leave salary

I have been working with a company here for the past 10 years on an unlimited contract. The company never paid my leave salary for the past 10 years. I am planning to quit now. Is it possible to get my leave balance paid along with my end of service gratuity?

As per Article 6 of the federal labour law, the court can reject the claim of any right that is due for more than a year. Hence, you have the right only to claim last year’s benefits.

Limited contract

I have been working on a limited contract since November 2009. I have not taken my vacation since I joined, around 32 months now. But I was in for a shock when I applied for my vacation. The company said I am entitled to only one month’s paid leave. Is this right? My package amounts to Dh4,500, including Dh2,700 as basic salary.

My contract will expire by November 2012. Am I entitled to only one month leave? On what basis is the leave calculated - full package salary or basic only?

According to Article 6 of the Federal Labour Law, any right that is due for more than a year is considered negated. Hence, you have the right to claim only last year’s benefits and salary.

Compiled by Ahmed Shaaban

Nasser Ahmed Al Osaiba is an Emirati Partner and Lawyer at Global Advocates and Legal Consultants, and a Legal Member in the Rent Dispute Committee, Umm Al Quwain, with a Master’s Degree in commercial law, Melbourne University, Australia. Readers may e-mail their questions to news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.


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