What is a limited contract in the UAE?

It is a fixed-term job contract with a specific end date, and it is now the only legal type of employment contract in the UAE.

Is there gratuity on unlimited contracts in UAE?

Yes, employees on old unlimited contracts get gratuity, but it was often reduced if they resigned early; this rule is now gone under the new law.

What is the meaning of limited and unlimited?

"Limited" refers to a contract for a fixed time period, while "unlimited" (which is now discontinued) was an open-ended contract with no end date.

Can I resign after 6 months in unlimited contract with the UAE?

Under the old system, yes, but now all contracts are limited, and you can resign after 6 months by serving the notice period mentioned in your contract.

Author: Maryam Al-Obaid

I'm a legal consultant and labor law specialist helping people understand their rights at work. I’ve been helping people figure out how to calculate their gratuity (end-of-service benefits) for a long time. My goal is to explain complex legal topics in simple ways, so everyone can understand what they’re entitled to.

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