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Difference between a limited and an unlimited contract

The difference between a limited and an unlimited contract is:

Limited contract:

  • The country ties the person with a contract for up to 2 years. If the person breaks the contract in the middle, he or she will be subjected to a ban for 6 months.
  • The company can also ban them for 6 months.
  • No transferring into other companies while tied to a limited contract.

All that means that the person is hereby forced to be with their employer, unless then resign and get a job within a free zone or a government based business.

Unlimited contract:

  • The country also ties the person with a contract for up to 2 years. If the person breaks the contract in the middle, he or she will be subjected to a ban for 6 months.
  • The company can also ban them for 6 months.
  • They can transfer to another company for their job if they pay at least 5000 dirhams along with a submission of a high school diploma.

There is not much difference between an unlimited and a limited contract. There was something that happened to me personally:

I consented to an unlimited contract but was not entirely comfortable in it. It had been more than 5 months that I was working with them but my labor card was processed late by them.

While discussing with my boss, I told him I was unhappy with the way things were due to the fact that my labor card and job contract was different, and that I was looking for other jobs outside of this company. My boss got furious at me for even thinking about such a thing. I further clarified that I have a family to look after too.

The next day, I met with my boss and he explained to me why the labor card was misleading and that I could still continue my job after my two year contract expires. But that still is a problem as I will be under an automatic ban for 6 months. I didn’t argue much as not to make my boss dislike me and create further issues. The misleading lines in contracts and labor cards can really mess things up.

I certainly do not mean to let those people down who are trying to look for a job here and I am fully aware that I need experience to make a better resume. But I really hope the contracts are more clear and understandable to the people willing to work. It is also possible that employers treat the employees cunningly due to the fact that they think their employees are in desperate need of a job and will do whatever they’re asked to do.

What needs to be done now, is to find free zone companies and a government owned job, as UAE labor law can chew a person alive. Also, having enough patience and tolerance will be great to survive in all the jobs.

| Modified: August 19, 2018 | Author:

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