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What is the unlimited contract?

May 3, 2016 / 547 / Category : Faqs

Article (39): The unlimited contract is concluded in the following case:- If it is not written namely (there is no contract issued between the two parties)- If it is concluded for unlimited period example: the unlimited contract of employment starts at the date of (2/5/ 2007) to (..) i.e there is no expiry date.- If the concluded contract is a written contract with a limited period and theycontinued in execution of the contract after its expiry or end of its period without a written agreement the contract is deemed limited and it was renewed for one year and after end of the renewed period the contract shall be considered unlimited contract.As it is obvious, the clause (b) in all employment contracts issued from the ministry of labor provides for the following:"The limited contract shall be expired at the expiration of its period. If the two parties continued in its execution, it shall be considered renewed for one year as from date of expiry of the contract and with the same conditions therein" .- If the contract is concluded for performance of a certain work with no limited period and it is, according to the nature of the work, renewable, and the contract continued between them after end of the work agreed upon between them.Example: an engineer entered into a contract with an employer for completion of a certain project the period of completion of the project has not been specified after the end of the project, the engineer continued in the work with the employer ( here, the contract is considered unlimited because the contract did not specify a certain limited period for its expiry ) If the employer terminates the contract for reasons other than those specified in Article 120 of the Law, he will be liable to pay compensation to the employee. This compensation is determined on the basis of the wages due for a period of three months or for the remaining period of the contract, whichever is less, unless an article in the contract states otherwise. If the contract is terminated by the employee for reasons other than those stipulated under Article 12l of the Law, the employee will be liable to compensate the employer against any loss resulting from the termination. The amount of compensation payable is calculated on the basis of the employees salary for one month and a half or the salary payable for the remaining period of the contract, whichever is less, unless the contract states otherwise.

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