End of Service Limited Contract Uae

31 març End of Service Limited Contract Uae

End of Service Limited Contract UAE: A Comprehensive Guide

In the United Arab Emirates (UAE), the labor laws mandate that all employees must have a written employment contract. The most common type of employment contract in the UAE is the end of service limited contract. However, many employees in the UAE are not aware of the details of this contract and what it means for their employment.

In this article, we will explore what an end of service limited contract is, what it includes, and what it means for employees.

What is an End of Service Limited Contract?

An end of service limited contract is a type of employment contract that is widely used in the UAE. This type of contract specifies the terms and conditions of employment, including the duration of the contract, the salary, the benefits, and the responsibilities and duties of the employee.

One of the key features of an end of service limited contract is that it specifies the end date of the employment relationship. At the end of the contract period, the employer is required to pay the employee an end of service gratuity, which is a sum of money calculated based on the length of service.

What Does an End of Service Limited Contract Include?

An end of service limited contract typically includes the following:

1. Duration of the contract

2. Job title and responsibilities

3. Salary and benefits

4. Working hours and holidays

5. Notice period

6. Termination clause

7. Confidentiality clause

8. Intellectual property clause

It is essential for employees to read and understand the terms and conditions of the contract before signing it. Any questions or concerns should be addressed with the employer before signing.

What Does the End of Service Gratuity Include?

The end of service gratuity is a sum of money that an employer is required to pay to an employee at the end of the employment contract. The gratuity is calculated based on the employee`s length of service, as follows:

1. 21 days` basic salary for each year of the first five years of service.

2. 30 days` basic salary for each additional year of service.

The end of service gratuity is calculated based on the employee`s basic salary, which does not include any bonuses, commissions, or allowances.

What Happens When the End of Service Limited Contract Expires?

When an end of service limited contract expires, the employer has three options:

1. Renew the contract: The employer may choose to renew the contract with the employee. In this case, a new contract will be signed.

2. Terminate the contract: The employer may choose not to renew the contract and terminate the employment relationship. In this case, the employer is required to pay the employee the end of service gratuity.

3. Extend the contract: The employer may choose to extend the contract on a temporary basis. However, the employer must still pay the employee the end of service gratuity when the employment relationship eventually ends.

Conclusion

In summary, the end of service limited contract is a common type of employment contract in the UAE, which specifies the terms and conditions of employment, including the end date of the employment relationship. It is essential for employees to read and understand the terms and conditions of the contract before signing it. When the contract expires, the employer is required to pay the employee an end of service gratuity, which is calculated based on the employee`s length of service.