# [Termination] Limited -vs- Unlimited Contract



## xgbqbmyd

I was once in a situation where my company terminated my service for the reason other than those stated under Article 120 of Section 1 (*Termination of Employment*) of UAE Labour Law. 

I am on a Limited Contract (Start and End date is written on my signed Contract paper) and I finished my 3-month probationary period as stated on the same contract, and I was on a Free Zone (DMCC) visa.

The company I was working with reiterated that I am not eligible for the 3-months compensation upon termination, the HR manager, forced me into believing that the only payment I can get is my 1 month salary. They even twisted labor facts and those articles listed on the contract, made up stupid stories just to get away from paying the 3-months salary as stated in the Labor Law.

Armed with the advice of friends and my knowledge on the Labor Law, I filed my complaint at the DMCC office. My complaint was read and after a week, both me and my employer (HR) were called at the DMCC office to settle our dispute. DMCC mediated on the issue as both parties were given time to tell their side of story. 

Luckily, I was on the side of the Labor Law that DMCC advised the company to settle the compensation as everything I wrote (complaint letter, evidence (termination letter & contract) and mentioned relied on the given Law.

Days later, after our meeting at the DMCC office - The company paid my compensation (3-months salary as stated in the Labor Law) plus the 1 month notice period.

All I can say, It pays to know and understand the *UAE* Federal Labor Law.

*Here are some known facts:*

a. DMCC Free Zone relies on the UAE Labor Law.
b. On a limited contract, START Date and END Date should be written in the contract. This is very important, If possible though not that important, request a document from the HR which says that you had completed your probationary period with the company and now a regular employee.
c. Some company HR's (even those employed on BIG companies) don't even know and understand the UAE Labor Law, they simply rely on what they heard from fellow incompetent HR personnel's.
d. Remember that the company cannot just cancel your visa if they hadn't settled your compensation first with the DMCC.

*and some points to remember:*

1. Ask them for proof (this should be based on the Labor Law) why they tell you that you're not legible for the compensation. At the same time, print a copy of the UAE Labor Law (regarding Termination compensation) and have it handy and readily available for you to show them.
2. When you got all the facts straighten up and If you know right and that you have all the legal facts at your side, FILE a complaint/dispute at the DMCC office. 
3. When in doubt, DO NOT BE AFRAID to take actions. Know that some HR's will always find a reason just to block your settlement and get away from paying you of what's mentioned in the Labor Law. DMCC will always be the authorize body to handle this kind of dispute.

This applies to DMCC but I do know that this applies to other Free Zone areas as well as Dubai Visa. Just don't forget to visit their websites or email them for your inquiries.


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## Chocoholic

Ok, so question. What happens if you're on a limited contract and the company just decide not to extend or give a new contract - you get nothing right?


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## xgbqbmyd

Chocoholic said:


> Ok, so question. What happens if you're on a limited contract and the company just decide not to extend or give a new contract - you get nothing right?


You're saying a Finished Contract? That would be another story and NO, there's no 3-month compensation for that, only Gratuity.

The one I wrote is when you're Terminated from Service (for the reason not stated on Article 120 of the UAE Labor Law) w/o completing the span of time listed in your Contract.


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## janeadi0821

Hi there...

Been confused of what I should really do about my case.

I filed a local leave last July 3/13. And while I was on leave, something went wrong that made me got terminated by my manager. I received a letter of termination stating some reasons why I got terminated. Eventually I was on leave when she terminated me & my contract is UNLIMITED. I took already 1 year working with the company.

After that, I went back to the office & we spoke about the matter... what was happened is unintentionally & just a misunderstanding. She told me she will give me NOC and recommendation once I signed to a new job. She haven't given me yet my salary. She said she will give it all together with my passport when I got the job. Is it fair & just? I got an interview yesterday & my chances is 90% to be hire, but they want me to make sure that I will have no ban. 
What I wanted is to fix the matter between us without any filing at the labour office. 
About my contract, someone told me that the labour will automatically put a ban on me coz I broke the contract. Is it really true? even though my manager will not put a ban on me? and it is very clear that my contract is UNLIMITED...

Any help would be appreciated...


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## saraswat

Speak with the MOL: 

Ministry of Labour

They will tell you what is applicable or not and help you out ... good luck.


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