Your guide to terminate limited and unlimited contract

UAE labour law


Article 113


- By mutual agreement of the Parties, provided that the worker's consent is given in writing; 


- Upon expiry of its term, unless it has been expressly or implicitly extended according to the provisions of this Law; 


- For the convenience of either party to an indefinite term contract, provided that the provisions of this Law concerning the notice and the valid grounds of termination without arbitrariness are adhered to. 


Termination of a limited term Contract:

A limited term contract may be terminated at the option of either the employer or the employee mutually pursuant to the terms of the Article 113 as cited above; or


Termination by Employer:

In addition, to the above ground, an employer may terminate an employee who is on a limited term contract immediately without providing any notice period, if any of the grounds of termination as specified under clause 120 of the UAE labor law occur. Article 120 of the UAE law labor law cites the following ten grounds:


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If the employee is found in a state of drunkenness or under the influence of a narcotic drug during working hours;


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Termination of a limited contract by the employee:

In addition to the ground provided under Article 113 of UAE labor law, as discussed above, an employee on the other hand can lawfully terminate a limited term employment contract if:


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Termination of an un-limited term Contract:

Pursuant to Article 117 of the UAE labour law, an unlimited term contract may be terminated by either the employer or the employee for a valid reason at any time provided the requirements towards the notice period is met by the terminating party. A ‘valid reason’ for terminating an unlimited contract should be any reason that is ‘work related’. Work related reasons can include amongst others, poor work performance, disciplinary breach or misconduct on part of the employee or other grounds.



After qualifying as a lawyer by profession, and after years of successful practice within the field of criminal and public law, Dr. Elhais moved to Dubai in 2006, where he has continued to build his business as a legal advisor. Dr. Elhais has made it his goal to make Al Rowaad Advocates one of the best law firms in the UAE. Working exclusively with Al Rowaad Advocates & Legal Consultancy, Dr. Elhais is an effective leader of the company, It's spokesperson, and driving force. He has a strong ethical stance with regards to the place of the law firm, from clarity on the legal processes through to the fee system. Website: https://www.professionallawyer.me/
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