Can I Resign after 6 Months in Unlimited Contract In UAE

Starting a new job in the UAE often involves signing an employment contract.  This agreement outlines the terms of your employment, including your role, salary, and benefits.  Understanding these contracts is crucial, especially the two main types: fixed-term (limited) and unlimited contracts. When you have an unlimited contract, there’s a lot to know. One of the big questions people often ask is, “Can I resign after 6 months on an unlimited contract?”

The unlimited contracts are the most common and offer less defined end dates.  But before you decide to move on from a position with an unlimited contract, it’s vital to be familiar with UAE employment laws.  These laws govern notice periods and potential end-of-service benefits,  so knowing your rights protects you during a resignation. Let’s talk about the rules for unlimited contracts in the UAE and all the questions you might have about quitting under these contracts. Keep reading to learn more!

Understanding Unlimited Contracts in UAE

Understanding Unlimited Contracts in UAE

Unlimited contracts in the UAE typically last until someone decides to end them. Either the company or the employee can decide to end the contract, or they might agree to end it together. This means if either employee or employer isn’t happy with the situation, they can terminate the contract.

Unlimited contracts aren’t just for full-time jobs. They can also be used for part-time or seasonal work, depending on what’s agreed upon between the employer and the employee.

Compared to limited contracts, unlimited contracts are more common in the UAE. They are seen as more flexible and convenient, offering more benefits to employees. They are often used for permanent employees who are not doing short-term project work.

Even though there’s no set end date,  both employers and employees have obligations  outlined in the contract and UAE Labour Law. These include fulfilling job duties, following work rules, providing proper notice for termination, and upholding fair compensation and safe work environment practices.

See Also: Can I Resign after 6 Months In Limited Contract UAE

Rights and obligations of employers and employees under unlimited contracts

Unlimited contracts in UAE function quite differently from fixed-term contracts. Here’s a breakdown of the key aspects:

Employee Rights  and Obligations Under Unlimited Contract in UAE

  • Job Security: Unlimited contracts offer greater job security compared to fixed-term ones. Employers cannot terminate your employment without a valid reason as outlined in the UAE Labour Law.
  • End-of-Service Benefits: Upon termination (by either party following proper procedures), employees are entitled to end-of-service gratuity based on their salary and tenure.
  • Notice Period: When resigning, employees must provide a minimum notice period as stipulated in the contract or by UAE Labour Law (typically one month).
  • Fulfilling Job Duties: Employees have a responsibility to perform their duties as outlined in the contract and company policies.
  • Following Work Rules: Adhering to company regulations and maintaining a professional conduct is expected.
  • Notice Period: Employees must give proper notice before resigning, as mentioned above.

Employer Rights and Obligations Under Unlimited Contract in UAE

  • Performance Management: Employers can manage employee performance and take disciplinary action for misconduct as per the contract and Labour Law.
  • Termination: Employers can terminate employment with valid reasons and following proper procedures outlined in the Labour Law.
  • Notice Period (Right): When terminating an employee under an unlimited contract, employers may need to provide a notice period depending on the reason and employee’s salary level.
  • Fair Compensation: Employers must provide the agreed-upon salary and benefits as per the contract.
  • Safe Work Environment: Employers are responsible for maintaining a safe and healthy work environment.
  • Notice Period(Obligation): When terminating an employee with an unlimited contract, employers may be required to provide a notice period as per Labour Law.

Understanding these rights and obligations is crucial for both employers and employees to ensure a smooth working relationship and a legally compliant termination process.

Resigning After 6 Months in an Unlimited Contract

If you are thinking about leaving your job in the UAE after just six months with an unlimited contract, it’s essential to grasp some key points before making a decision. 

Some believe there’s a six-month probationary period in unlimited contracts, the UAE Labour Law doesn’t mandate one. Even if a probationary clause exists, normal notice periods still apply. 

Secondly, although you can resign after six months with an unlimited contract, there are legal implications. You must adhere to the required notice period, typically a minimum of 30 days or as specified in your contract. 

Failure to do so without a valid reason or employer’s consent could result in financial repercussions, such as being liable to compensate for the cost of finding your replacement. Therefore, understanding these aspects is vital before moving forward with your decision to resign.

Factors to Consider Before Resigning

Before resigning from your job in the UAE, consider: reviewing your employment contract for any resignation clauses, understanding potential financial implications, maintaining a positive professional reputation, and ensuring you have valid reasons for leaving, such as better opportunities or a hostile work environment.

Alternatives to Resignation

Before resigning entirely, consider exploring other options. You could try  negotiating contract amendments  with your employer. Perhaps a change in schedule, workload, or benefits could address your concerns. If navigating these discussions feels tricky, seeking legal advice can help you understand your rights and potential outcomes. 

Additionally,  explore internal avenues to address your issues. Talk to your manager or HR department about your concerns. There might be solutions you haven’t considered that could make your current role more fulfilling.

Resignation Process in UAE Unlimited Contracts

Resignation Process in UAE Unlimited Contracts

While unlimited contracts provide job security, resigning requires specific steps to be followed. 

Notice Period Requirements

There are notice period requirements outlined in the UAE Labour Law. The minimum notice period is typically 30 calendar days, although your employment contract might stipulate a longer period, which you must adhere to. It’s possible to negotiate a shorter notice period with your employer, especially if you have a new job lined up. 

As per the new UAE labor law of 2022, particularly Article 121, employees have the right to resign from their position without providing prior notice.

Proper Documentation and Procedures

To resign smoothly and professionally from your unlimited contract, submit a formal resignation letter to your employer, stating your intention to resign and your last working day based on the notice period. During this period, cooperate with the company’s clearance process, including completing tasks, handing over property, and attending meetings. 

Ensure all salary dues, vacation days, and benefits are settled before your last working day. This ensures a smooth transition and professional exit from your job.

Legal Implications of Resigning Before Completing Notice Period

Leaving your job before completing the required notice period without a valid reason or employer’s consent could result in you being responsible for compensating the company for the costs of recruiting or training a replacement.

In serious cases such as significantly breaching the contract, you may face a temporary ban on working in the UAE.

Employee Settlement upon Resignation from Unlimited Contract

When an employee resigns from a job with an unlimited contract, they are entitled to receive a settlement based on certain conditions. 

  • If the employee worked for one to three years, their settlement is reduced by two-thirds. 
  • If their tenure falls between three and five years, the reduction is by one-third. 
  • However, if the employee worked for more than five years, they do not receive any reduction in their settlement.


What is the termination of an unlimited contract?

The termination of an unlimited contract in the UAE involves either party ending the employment relationship without a valid reason or notice period. In such cases, compensation equal to 30 days’ worth of salary must be provided by the party initiating the termination.

Can I resign after 6 months with an unlimited contract?

Yes, you can resign at any time with an unlimited contract.

Is there a probation period where resignation is easier?

UAE Labour Law doesn’t mandate a probation period for unlimited contracts. Even if your contract has one, notice periods still apply.

What happens if I resign after 6 months?

You must fulfill the notice period (minimum 30 days or as per contract). Failing to do so without a valid reason might lead to financial penalties.

Are there alternatives to resigning?

Yes! Consider negotiating contract changes with your employer, seeking legal advice, or exploring internal solutions to address your concerns.

What are 10 types of termination of contracts?

1. Mutual Agreement
2. Performance (fulfilling all obligations)
3. Expiry (reaching the end date)
4. Breach of Contract (significant failure to uphold obligations)
5. Termination for Convenience (with proper notice, even without breach)
6. Frustration of Purpose (unforeseen circumstances make fulfillment impossible)
7. Duress (contract signed under pressure/threats)
8. Misrepresentation (contract based on false information)
9. Impossibility (fulfillment becomes impossible due to unforeseen circumstances)
10. Bankruptcy or Insolvency (inability to fulfill due to financial issues)


Navigating resignations under unlimited contracts in the UAE requires careful consideration. Understanding legal obligations, financial implications, and alternatives to resignation is crucial for both employees and employers. By adhering to proper procedures and seeking advice when needed, a smooth transition can be achieved, fostering positive work environments and minimizing disruptions.

See Aslo: Do I Need To Pay If I Resign Under Limited Contract
Difference Between Limited and Unlimited Contract UAE

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