Limited Contract (Fixed-Term Employment Contract)

A limited contract is a fixed-term employment agreement with a stated start and end date, and since the UAE Labour Law reform that took effect in 2022 it is the standard contract model for private-sector employment, with older open-ended arrangements required to convert. The contract can be renewed or extended by agreement, and renewal periods count toward continuous service for end-of-service calculations. In practice the fixed term matters less than many employees assume: either party may still terminate early for a legitimate reason by serving the notice period stated in the contract, and the law caps how long notice can run. You meet limited contracts at every MOHRE onboarding — the signed offer letter must match the contract filed with the ministry — and in almost every labour dispute, because the contract's term, notice clause, and stated basic salary drive gratuity, compensation, and ban-related arguments.