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Contract renewal

  • Published: 12:14 March 6, 2011


I have worked in a company under a limited contract for three years. About two months ago, my contract got over and it has not been renewed. Presently, I am still working with the employer.

However, I am thinking of leaving this job since I have got a proper job opportunity with a new company. I brought this matter verbally to the managing director and I told him that I would submit my resignation from work to join the new job.

However, he told me that I am not entitled by law to leave work as the employment contract is renewed automatically when I continued work after expiry of the contract. He said that my contract is currently for limited period on the basis that my earlier contract was for limited period and therefore I am not entitled by law to leave work otherwise I will be subject to a ban.

My question here is: What is my legal position in this regard? Is my contract really deemed renewed when I continued working and is it really for limited period? Please advise me and indicate whether there is a legal provision as per the Labour Law which defines the same in detail. Note that I have not signed any new contract since the old contract has expired. Please advise me. Thank you.

I would like to clarify to the questioner that currently his contract is considered as a contract for unlimited period and therefore he may give notice of resignation to the employer in accordance with the law and then to leave work upon the expiry of the notice period pursuant to the article No. 39 of the Federal Labour Law No. 8 of 1980 which states the following: “An employment contract shall, from its inception, be considered as an indefinite term contract if and only if it:

1. Is not written.

2. Is concluded for an unspecified period.

3. Was originally written and concluded for a definite term but both parties, without a written agreement between them, continued to perform it after its expiry; or

4. Was originally concluded for the execution of a specific work that had no specific duration or that is recurrent by nature, but the contract continued after completion of that specific work.”

- Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants.