Changing contract terms

I have been working in a company for two years on a limited contract. My contract expired two months ago and I did not sign a new one with the company, as I am still working with the company. Presently, the company is asking me to sign a new employment contract with a limited period for another two years, but I refused to sign the same as I do not want to continue with the company in a limited contract. But the company refuses the same stating that as per the Labour Law; I must sign a contract for limited period, because my previous one was for limited period. Please advise me and what is my legal status in this regard as per the Labour Law.

I would like to clarify to the questioner that article 40 of the UAE Labour Law states the following: “Where the two parties continue to perform the contract, without an expressed agreement, after the expiry of its initial period or after the completion of the work agreed upon, the original contract shall be deemed to have been tacitly extended on the same conditions as those already contained therein, other than the condition respecting its duration.” Therefore, such article does not oblige the questioner to sign a contract for limited period as per the above mentioned article unless the contract contains a provision to the contrary.

Readers’ questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants