Under the UAE Labour Law, a labor contract is considered unlimited if it is unwritten or specifies an unlimited term of employment. The employee can terminate the contract by serving written notice to their employer no less than 30 days prior to their departure.

In contrast, a labor contract is considered limited if it specifies a limited term of employment, i.e. 1-year, 3-years. The employee cannot terminate the contract prior to the stated term unless he or she compensates their employer for early termination.