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FAQs on Employment Contract (Labour Agreement)

1) Individual employment contract:

1. Is the worker entitled to obtain an employment contract?

Yes … the worker is entitled to obtain the employment contract concluded between the two parties and issued and attested by the ministry of labor signed by the two parties as the employment contract shall be in writing and each of the worker and employer shall have a copy respectively.. And the approved language in the state is the Arabic language. In case the worker does not receive the employment contract, he shall resort to the ministry of labour.

2. If the employment contract has not been issued from the ministry, can I prove my service with employer or not?

Evidence shall be conducted by the legal evidence means … for example: internal contract concluded between the two parties, appointment letter, payment statement or book of attendance and going out of the work ……….. etc. , if the worker has one of them.

3. What is the necessary information that shall be available in the employment contract?
The employment contract shall contain the following:
- Date of signing the contract.
- Date of starting the work
- Type of the contract, either it is (a limited or unlimited contract)
- Place of signing the contract
- Period of the contract: if it is a limited contract there shall be a date of the
commencement and end of the contract. In the unlimited contract only the commencement shall be mentioned therein.
- Amount of the payment: the basic salary, allowances and bonuses shall be specified
- Occupation

if there are any other conditions agreed upon between the parties of the contract to be added at the date of signing the contract provided that they are not in contradiction with the labor law

4. How long the period of probation that shall be approved in the contract of
Article (37): The worker shall be appointed under a probation period, which shall not be more than six months. This period shall not be extended for another one.

5. Is it permitted to exclude the probation period?
Yes it is as the probation period is optional.

6. Is it permitted to reduce the probation period?
Yes it is. But the probation period shall not exceed (6) months.

7. Is the employer entitled to dismiss the worker during probation period?
Yes he is. As this period is given to the employer to evaluate the worker's performance. Therefore, he is entitled to dismiss the worker during this period without a notice and without end of service benefit.

8. If the worker has passed the probation period, does this period is calculated
within service period?

This period shall be calculated when the worker successfully passed it and continued the service.

Important: (is the period of visit calculated within period of service?)

Legally, it is.

9. What are the types of employment contracts?
Types of employment contracts:

First: Limited Contract
Second: Unlimited Contract

First : Limited Contract:
10. What is the limited contract? Article (38):
It is the contract the period of which has been specified, and it shall not exceed (4) years. Such contract may be extended by agreement of the two parties for less period once or several times.
It is usually the limited employment contract to be for a period of (3) years in order to conform with the labor card and the period of residence.

Example: to be printed in the contract: (the limited contract) started from 10/ 10/ 2005 to 9/ 10/ 2008. i.e. it has a date of commencement and date of expiry.

11. Is the period after renewal of the contract considered as an extension to the original one, or each contract is calculated separately?
The said period is considered as an extension to the original one and calculated within the total period of the worker.

a limited contract, the contract which began in 4/ 4/ 2004 and expired at 3/ 4/2007 and it was renewed for another (3) years so that the concluded contract is expires at 3/ 4/ 2010.
At this example, the period of service shall be calculated since the beginning of his work with the employer in 4/ 4/ 2004 up to the last day of work.

Second: The Unlimited Contract:
12. What is the unlimited contract?
Article (39): The unlimited contract is concluded in the following case:
- If it is not written namely (there is no contract issued between the two parties)
- If it is concluded for unlimited period example: the unlimited contract of employment starts at the date of (2/5/ 2007) to (..) i.e there is no expiry date.
- If the concluded contract is a written contract with a limited period and they
continued in execution of the contract after its expiry or end of its period without a written agreement the contract is deemed limited and it was renewed for one year and after end of the renewed period the contract shall be considered unlimited contract.
As it is obvious, the clause (b) in all employment contracts issued from the ministry of labor provides for the following:
"The limited contract shall be expired at the expiration of its period. If the two parties continued in its execution, it shall be considered renewed for one year as from date of expiry of the contract and with the same conditions therein" .
- If the contract is concluded for performance of a certain work with no limited period and it is, according to the nature of the work, renewable, and the contract continued between them after end of the work agreed upon between them.

an engineer entered into a contract with an employer for completion of a certain project the period of completion of the project has not been specified after the end of the project, the engineer continued in the work with the employer ( here, the contract is considered unlimited because the contract did not specify a certain limited period for its expiry ).

If the employer terminates the contract for reasons other than those specified in Article 120 of the Law, he will be liable to pay compensation to the employee. This compensation is determined on the basis of the wages due for a period of three months or for the remaining period of the contract, whichever is less, unless an article in the contract states otherwise.

If the contract is terminated by the employee for reasons other than those stipulated under Article 12l of the Law, the employee will be liable to compensate the employer against any loss resulting from the termination. The amount of compensation payable is calculated on the basis of the employee’s salary for one month and a half or the salary payable for the remaining period of the contract, whichever is less, unless the contract states otherwise.

13- What about the limited contract the period of which was expired and the contract was not renewed, but the worker continued in the work?
The Article (40). The original contract is deemed a limited contract and renewed explicitly for one year under the same conditions provided therein.
This is What is provided in the clause (b) in all employment contracts issued from the ministry of labor, which provides for the following:
"The limited contract shall be expired at the expiration of its period. If the two parties continued in its execution, it shall be considered renewed for one year as from date of expiry of the contract and with the same conditions therein" .

14- What about the worker who works with a sub- contractor or in a (sub- contract)?
Article (41): If the employer agreed with another employer (contractor of works) by a contract concluded between them called (sub- contract) and the first party's workers shifted to the second party (the second employer) the second employer shall be responsible for the rights of those workers And according to the international work agreements: The main employer and sub- employer shall be both liable for the rights of the workers jointly and severally.
And in the practical fact, the damaged party shall submit a complaint against the original employer.

15- is there any difference between the contract of those working in education and other contracts?
Yes there is, as the contracts of education have a special nature and special conditions. These contracts are issued under coordination between the ministry of labor and ministry of education and the person who has enquiry shall first resort to the ministry of education.. then, to the ministry of labor, in case there is a dispute .

16- How the teacher's leave is calculated?
Contracts of education have special conditions and special rules because they are issued from the ministry of labour and ministry of education; therefore, the person who has enquiry shall first resort to the ministry of education then, to the ministry of labor, in case there is a dispute.

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