According to
the law, a contract is a legally binding agreement that is voluntarily entered
into by two or more parties. The only fundamental fact is that both the parties
must be capable of having legal power. A
contract can be anything in either a written form or even a verbal promise. . A
contract is the key element of every business and is therefore, very vital for
everyone to understand all the terms and conditions that are included in it.
In the
Middle-East, there are two types of labor contracts- limited and unlimited. A
limited contract has both the start and the end date. It cannot go above the
period of 4 years but can be renewed if both the employer as well as the
employee agrees to it. If the employee is terminated within the period of the
contract, the employer then, has to pay for the compensation that is based on
either 3 month’s wages or for the remaining period of the contract.
