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Pro and contra's of limited or unlimited contracts?

What are the pro and contra's of limited or unlimited contracts?

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  • ?
    Lv 7
    7 years ago
    Favorite Answer

    Well, every medal has it's two sides and the advantages/disadvantages of a limited/unlimited contract varies depending on in whose shoes you are.

    As an employer the advantage of a limited contract is that (after paying the hiring costs) you can expect the worker to fulfill his/her contract and you can plan the budget for 2 years what an employee cost you.

    For an employee the advantage of a limited contract is that he/she mostly has a secured job for 2 years and maybe doesn't get fired so fast when the employer thinks about bearing the hiring costs. In case the salary is okay - nothing wrong with a limited contract.

    The disadvantage of a limited contract for an employee is that he/she is obliged to fulfill the same and if not belonging to the exempted categories of employees a ban will appear if breaching the contract.

    By having signed a limited contract another attractive offer may be missed, but if you really take a look at it, every employee works on a "limited" contract, at least for a year. Also when a contract is unlimited, you have to stay with your employer for 1 year period (Exemptions exist).

    As long as a satisfied salary is received and the work enviroment is comfortable, a limited contract in a foreign contry is an advantage. But accepting a low offer just to be employed, a limited contract is a hinderance when looking for a better job.

    For an employer the limited contract is an advantage as long as he doesn't terminate an employee and has to pay higher compensation.

    Like I said before, every kind of contract got pros and cons depending on point of view.

    Source(s): me, UAE
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