What are the advantages and disadvantages of having a Limited Contract?

I am not really familiar how the Limited Contract agreement works. Our company uses open contracts.

A limited contract runs (like the name says already) for a certain time. Many employers offer only limited contract cause the visa costs have to be paid by them and that way they want to avoid paying high visa costs for somebody who might leave a short time later.
The disadvantage for the employee is that you have to fullfil the time on agreed in the contract. If you leave before your time is up, it's breaching the Labour law and you will receive a ban which can not be waived. In other words, you're stuck with a company also when you do not like it there or when you receive a better offer from somewhere else. At least as long as your sponsoring company follows the law.
It's also very comon that your salary will not get raised until the contract time is over. The employer does not have to be scared that you will leave because of a better offer because you can't.

An advantage is, that you can plan better. You can count on being emloyed and receiving a regular income for the agreed time.

Both kind of contracts have there pros and cons. In the UAE many companies take advantage of limited contracts and workers are trapped. But otherwise it's nothing wrong with it.

With an open contract you can be terminated any time and living in a country where you do need a sponsor that can become very inconvinient. Under certain circumstances (depending how long you worked with your present company) on a unlimited contract you can resign any time by giving a four weeks notice.

Regardless if you get offered a limited or unlimited contract, wait until the probation time is over before making the final decision. In within this time you may have made up your mind about the new job, treatment, salary and other work related things.

Take care.

it maybe limited but both sides can terminate the contract anytime. who would sign a contract where the employer can squeeze your neck anytime. when our 14th month bonus was taken we were fighting to get it back, and we did get it back.

I am totally dis-agree and un-satisfy, because I loss my End benifits and experience as per such contracts, which is no meaning for us.

Limited & Un Limited Contract agreement works should be change in merge section and follow in one Law.

I also agreed by the other guys those who reply you the answers above.

In Saudi Arabia, the terminology is rather different.

There is the "valid" contract (corresponding perhaps to what you termed as "limited" contract, and the indefinite contract.

One glaring disadvantage of an indefinite contract is in the computation of the end of service indemnity/ award. When the contract (the agreement on paper) lapses, it turns into an indefinite contract, and Saudi Law recognizes only certain percentages in proportion to years less than ten years, e.g., five days for every year of service (instead of 15 days in valid contracts). And this is why, in our company at least, everyone who comes back are not given new contracts, and the employees assured the old contract is still in effect, which is of course, hogwash, or a blatant lie.