However, this is a risky attempt. According to Article 122 of the UAE Labour Law, arbitrary termination of an employee happens when an employee is fired for reasons not related to work performance, or when the employee files a valid complaint against an employer, which made the latter terminate him maliciously. We don't decide any quotes, rates, or fees on any of the financial products listed on MyMoneySouq. Working in the UAE is a good opportunity. End of service pay is termed as gratuity pay and an employee has to complete more than one year of service in a company to be eligible for the gratuity pay. Traveling in Dubai need not be expensive. “Depending on the circumstances, the employer can give an employee the option of resigning or being dismissed. Also Read: Working in Dubai and UAE: The Things You Should Know. Sometimes, employees would prefer to resign than be subjected to disciplinary or poor performance procedures (and have that on their employment record),” Khoja said. Employee's Rights upon Resignation or Termination in UAE, Things You Should Know About UAE if You’re a First-Time Visitor, Working in Dubai and UAE: The Things You Should Know, How To Calculate Your End-Of-Service Pay in UAE, What You Need to Know About Notice Period in UAE, UAE Cancels Visa Extension until December 2020, New Visa Rules and Fines announced, How to Compute Gratuity Pay in Saudi Arabia, How to Transfer to a New Job in Saudi Arabia, What’s Huroob and How Can You Exit Saudi Without Jail, UAE Guide When An Employer Doesn’t Pay You on Time. (May 2020). Resigning before the end of this period could mean one or all of these; a labour ban, loss of labour rights or even payment of compensation to the employer. A limited or fixed term contract is where the employee agrees to stay with the company for a certain number of years with a set end date. Other costs such as shipping or family repatriation are also legally payable if agreed upon in the labour contract or as per contractual company policies. Citing provisions of the UAE Labor Law, Anderson said employment contract can only be terminated on expiry of the period specified in the contract, unless during the period when the contract was extended in accordance with provisions of an existing statute. The payment depends on whether the employee is terminated on the basis of haphazard description or on the basis of redundancy. This website stores cookies on your computer. If you are planning to end your contract, there are things you need to understand first. Your dues and receivables differ based on whether you are terminated on account of redundancy (cost-cutting) or if you're terminated in what is considered arbitrary dismissal (wrongful termination). Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our This law is specific to the cost of a travelling ticket for the employee. More than 3 months is not allowed as per UAE Labor Law. The probation will also start from the date. Charges of visa cancellation and the process are the employer’s responsibility. In this context, the employee can challenge a forced resignation by the employee if the employment has not been terminated in accordance with the mentioned provisions of the law. To find out more about the cookies and data we use, please check out our, Dear Reader, please register to read gulfnews.com, Password should have minimum 7 characters with at least one letter and number, How to break into the tech industry as a young woman, Fired or resigning? Meantime, Sara Khoja, Partner at Clyde & Co, echoing Anderson’s position, said an employer cannot force employees to resign, as doing so would be against their will. If you’ve really made up your mind, then don’t negotiate unless you're willing to accept a counter-offer. Most shops... Smart way to compare Loans, Insurances, and Bank Accounts | Assistance in choosing the right financial product | Bring awareness on financial products, Bank Customer Care & Helpline contact details, The information provided on MyMoneySouq is for illustrative purposes only. Still confused about the notice period? Please follow our posting guidelines. Anderson said that strictly speaking, the employment should proceed till it has been consummated. If you're on a limited period contract, there is no specified notice period. In case, if an employee is terminated then the employer may ask him to render his service during probation or compensate his pay before he leaves the workplace. Therefore, your contractual notice period (up to a maximum of three months) starts from this date. But there will be a probation period of 1 to 3 months upon the end of the contract. Meanwhile, arbitrary dismissal is a wrongful termination which means your employer should compensate you with gratuity and other dues. From conditions of notice periods to arbitrary dismissals, there are laws protecting both employee and employer interests. Gratuity pay – you are entitled to an end-of-service pay equivalent to your service period but depending on your contract type. If it is mentioned, the firm is obligated to all fares as specified by contract. 1. In case of termination, the employer might ask you to work during the notice period or pay you the salary for the period before letting you go. An employee can request this certificate upon the end of his or her contract, and the employer would be liable to furnish this, along with any and all certificates belonging to the employee. An employer may only summarily terminate an employment contract if there is gross misconduct on the part of the employee, as stipulated in Articles 120 and 88 of the UAE Labor Law. There are varied reasons for terminating an employment contract depending on the term and on whether it is being ended arbitrarily or with advanced notification. Employee is entitled to two thirds (2/3) of the 21-days gratuity pay. If you're on a limited contract, however, resignation is a violation of your contract. Cheque book – Types, New cheque book request, Deposit and Write... Is it wise to take a Personal Loan to clear the... Factors that contribute towards a happy Retirement. Have a written resignation letter that states your motives for wanting to leave your job. All the comments posted under MyMoneySouq official account are not reviewed by the financial institutions. Few other costs like family repatriation or shipping will be paid only as per the labor contract and the company’s contract policy. All you need to know about Jebel Ali Free Zone, Certificate Attestation Services in Dubai, UAE, All you have to know about eNetwasal Services, Know about Dubai Labor contract in the UAE. Based on the UAE Labour Law, you do not need your employer’s consent to resign from your job. In case of termination, the employer might ask you to work during the notice period or pay you the salary for the period before letting you go. Your privilege as an employee abroad continues for as long as you are rendering your service to an employer. If the worker is suspended by his fault, then the employer need not pay the travel charges even if it is quoted in the labor contract. This website stores cookies on your computer. Dubai Metro Map - Stations and Nearby Areas, List of Free Zones in UAE to start your Business, Services offered by Dubai Land Department. • Unlimited-term contract. Certificate of employment – at the end of your service period, you are entitled to a certificate of employment stating the start date of your work and the nature of your job.
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