The contract of employment clearly states that an employee must give a calendar month’s notice, the employee therefore tenders his resignation on the 15th of the month arguing that a calendar months could be from the 15th of one month to the 15th of the following month and doesn’t necessarily have to be from the 1st to the 31st of a month. (May 2020). Your first steps to save money - Where can you start? 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, Revealed: Over 8,000 jobs open in Dubai in one month; industries hiring include real estate, construction, hospitality, Career: 7 tips on how women can succeed in a tech job, Career: 7 things to know about your notice period in the UAE, UAE's Emirates, flydubai, Air Arabia roll out discounted tickets for flights from Dubai, Sharjah, Fashionably protected: Fashion law in the UAE, Fired or resigning? If you're on a limited period contract, there is no specified notice period. Moreover, a well-written professional resignation letter can help you end things on good terms with your employer. Federal Law no. Check these ", All logos are trademark of their respective owner. The contract will also include the type of work carried out by the employee at the workplace. Decrees: Article ( 1 ) Financial Dues after Resignation in the UAE. Generally, an employer cannot pressurize an employee to exceed the notice period beyond 3 months. If it is mentioned, the firm is obligated to all fares as specified by contract. There are two types of employment contracts under the UAE Labour Law: The Unlimited Contract: These contracts do not have an expiry date. Only for the visa renewal/cancellation, an employer is allowed to retain an employee’s passport, or else he is not permitted to keep an employee’s passport. You can manage them any time by clicking on the notification icon. The laws imposed on employer and employee to safeguard them for haphazard dismissals and probation. Letters of resignation are one of the first stages of career transformation and growth. Labour & Employment. Minister of Labour’s decree ( 765 ) of 2015 on Rules and Conditions for the Termination of Employment Relations The Minister of Labour, Upon consulting Federal Law ( 1 ) of 1972 on the mandates of ministries and the powers granted to ministers. You can only leave the job with consent of your employer or after your contract period. A maximum of three month notice period is served generally. Under the UAE Labour Law, repatriation expenses means Travel Ticket (air ticket) as per the employees contract for himself and the family and also costs of the luggage. https://www.mymoneysouq.com/financial-blog/author/anala/. The resignation can also be submitted through e-mail and the date of resignation is counted from the date mentioned in the resignation. Article 127 of UAE labour law specifically states that when an employee performs a role that allows him to become familiar with confidential information, the employer may put in place an agreement with provisions that prevent an employee from working with a competing business after leaving service – but there are limitations. As serving a notice period is required under UAE labour law, it's important to give a resignation letter to evidence a date from which you will be serving your notice. Few other costs like family repatriation or shipping will be paid only as per the labor contract and the company’s contract policy. Under the UAE Labour Law an employee is entitled to “early termination compensation” of a minimum three months’ remuneration, including salary and allowances, (or the remainder of the term of the contract if the period remaining is less than three months ), if an employer seeks to terminate the contract prior to the end of the limited term. Privacy Policy. How to renew an Indian Passport in Dubai? 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. Corresponding to 6 Jumâdâ al – Akhir 1400 H . Check: How to renew an Indian Passport in Dubai? In the pre-internet days, buying something meant a lot of planning and saving money to be able to buy it. 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. The employment relationship between employers and employees in the UAE is governed by the provisions of Law No. How to check your Labor Contract (MOL) status? 8 for the year 1981, otherwise known as the Employment Law. UAE Labor Law states that you can only terminate a fixed contract if you satisfy the following considerations: The contract was not renewed – and is hereby terminated by the employer The employer and the employee mutually agree to terminate the contract during the term of the agreement Chapter VII: Termination and Severance Pay - UAE Labor Law May 3, 2016 / 772 / Category : Uae Labour Law Share On Facebook Share On Twitter Section I: Termination of Employment. Generally, an employer pays for sponsorship and visa costs. Gratuity payment depends on the tenure and the type of contract on which the employee has been working. Certain companies/employers deduct visa costs on an installment basis. Companies have been known to ask for installment-based deductions for visa costs from employees - this is illegal and punishable by law. Unlimited contract: This type of contract doesn’t involve any duration. We encourage our users to have discussion on questions they might have on financial products and help other users by sharing their insights. If the termination is by fault of the employee, the employer is not legally liable to pay for air fare if the employee has the means to pay -  even if it is mentioned in his or her labour contract. 12/1986 dated 29/10/1986, and . Your passport should be handed over to you immediately after the completion of cancellation. The employer may also terminate on notice provided there is a … These cookies are used to improve your experience and provide more personalized service to you. 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. Payment of gratuity pay depends on how long you have been employed for as well as your contract type - limited or unlimited. UAE Labour Law stipulates a minimum notice period of 30 days or one month. Even if the resignation was submitted by … Please follow our posting guidelines. These differ based on your period of employment and/or type of contract (limited period - should be renewed for continued employment, or unlimited - need not be renewed as there is no limit on time period of employment). Only federal authorities or competent courts are permitted to keep the employee’s passport. 8. Here are your labour rights, Labour Law: 7 things about your annual leave, Saudi Arabia suspends flights over new COVID-19 strain, Riyadh's King Abdulaziz Bus Project to start operations, UAE leaders send condolences on death of Kuwait Sheikh, Rocket attack targets US Embassy Baghdad's Green Zone, United crush Leeds to send Premier League title warning. It may vary with the information provided on the financial institute website. UAE LABOUR LAW FEDERAL LAW NO. Most of the employers will pressurize employees to give up their passports for guarantee or safekeeping. If the employee resigns of his or her own free will before completing one year, then they will not be entitled to any gratuity pay. 15/1985 dated 15/12/1985, and . Company/Employers would be punished by the law under such circumstances. If the worker does not serve the probation, the ministry of UAE can ban the employee from working for a period one year. In limited contracts, resignation before the end of the contract is considered a breach. – How beneficial is this? In arbitrary dismissal, employers are liable to compensate the employee for wrongful termination along with gratuity and other dues. Issued on 20/4/1980. Employers responsibility is to pay the charges for canceling visa and its process. In redundancy, there is no such compensation other than gratuity pay and/or notice period compensation. Based on popular reader questions on the labour law, we list employee rights and responsibilities. Federal Law no. From conditions of notice periods to arbitrary dismissals, there are laws protecting both employee and employer interests. All rights reserved. But there will be a probation period of 1 to 3 months upon the end of the contract. UAE Labour Law 2016 So it wаѕ nоthing unexpected thе nеw уеаr carried with it thrее dесrееѕ from thе Miniѕtrу оf Lаbоur. An employer can provide travel fares to the employee’s home country only if it is specified in the labor contract as per Article 131. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Some companies agree to give up passports only close to the time of departure from the country - this is also illegal. The worker is entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service. Each of which shall be reviewed in detail as follows: End of Service Benefit/ Bonus. Federal Law no. 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. Here is a checklist of things you need to remember before considering job resignation in the UAE: Familiarise yourself with the UAE Labour Law. This law is specific to the cost of a travelling ticket for the employee. There are only two situations wherein an employee can resign without notice as per Section 14 of the UAE Labor Law – if the employer has failed to serve his obligation or if the employee was assaulted by the employer or his legal representatives. Your notice period is counted from the day of resignation or termination. UAE Labour Law 6 Chapter II: Employment Of Workers Children And Women Section I: Employment of Workers Article 9 Work is an inherent right of the Nationals of the United Arab Emirates. While books and movies keep her brain ticking, Anala pursues swimming and dancing to keep fit. According to Article 125 of the UAE Labour Law, an employee upon end of contract should be given an end-of-service certificate detailing start date, end date and nature of work performed during the period of employment. It important for a worker to have knowledge of labor laws and regulations. This section is about Living in UAE and essential information you cannot live without. Article 113. If the employee is willing to have the remuneration details on the certificate, he can request the same to the company authorities. 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. 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). The UAE Labour Law provides for two ways in which an employer can lawfully terminate an employee. Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our Employees need not to pay for the visa costs. Similarly, your employer cannot force you to resign, either. Federal Law no. A lifelong explorer and learner, Anala believes in giving back, and volunteers with the Bright Spark Education program at the NGO Youngistaan Foundation, where she opens up children's minds to the innumerable possibilities of a happy and successful life! This relationship is usually regulated by way of a contract of employment that sets out the rights and obligations of each party in light of the provisions of the Employment Law. 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. The laws imposed on employer and employee to safeguard them for haphazard dismissals and probation. Discounts on Traffic Fines – Ajman, RAK, Fujairah, Sharjah, Best Credit Cards in Dubai, UAE (December 2020) – Apply Online, 19 ways to make money online in Dubai, UAE, How to get discount on Abu Dhabi traffic fines? It cannot be more than three months as per law, and your employer cannot force you to work longer than that. 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. If you need to resign urgently, talk it out with your employer. Despite having clear guidelines on employee rights in the UAE, it is usual for residents to be forced to accept less than what they're owed in case of resignation or termination. All the comments posted under MyMoneySouq official account are  not reviewed by the financial institutions. Savings account charges in UAE – What you should be aware... How to choose a Bank to open a Savings Account? The law is fixed to the traveling ticket cost of an employee. Check: What is Article 120 of the UAE Labor Law? At no time is your employer allowed to keep your passport, unless visa renewal or cancellation is in progress. Unlimited contracts give employees the right to terminate or resign from the job contract with a one-month written notice. Reasons to Save Money, Things to know about the Labor Card in UAE. We’ll send you latest news updates through the day. Avoiding a labour ban upon resignation during probation period. Visa costs and sponsorship costs are the sole responsibility of the employer and regardless of how or why your contract is terminated, you are not legally liable to pay for this. Charges of visa cancellation and the process are the employer's responsibility. When I got some free time, I read the UAE Labour Law and related clauses and the Law clearly has provided various measures under Article 131 and here is an excerpt: 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. The UAE has some gender-specific labor laws, as well as specific stipulations about non-nationals terminating contracts. According to Article 131, your employer is not obligated to pay your air fare to your home country unless it is specified in the labour contract. No Gratuity without Completing Limited Contract: It is clearly mentioned in UAE LABOUR Law Article 138 that if employee has not completed his/her limited contract period as signed in agreement, he/she will not be eligible for any gratuity. You, as an employee, are never required to reimburse your employer for visa costs at any time. When you resign, your employer's acceptance or rejection of your resignation is not essential legally. The employee is not lawfully responsible to pay for the costs regardless of why/how the employment contract is terminated. In accordance with the labour law, an employee has various financial dues after the resignation in the UAE. Non- nationals may not engage in any work within the State except in accordance with the conditions stipulated in this Law and its executive orders. And of Federal Law ( 8 ) of 1980 and its amendments governing labour relations. However, if the employee gets into the contract with another employer, then the latter will be liable for travel fare right from the time of recruitment. We don't encourage any spam posts here. This is a public forum, so we request you to be safe by not disclosing personal information such as bank account or phone numbers etc. Terms of Use The attorney you hire will answer your questions and give you advice on topics like hiring and firing, employment offers and labour contracts, salaries and benefits. What is Article 120 of the UAE Labor Law? As amended by Federal Law no . Those working in Dubai or other Emirates must be aware that serving a notice period is required under the UAE labor law, hence writing a resignation mail is quite important. and The notice period can be anything between one to three months depending on the type of contract(limited/unlimited). The ministry will try to solve the issue amicably. 15-minute UAE employment advice session. The probation will also start from the date. #3 – Serving the notice period is mandatory. Gratuity pay is measured by taking the employee’s recent salary into consideration excluding bonuses and other allowances. If you aren’t sure, try checking your induc… As per Article 117 of UAE Labour Law, the employer and employee may terminate the employment contract with unlimited period, for a valid reason at any time after conclusion of the contract by written notice duly given to other party, thirty days (30 days) at least prior to termination. There are 2 types of labor contracts. 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, Best Ways to Make Credit Card Payments in the UAE. The company is giving me additional work which is out of my job description due to the resignation of an old employee. The parties can agree on a longer notice period but can never reduce it to … You can find detailed information regarding UAE Labour Law including articles, employment laws, probation period, minimum wages, working hours, gratuity calculation, article 120, resignation clause. One has to check the terms and conditions of the gratuity calculation in order to verify any errors made by the respective company. The UAE labor resignation laws provide transparent instructions on employee rights. A 15-minute phone call with a lawyer to get advice about your UAE employment issue. Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. Services offered by the Ministry of Labour, UAE. 12 dated 29/10/1986 : Should the employment contract be of a determined term , and the employer rescind same for reasons not set forth in Article 120 , he shall be bound to compensate the worker for the damage incurred thereto , provided that the compensation amount does not exceed in any case It may also state your latest pay or wage details if requested. The payment depends on whether the employee is terminated on the basis of haphazard description or on the basis of redundancy. When the worker resigns, it is not legally mandatory for the employer to reject/accept the resignation. Q: I am in my probation period. This website stores cookies on your computer. Workers may seek new employment without facing a six month labor ban under certain circumstances such as agreement between both parties to end the previous employment, cases for which the employee is not the cause of ending the work relationship, and if the employer has violated the labor contract or … If you're on a limited contract, however, resignation is a violation of your contract. 8 Reasons why one should have a Savings Account, Can't I spend all the money? Resignation is not allowed during the contract period as it violates the terms. CONCERNING THE REGULATION OF LABOUR RELATIONS . My visa is a free-zone visa and my contract is an unlimited contract. Many employers still force employees to give up their passports for 'safe-keeping' or as 'guarantee' but this is illegal according to the UAE Labour Law. What UAE Labor Law says about Resignation? UAE Labour Law which contain the rights of each and every person who is residing or working in any state of Emirates under UAE Law and it is not allowed for anyone to … © Al Nisr Publishing LLC 2020. An employee is not legally accountable to reward the costs nonetheless of why/how the labor contract is suspended. ARTICLE 86 If the worker resigns from service due to reason of illness before the expiry of first for five days of sick leaves, and the physician employed by employer or the government physician gives his consent to the cause of resignation in this case, then the worker resigning is entitled to the payment of wage due to him with regards to remainder of first forty-five days specified hereinabove. When you resign, your employer's acceptance or rejection of your resignation is not essential legally. If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. In this case (contractual obligation), however, if the employee enters into the service of another sponsor or employer after, then the latter becomes responsible for air fare from the point of recruitment. Dubai Metro Map - Stations and Nearby Areas, List of Free Zones in UAE to start your Business, Services offered by Dubai Land Department. An employment contract shall terminate in any of the following cases: 1. If an employee is terminated haphazardly then the employers will have to pay gratuity and other dues for the wrongful termination of the employee. Limited contract: This contract is valid for a certain duration and resigning before the end of the contract period means, losing labor rights, forbidding labor and paying compensation to an employer. But as per the UAE labor law, it is illegal. Credit cards have become a lifestyle necessity for people in the UAE. Based on the UAE Labour Law, you do not need your employer’s consent to resign from your job. Buy Now & Pay Later! What do you need to know about UAE Labor Laws? The employee’s passport should be surrendered to the employee after visa cancellation process. Termination of your employment due to cost cutting is considered as arbitrary termination in accordance with Article 122 of Federal Law No. We assume that you are employed in a mainland based in UAE and therefore, the provisions of Federal Law No. Article 10 We do recommend checking your employment contract to ensure you comply with any agreements made when you started your job. 1 – “Valid Reason” Under Article 117, an employer may terminate an employee with notice as per their contract (minimum of 30 days’ and maximum 3 months’) for a “valid reason”. Kindly help us in making this site useful. Only a competent court or other federal authority is allowed to keep your passport. How to renew an Indian Passport in Dubai? The UAE labor resignation laws provide transparent instructions on employee rights. What do teenagers need to know about money? If the employee is terminated on the basis of redundancy employer will not have to pay any such dues. 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. As per article 125, an employment certificate will be provided by the company which consists of start and end dates of the contract. Keep her brain ticking, Anala pursues swimming and dancing to keep passport. Employment Law - limited or unlimited need not to pay any such dues resignation can also be submitted through and... And your employer or after your contract both employee and employer interests planning and saving money to be to. Law 2016 So it wаѕ nоthing unexpected thе nеw уеаr carried with it thrее from! Is out of my job description due to cost cutting is considered from! Job contract with a lawyer to get advice about your UAE employment issue been employed for well... Resign urgently, talk it out with your employer or after your contract violates the terms an. Mentioned in the UAE Labour Law provides for two ways in which an employer pays for sponsorship and costs... And its process questions they might have on financial products and help other users by sharing their insights type limited. You are employed in a mainland based in UAE – Akhir 1400 H – What you should be...! Months based on the type of contract doesn ’ t involve any duration a maximum of three month period. Issue amicably dues after the resignation can also be submitted through e-mail and the process are the 's... Day of resignation or termination UAE labor resignation laws provide transparent instructions on rights... 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