Sunday, November 21, 2010

Termination of Unlimited Employment Contract in UAE- Frequently asked questions

Termination of the employment contract by worker: article (117).

1. I am employed under a labor contract of unlimited period, and I want to leave my Present job. What should I do?
This labor should submit his written resignation letter…And should mention in it that he want to work for a period of one month only, and this one month period shall represent the notice period fixed in one month.
2. I have terminated the service of one labor employed with me under a labor contract of unlimited period; do I need to give him a notice of one month?
Yes… because, based on Article No. 117, if the employer is desirous to terminate the service of any of his employees, he should do so in writing and should give him a notice of one month as per the law…except in case of termination pursuant to Article No.120
3. I am employed under a labor contract of unlimited period…and I receive my salary on per diem basis…, how can I send a notice to my employer in case I have submitted my resignation? Article No. 117
The notice can be send by per diem labors as follow:
1- If the labor has worked for a period exceeding 6 months and less than one year, he should sent a notice of (one week) to his employer.
2- If the labor has worked for a period not less than one year, he should send a notice of (two weeks) to his employer.
3- If the labor has worked for a period not less than five year, he should send a notice of (one month) to his employer.
* Example (1): A labor with a labor contract of unlimited period, who worked with his employer for a period of 7 months for a salary of DHS. 25/day…If such worker needs to resign, he should give a notice of one week to his employer commencing from the date of his resignation letter
* Example (2): A labor with a labor contract of unlimited period, who worked with his employer for a period of one year for a salary of DHS. 30/day…If such worker needs to resign, he should give a notice of two weeks to his employer commencing from the date of his resignation letter
*Example (3): A labor with a labor contract of unlimited period, who worked with his employer for a period of five years for a salary of DHS. 50/day…If such worker needs to resign, he should give a notice of one month to his employer commencing from the date of his resignation letter *Example (4): A labor with a labor contract of unlimited period, who worked with his employer for a period of three years for a salary of DHS. 20/day…If such worker needs to resign, he should give a notice of two weeks to his employer commencing from the date of his resignation letter
4. If the employer or the worker refused to receive the termination or resignation letters, how can we proof the same?
- Both parties should resort to the Labor Relation Department…As for the worker, he should continue in performing his duties in case he has submitted a compliant.
5. I have submitted my resignation letter to my employer, knowing that I am working under unlimited labor contract, do the said one month notice to be calculated within the total service period? Article No. 118
- Yes, such period shall be calculated within the total service period provided that the worker has actually worked within the said period
6. I have worked during the notice period of one month after I have submitted my resignation letter… And after the notice period has expired, my employer asked for an extension of the notice period without any reason. Shall he have the right to do the same?
The employer may extent the notice period after the worker has completed his work in that period, but the same should be under the consent of both parties.
7. I have submitted my resignation letter to my employer, knowing that I am working under unlimited labor contract besides, we have already, me and my employer agreed to reduce the notice period, what shall be my legal position in such a case?
The one-month notice period may neither be reduced nor may the month period be relieved from even if the same has happened under the consent of both parities… but the respite period may be increased, (the month notice)
8. How can the month notice allowance be calculated if the worker has submitted his resignation letter or if the employer has terminated the service of the worker…and the worker has already done his duties during the said period?
- It shall be calculated based on the last salary received by the worker.
* Example: A labor with a labor contract of unlimited period, and who worked with his employer for a salary of DHS.2000… but at present time, he receives DHS. 3000 as the employer has increased his salary- In this case, the worker shall have the right to receive the one month notice salary based on the last salary he received from his employer which amounts to DHS. 3000
9. I have worked with my employer for a period of one year under a labor contract of unlimited period, yet I have submitted my resignation letter… and I have worked during the notice period of one month, but it was stipulated in my labor contract that if I submitted my resignation, I should work for 3 month as a notice period…Do I need to be bound to such condition?

- Yes, the labor should be bound to the one month notice period, (3 months), if his contract so requires.

10. In case the worker has submitted his resignation letter, but he suddenly ceased working before completing the one month prescribed notice period, what shall be the legal action in this case? Article No. 119
 If the worker didn’t work during the notice period or if he didn’t complete the prescribed period…he should, in this compensate the employer with an allowance called: (the notice allowance) and this shall be through the last salary received by him from his employer.
11. In case the employer has terminated the worker’s unlimited labor contract and didn’t ask the said worker to work during the notice period…, or if he has reduced the notice period, then What shall be the legal action towards such case?
- If the employer has terminated the service of his employee, he should, in case he is not desirous to avail the work of his employee during the notice period, pay to the worker the one month notice period’s salary based on the last salary received by the worker. And in case the employer has terminated the service of his employee after the later has worked for a limited period from such notice period, then the employer should compensate his said employee for the remaining period.
* Example: The employer has terminated the service of his employee, whereas such employee has worked for 20 days from the one month notice period, but the employer has asked him to cease working…In this case, the employer has to compensate the worker also for the remaining period which amounts to 10 days.
12. A worker was terminated by the employer after the former has worked for 11.5 months…whereas the employer has paid him the value of the one month notice period, do such worker deserves the end of service gratuity?
The worker shall not have the right to obtain the end of service gratuity as he didn’t work during the one month notice period.
13. If the worker has submitted his resignation letter and was ready to work during the one month notice period…and the employer has waived such period, do such worker deserves the allowance of the one month notice period?
 Yes, he shall have the right to claim for the allowance of the one month notice period.

14. In case the worker has submitted his resignation letter and took a leave… or resigned during such leave period…shall the said one month notice period become invalid?
 No, it shall not become be invalid and the worker should work for the one month notice period.
15. May the employer terminate the worker without notice? Article: (120)
 Yes it is possible in some cases including:
1- If the worker has impersonated a false personality or nationality or if he has presented forged documents or certificates.
2- If the worker is still in the probation period and was dismissed within or at the end of such period.
3- If the worker has committed a mistake out of which a great loss has resulted to the employer…provided that such employer has already reported this case to the Ministry of Labor within a period of 48H from being informed by the incident.
4- If the worker has violated the work safety instructions or the work place, provided that such instructions were in writing and displayed in a prominent place.
5- If the worker hasn’t performed his main obligations as per the labor contract…and continue in so doing in spite of a written investigation made with him for this purpose and of noticing him not to repeat this violation, otherwise he shall be liable for termination.
6- If the worker has been finally adjudged by a competent court for a crime damaging honor, general morals or for breach of trust.
7- If he had disclosed the company’s confidential information.
8- If he was found drunk or using drugs during the work hours.
9- If he had assault his employer, the manager in charge or any one of his colleagues during the work hours
10- If the worker is absent without presence of reasonable cause, for: - More than discontinuous 20 days during the year.- More than 7 continuous days.
Note: In all the above cases, the employer should prove the occurrence of the relevant incident.
* Example: I have worked with my employer…and he has accused me for the crime of breach of trust…an investigation in the matter was carried out and as a result I was finally adjudged for a fine and imprisonment… ACCORDINGLY, the employer terminated my service…so I am claiming for the amount of the notice period and the compensation such termination.- The worker shall not have the right to have the amount of the notice period based on Article: 120 of the labor law as such worker was dismissed as a result of breach of trust…so the employer shall have the right to terminate him without notice.
* Example: I have been absent from duty for more than 7 continuous days…when I am back to work, my employer dismissed me without any reason… I am claiming for the amount of the notice period.- The worker shall not have the right to have the amount of the notice period if he was absent without reason for 7 continuous days… but if he has any reason, such as an approved sick leave, his employer shall not have the right to dismiss him.

16. If the employer is having a right to dismiss the worker without notice…, shall such worker have the right to leave the work without a notice? Article: 121:
 The worker may have such right in the following two cases:
* If the employer has violated his obligations before the worker with respect to the terms provided for in the contract and the law.
* If an assault had happened against the worker from the employer or from his representative.
Note: The worker should prove the occurrence of both cases.
* Example: I am working with my employer… but he didn’t pay me the salary of 3 months…so I have left the work…but my employer is claiming for the notice period?
The employer shall not have the right to claim for the notice period as he has violated the law and the labor contract based on Article: 121
17. My employer has dismissed me without any reason after I have passed the probation period… do such dismissal considered arbitrary? Article: 122
 If the employer has dismissed the worker, after the probation period without any reason, or if the reason of such dismissal has no connection with the work or if it is due to a complaint to the concerned authorities against the employer or for a case filed against the employer…then such dismissal shall be considered arbitrary.
18. If the employer has arbitrary dismissed me without presence of any reason and I am damaged due to the same…how can such damage and arbitrary dismissal be determined?
Article: 123 The competent court is the party which adjudge the employer to pay the compensation for the worker…and it is the party which estimate the value of such compensation as per the work nature and size of damage incurred by the worker in addition to his period of service…provided that the compensation value shall not exceed the salary of 3 months calculated on the basis of last salary received by the worker.
19. The employer has terminated my service due to the fact that I am not fit from the health point of view, shall he have the right to do the same? Article: 124:

 He may not have the right to do the same for health reasons before the worker has utilized all his legally due leaves. However any agreement or condition contrary to this Article shall stand null and void.

20 Can I have the right to obtain an experience certificate after I have spent my work period with my employer? Article: 125:
The employer should give the worker, on the basis of the later request, and at the end of his contract period, a free experience certificate…such certificate should include:
A- Date of joining the work
B- His contract expiry Date.
C- Total service period
D- Type of work.
E- Last salary obtained in addition of other entitlements, if any.
* The employer should also give back to the worker all his certificates, tools and equipment, if any.
21. I have worked with my employer, but he have sold the establishment for some other person…how can I obtain my work dues? Article: 126:- Based on Article: 126, the service shall be continuing even if the establishment was sold to any other person…both new and old employers shall be jointly responsible for a period of 6 months…and after this period the new employer should bear the responsibility alone.

* Example: An establishment was sold by the original employer to some other person, but the original employer didn’t settle the labors dues…then 3 months were elapsed since it was sold to the new employer…in this case both the new and old employers shall be jointly obliged to pay the workers dues…and after 6 months the new employer shall bear such responsibility alone.

22. I have signed the labor contract…whereas mentioned in the said contract a term which stipulates that after the expiry of my service or during suspension of my work, I should not work with any other competing company for a period of two years?
 Article: 127:- If it was agreed in the labor contract as such…then the worker should be bound to the same…and should not work with any competing company all through the period mentioned in the contract… provided that:
1- The worker should be of 21 years of age when the said contract was concluded.
2- To fix the time…e.g.: Not to work with any competing company for a period of two years from the date of cancellation.
3- To fix the place…e.g.: Not to work with any competing company in UAE…or any particular Emirate.
4- Type of work… e.g.: In the same company’s field of work… or the same job.
* Important:The condition of non- competition was not stipulated in the labor contract approved by Ministry of Labor, but it was mentioned in the labor contract concluded abroad or in the internal labor contract concluded between the two parties or in the work offer, do this be valid?

18 comments:

  1. sir/madam im working in a private company under unlimited contract as sales retail.just had my maternity leave for 45 dys& annual leave of 32 dys by their approval,as i resumed my work last Oct 19,2010
    On Nov 2,2010 i receive a dismissal of service,without giving me advise of what is the reason.
    Stating the assessment of my performance below satisfactory & acceptable levels over the past 6 mos.In this matter ive been with them for 8 yrs which for me its insulting my capacity over the yrs.Im in needs due to my child still on medical mentanance for cancer.
    What are the rights or dues entitled for me?can i transfer my visa & my child visa to my husband?,hes in JAFZA wth the salary of 5500.
    Im working under the notice till Dec 4,2010
    kindly help me to answer for my rigths..
    thanks so much in advance.
    Nov 22,2010

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  2. Thanks for sharing the article. I was really wondering and i get here and get amazed by the article. Hope that we will get more ahead.

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  3. husband can sponser wife and children. After canceling your visa you are geting one month time to apply for new visa under your husband
    Regards

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  4. hi there,im working in the restaurant for almost 1yr and 6monts and my contract is unlimited.but i have a problem with my documents i have a residence visa but i dont have pataka card.my employer did not give this i.d and i found out that i dont have file exist in the labour?what i will do?and my employer did not give a copy of my contract.running for 2yrs.i dont have pataka dis i have penalty for that matter?in 1yr.theres a 21 holidays right?but my employer did not pay us.can u kindly help me for this matter please tnx....

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  5. Dear Sir,
    Am working in a company with unlimited contract.i completed one year in the present company.i got good offer from another company and i want to quit.what are the possibilities there ?please help me

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  6. hi,
    I'm currently working in a security company with unlimited contract and i already completed 1 year, now I want to cancel and try to look for another job because we are not receiving our salary for almost 3 months. Can you please explain and give me some advice about this matter..
    Looking forward for your reply..
    TNX

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  7. is there any one get reply back?

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  8. Last month i joined a company in Dubai on unlimited contract. Now i am in Probation period, i am not satisfied with the job,in offer letter they had mentioned that either two parties can leave during the probationary period. I would like to resign from the job next month. If i am doing the same should i pay the visa fee or anything,, In offer letter and all they had never mentioned that at all. please let me know as the earliest.

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  9. Last month i joined a company in Dubai as a sales executive on unlimited contract. Now i am in Probation period, i am not satisfied with the job,in offer letter they had mentioned that either two parties can leave during the probationary period. I would like to resign from the job next month. If i am doing the same should i pay the visa fee or anything,, In offer letter and all they had never mentioned that at all. please let me know as the earliest.

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  10. Sir/Madam,Im working before under the limited contract,my company didnt give 2 mont salary and they to pay me a visa expenses,I went to labour office to complain my employer,we had a hearing between me and my employer,my employer dont want to continue my job under his company but the decision of the legal counsel is I will pay the 45 days and they to submit me a resignation letter,do you think this is fair?after a month my employer file a case against me as abscon with out any notice from labour or from my employer.I counter file a case against them to prove that im not an abscon,because the stop me to come in my job and I have a complain against them for not giving my salary.We had some hearing in that case but even once my employer didnt come,the labour office decide to cancel my work permit with out the appearance of my employer.After cancellation my work permit I proceed in immigration to remove the abscon case and also to cancel my visa but I found out ny passport have penalty according to th immigration officer,they said that my passport there is no stamp for residence visa.Is it my obligation to pay? Af far as I know this tha obligation of my employer and not me.Please help me what should I do?

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  11. sir/madam
    im working in a private company under unlimitted contract as cleaner but 6 months iwas working as stay in of one of our client and since that time i been stay in i worked full time not in 8hours as per in my ccontract stated i never avail public holidays i never used time in and time out as proof of my duties.THE AREA MANAGER KNOWS THESE BECAUSE SHES THE ONE DEALS TO THE CLIENT BUT OUR HR IN OUR COMPANY DOESNT KNOW.AFTER 6 MONTHS OF BEING STAYIN CLEANER I REFUSED TO WORK ANYMORE AS STAYIN BECAUSE I CAN COPE ALL THE WORKS OF THAT HOUSE MY HEALTH BECOME WEAK BECAUSE OF THIS MY AREA MANGER ADVICE TO HR TO TERMINATE ME AND THE REASON SHE ACCUSED IS THE EXTRA MONEY THAT MY CLIENT GIVEN TO ME INFACT THAT MONEY SERVE AS A TIPS FOR ME FOR BEING A STAY IN CLEANER IN THEIR HOUSE...THE REASON IN MY TERMINATION SAYING THAT IM BEING UNTRUSTWORTHY TO THE COMPANY FOR NOT INFORMING THEM THAT I GET EXTRA MONEY FROM MY CLIENT.INFACT THAT THE AREA MANAGER KNOWS THAT IM GETTING EXTRA MONEY.THEY JUST UPSET COZ I REFUSED TO WORK AS STAY IN ANYMORE.IN THIS CASE DO I HAVE THE RIGHT TO COMPLAIN TO THE LABOR?THE HR TOLD ME THAT I CAN GET ONLY MY LAST SALARY,UNUSED LEAVE AND TICKET TO HOME COUNTRY.I WAS EMPLOYED IN THE COMPANY FOR MORE THAN 10 MONTHS.PLEASE ADVICE ME IF THEY ARE RIGHT FOR WHAT THEY HAVE DONE TO ME AND THE BENEFITS I NEED TO RECIEVED..HOPE TO HEAR SOON YOUR REPLY...THANK U IN ADVANCE
    BY THE WAY MY LAST WORK DATED NOV.17 2011 BUT THEY WILL CANCELLED MY VISA ON DEC.17 2011.

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  12. i am diploma of electrical engineer, this is my first visa in uae. my visa is 2 years i finished my 11 months in this company and want to change my company i have 8200 offer. my contract is unlimited in my present company please tell me solution to save banned, if any body now.

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  13. im in big trouble. i am new here in abud habi working as waitress. now iam 3months working here. i cant open my problem to anyone so i hope you guys can help me. i am pregnant out of wedlock i know this is illegal if some knows about my situation they will report me to the police and put me in jail. is thier any option for me to resign and go back to my home country. im under probationary period 3 months. i think i am 3weeks pregnant now. i dont want to go in jail. pls. help me. i dont know what to do now. this is a big mistake that i ever done in my life. can you help me to make possible reason to resign immediatly to my company. i am so scared now. i need your opinion guys . i need your help. pls.pls.

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  14. im in big trouble. i am new here in abud habi working as waitress. now iam 3months working here. i cant open my problem to anyone so i hope you guys can help me. i am pregnant out of wedlock i know this is illegal if some knows about my situation they will report me to the police and put me in jail. is thier any option for me to resign and go back to my home country. im under probationary period 3 months. i think i am 3weeks pregnant now. i dont want to go in jail. pls. help me. i dont know what to do now. this is a big mistake that i ever done in my life. can you help me to make possible reason to resign immediatly to my company. i am so scared now.

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    Replies
    1. Please resign from the job and go back to your home country

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  15. Hello, Please help me I need some information my visa is Limited. I have joined the company three months back as an store keeper in Dubai Dip-2 and my contract is for 2 years and now I want to change the company because I am not satisfied with this job as I am software developer & Eng. Can I change the company with out band or paying to Employer ? I have got an oppertunity to work in jebel ali free jone now I planing to resign the present company and join in Jebil ali free zone company . Please help me and let me know how I can change the company.

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    Replies
    1. The worker shall compensate the employer and the employer might request the Ministry of Labour to impose a one-year ban on the questioner on grounds that the questioner broke the employment contract, which is for a limited period, and which caused damages to the employer.

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  16. After Termination Of Visa,Is It Necessary To Cancel Unlimited Contract Or A Take NOC letter when appling for a new visa because visa is cancelled bt contract is still unlimited ,plz help
    or
    Unlimited Contract will be auto terminated when ending of visa,plz help
    thanks

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