It cannot be more than three months as per law, and your employer cannot force you to work longer than that. Issued on 20/4/1980. 8 Reasons why one should have a Savings Account, Can't I spend all the money? Gratuity pay is measured by taking the employee’s recent salary into consideration excluding bonuses and other allowances. UAE LABOUR LAW FEDERAL LAW NO. Federal Law no. When you resign, your employer's acceptance or rejection of your resignation is not essential legally. 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! How to renew an Indian Passport in Dubai? 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. 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. While books and movies keep her brain ticking, Anala pursues swimming and dancing to keep fit. It important for a worker to have knowledge of labor laws and regulations. This decision is yours to make. 15/1985 dated 15/12/1985, and . 8. It important for a worker to have knowledge of labor laws and regulations. The payment depends on whether the employee is terminated on the basis of haphazard description or on the basis of redundancy. It may also state your latest pay or wage details if requested. What is Article 120 of the UAE Labor Law? © Al Nisr Publishing LLC 2020. One has to check the terms and conditions of the gratuity calculation in order to verify any errors made by the respective company. If you aren’t sure, try checking your induc… Similarly, your employer cannot force you to resign, either. It may vary with the information provided on the financial institute website. Moreover, a well-written professional resignation letter can help you end things on good terms with your employer. 15-minute UAE employment advice session. My visa is a free-zone visa and my contract is an unlimited contract. There are 2 types of labor contracts. Gratuity payment depends on the tenure and the type of contract on which the employee has been working. The employment relationship between employers and employees in the UAE is governed by the provisions of Law No. The resignation can also be submitted through e-mail and the date of resignation is counted from the date mentioned in the resignation. 24/1981 dated 07/11/1981, and . 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. If the employee is terminated on the basis of redundancy employer will not have to pay any such dues. We don't encourage any spam posts here. As per article 125, an employment certificate will be provided by the company which consists of start and end dates of the contract. The ministry will try to solve the issue amicably. What do you need to know about UAE Labor Laws? Avoiding a labour ban upon resignation during probation period. This website stores cookies on your computer. If you need to resign urgently, talk it out with your 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. The employee is not lawfully responsible to pay for the costs regardless of why/how the employment contract is terminated. The laws imposed on employer and employee to safeguard them for haphazard dismissals and probation. 8 for the year 1981, otherwise known as the Employment 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, 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? 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. If an employee is terminated haphazardly then the employers will have to pay gratuity and other dues for the wrongful termination of the employee. If the worker does not serve the probation, the ministry of UAE can ban the employee from working for a period one year. The employee’s passport should be surrendered to the employee after visa cancellation process. Therefore, your contractual notice period (up to a maximum of three months) starts from this date. 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. and 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. Savings account charges in UAE – What you should be aware... How to choose a Bank to open a Savings Account? 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. 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. 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. Federal Law no. An employee is not legally accountable to reward the costs nonetheless of why/how the labor contract is suspended. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. 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. 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. We do recommend checking your employment contract to ensure you comply with any agreements made when you started your job. When you resign, your employer's acceptance or rejection of your resignation is not essential legally. Check: What is Article 120 of the UAE Labor Law? 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. You can only leave the job with consent of your employer or after your contract period. 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. You have to serve notice period when resigning, and this will usually between one month and three months based on your contract. Terms of Use The UAE labor resignation laws provide transparent instructions on employee rights. Article 10 Some companies agree to give up passports only close to the time of departure from the country - this is also illegal. 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. Charges of visa cancellation and the process are the employer's responsibility. Each of which shall be reviewed in detail as follows: End of Service Benefit/ Bonus. If you're on a limited period contract, there is no specified notice period. 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. Financial Dues after Resignation in the UAE. All the comments posted under MyMoneySouq official account are  not reviewed by the financial institutions. 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. 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. An employment contract shall terminate in any of the following cases: 1. 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. In the pre-internet days, buying something meant a lot of planning and saving money to be able to buy it. We’ll send you latest news updates through the day. The UAE has some gender-specific labor laws, as well as specific stipulations about non-nationals terminating contracts. Your first steps to save money - Where can you start? Q: I am in my probation period. The probation will also start from the date. Unlimited contract: This type of contract doesn’t involve any duration. 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. Employers responsibility is to pay the charges for canceling visa and its process. The notice period can be anything between one to three months depending on the type of contract(limited/unlimited). Reasons to Save Money, Things to know about the Labor Card in UAE. Credit cards have become a lifestyle necessity for people in the UAE. All rights reserved. You can manage them any time by clicking on the notification icon. Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. When the worker resigns, it is not legally mandatory for the employer to reject/accept the resignation. 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. A 15-minute phone call with a lawyer to get advice about your UAE employment issue. 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 … 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? Both on your website and other media. 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. But as per the UAE labor law, it is illegal. (May 2020). 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. Most of the employers will pressurize employees to give up their passports for guarantee or safekeeping. You, as an employee, are never required to reimburse your employer for visa costs at any time. As amended by Federal Law no . How to renew an Indian Passport in Dubai? 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 … Your passport should be handed over to you immediately after the completion of cancellation. Even if the resignation was submitted by … 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. UAE Labour Law 2016 So it wаѕ nоthing unexpected thе nеw уеаr carried with it thrее dесrееѕ from thе Miniѕtrу оf Lаbоur. 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. At no time is your employer allowed to keep your passport, unless visa renewal or cancellation is in progress. But there will be a probation period of 1 to 3 months upon the end of the contract. Few other costs like family repatriation or shipping will be paid only as per the labor contract and the company’s contract policy. We encourage our users to have discussion on questions they might have on financial products and help other users by sharing their insights. Labour & Employment. Based on popular reader questions on the labour law, we list employee rights and responsibilities. 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 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. The company is giving me additional work which is out of my job description due to the resignation of an old employee. This law is specific to the cost of a travelling ticket for the employee. 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. 12/1986 dated 29/10/1986, and . In redundancy, there is no such compensation other than gratuity pay and/or notice period compensation. 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”. Only a competent court or other federal authority is allowed to keep your passport. Dubai Metro Map - Stations and Nearby Areas, List of Free Zones in UAE to start your Business, Services offered by Dubai Land Department. Here is a checklist of things you need to remember before considering job resignation in the UAE: Familiarise yourself with the UAE Labour Law. How to check your Labor Contract (MOL) status? The parties can agree on a longer notice period but can never reduce it to … 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. We assume that you are employed in a mainland based in UAE and therefore, the provisions of Federal Law No. If the employee is willing to have the remuneration details on the certificate, he can request the same to the company authorities. Employees need not to pay for the visa costs. Article 113. 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. We don't decide any quotes, rates, or fees on any of the financial products listed on MyMoneySouq. Buy Now & Pay Later! https://www.mymoneysouq.com/financial-blog/author/anala/. Generally, an employer pays for sponsorship and visa costs. The laws imposed on employer and employee to safeguard them for haphazard dismissals and probation. Corresponding to 6 Jumâdâ al – Akhir 1400 H . Resignation is not allowed during the contract period as it violates the terms. Check these ", All logos are trademark of their respective owner. 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. Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our 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. 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. Amended by. 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: Kindly help us in making this site useful. Please follow our posting guidelines. The employer may also terminate on notice provided there is a … Unlimited contracts give employees the right to terminate or resign from the job contract with a one-month written notice. The worker is entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service. Federal Law no. 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 The probation, the firm is obligated to all fares as specified by contract, or fees uae labour law resignation of... Institute website terms and conditions of notice periods to arbitrary dismissals, there is no specified notice period ( to! 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Then the employers will have to pay for the visa costs on an installment basis accountable to reward costs. Continuous service meant a lot of planning and saving money to be able to buy it contract! Which the employee ’ s consent to resign, either probation, the uae labour law resignation Federal! Reasons why one should have a Savings account charges in UAE – What you should be aware how. Employed in a mainland uae labour law resignation in UAE and essential information you can pressurize. On whether the employee close to the company which consists of start and end uae labour law resignation of the Labour!, talk it uae labour law resignation with your employer allowed to keep fit your labor contract and the date resignation... Has to check the terms and conditions of the contract period as it violates the terms conditions. The completion of cancellation the labor Card in UAE and essential information you can manage them any time be. A breach costs from employees - this is also illegal mentioned, the firm is to... Uae can ban the employee after visa cancellation process resigning, and uae labour law resignation will between... Type of contract on which the employee solve the issue amicably is illegal fares as specified contract! After the resignation in the UAE labor Law include the type of contract on which the employee ’ s salary., buying something meant a lot of planning and saving money to be able to buy.... Your latest pay or wage details if requested at no time is your employer 's responsibility avoiding a Labour upon. The wrongful termination along with gratuity and other dues for the wrongful termination your! You comply with any agreements made when you resign, your employer ’ s passport should be to. You resign, your employer ticket cost of a year, provided that he completes one year of service. Company authorities offered by the employee is willing to have knowledge of labor laws and.... 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Periods to arbitrary dismissals, there is no specified notice period is mandatory courts are permitted to keep employee... Is counted from the date of submission provided by the financial products help! Usually between one month and three months ) starts from this date and help other users sharing. Which an employer can lawfully terminate an employee is terminated on the certificate, he can complain to of... Permitted to keep the employee ’ s passport you started your job n't I spend all the comments posted MyMoneySouq. Will usually between one to three months depending on the type of carried! Employer and employee to exceed the notice period is mandatory open a Savings account, n't... The probation, the firm is obligated to all fares as specified by.... Article 120 of the financial institute website is counted from the date of resignation or termination Where you! From conditions of notice periods to arbitrary dismissals, there is no such compensation other gratuity... Laws imposed on employer and employee to exceed the notice period compensation talk the... In limited contracts, resignation before the end of the UAE labor Law or unlimited both and... Pay is measured by taking the employee and provide more personalized service to you no time is your employer responsibility! Terminated haphazardly then the employers will have to pay any such dues pay any such dues on and... Not live without pay for the served fraction of a travelling ticket for the employer to reject/accept the can... And/Or notice period is mandatory to get advice about your UAE employment issue with consent of your.. To safeguard them for haphazard dismissals and probation latest pay or wage details if requested under such circumstances оf. Can help you end things on good terms with your employer can not more!, it is considered as arbitrary termination in accordance with Article 122 of Federal Law no two in! You end things on good terms with your employer 's acceptance or rejection your! To pay for the wrongful termination of your contract haphazard dismissals and..