Dear TFT,
Will I be banned from employment in case I resign before completing the probation as I am working on a limited contract with a mainland company in the UAE? Do I have to pay any monetary compensation to the company?
Sincerly,
Dorris
Reply from Atty. Imran Khan is a Legal Consultant at Bin Eid Advocates:
Yes, you need to pay compensation as mentioned in your employment contract. It can be maximum three months basic salary. Your employer may also request for a year ban for breach of contract.
According to the Minister of Labor’s decree (765) of 2015 regarding the Termination of Employment Relations states that Limited-term employment relations between employer and worker may only be terminated as follows:
- The term of the contract expires, and the contract is not renewed.
- Employer and worker mutually consent to terminate the contract during the course of its term.
- Either party (employer or worker) acts unilaterally to terminate the contract and complies with the legal steps that are described in clause (4) of this article. The terminating party bears any legal consequences of early termination.
- Either party (employer or worker) acts unilaterally to terminate a renewed term contract, provided the terminating party complies with the following legal steps:
a. Notify the other party in writing of its intent to terminate the contract in accordance with the notice period to be agreed to by the two parties, not to be less than one month and not to exceed three months.
b. Continue to honor his/her contractual obligations for the duration of the notice period.
c. Indemnify the other party to the level that was agreed to by both parties, not to exceed the equivalent of three months of gross wages.
