Resignation Labor Laws

The UAE labor resignation laws provide transparent instructions on employee rights. The laws imposed on employer and employee to safeguard them for haphazard dismissals and probation. It important for a worker to have knowledge of labor laws and regulations.

Points to be noted while resigning or ending a service contract:

  • The resignation can also be submitted through e-mail and the date of resignation is counted from the date mentioned in the resignation. The probation will also start from the date.
  • When the worker resigns, it is not legally mandatory for the employer to reject/accept the resignation.
  • A maximum of three month notice period is served generally.
  • If the worker does not serve the probation, the ministry of UAE can ban the employee from working for a period one year.
  • The payment depends on whether the employee is terminated on the basis of haphazard description or on the basis of redundancy.
  • 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 employee is terminated on the basis of redundancy employer will not have to pay any such dues.

Employee Resignation rights and obligations:

Probation

The notice period can be anything between one to three months depending on the type of contract(limited/unlimited). Generally, an employer cannot pressurize an employee to exceed the notice period beyond 3 months.

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.

Travel Fares

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.  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.

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 law is fixed to the traveling ticket cost of an employee. Few other costs like family repatriation or shipping will be paid only as per the labor contract and the company’s contract policy.

Visa Costs

Employees need not to pay for the visa costs. Generally, an employer pays for sponsorship and visa costs. The employee is not lawfully responsible to pay for the costs regardless of why/how the employment contract is terminated.

An employee is not legally accountable to reward the costs nonetheless of why/how the labor contract is suspended. Certain companies/employers deduct visa costs on an installment basis. Company/Employers would be punished by the law under such circumstances.

Check: What is Article 120 of the UAE Labor Law?

End of Contract Certificate

As per article 125, an employment certificate will be provided by the company which consists of start and end dates of the contract. The contract will also include the type of work carried out by the employee at the workplace.

If the employee is willing to have the remuneration details on the certificate, he can request the same to the company authorities.

End of Service Pay

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. One has to check the terms and conditions of the gratuity calculation in order to verify any errors made by the respective company.

Gratuity pay is measured by taking the employee’s recent salary into consideration excluding bonuses and other allowances. Gratuity payment depends on the tenure and the type of contract on which the employee has been working. There are 2 types of labor contracts.

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.

Unlimited contract: This type of contract doesn’t involve any duration. But there will be a probation period of 1 to 3 months upon the end of the contract.

Cancelling visa and passports

Employers responsibility is to pay the charges for canceling visa and its process. The employee’s passport should be surrendered to the employee after visa cancellation process.

Most of the employers will pressurize employees to give up their passports for guarantee or safekeeping. But as per the UAE labor law, it is illegal. Only federal authorities or competent courts are permitted to keep the employee’s passport.

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.

Check: How to renew an Indian Passport in Dubai?

Labor resignation laws pay a vital role if you are planning to resign or end the employment contract. Before you to move to a new company or stop working, you are required to go through the contract thoroughly and know all the rules, laws and regulations in order to avoid any discrepancies. These laws help in maintaining cordial employer-employee relation even after ending the job contract.

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Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. While books and movies keep her brain ticking, Anala pursues swimming and dancing to keep fit. 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!

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Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. While books and movies keep her brain ticking, Anala pursues swimming and dancing to keep fit. 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!

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