In the UAE, jobs often involve limited contracts with renewals upon completion. Unfortunately, many resign without fully capitalizing on their tenure. Understanding the UAE Labor Law provides an important advantage, ensuring you enjoy benefits that might be overlooked if the employer falls short of fairness.
Empower yourself with knowledge for a balanced employment experience. This article covers everything you must know about limited contract resignations in UAE.
A limited-term contract is a job deal with a set time, usually tied to how long someone can stay in the UAE on their visa. It is mainly for two or three years. It ceases on its own when the term is completed, but can end sooner if both sides agree or keep going if they both want to.
Resignation Law for Limited Contract in Government Sector in UAE
The rule book of Abu Dhabi Human Resources Law No. 6 of 2016 outlines the specific steps a government employee needs to take when resigning. Articles 80-81 lay down the details of the resignation process.
When an employee decides to resign, they put it in writing through a resignation letter. The administration has a month to reply.
Whether they officially accept the resignation depends on the administration’s decision, or whether they respond at all within those thirty days. If, after a month, the employee doesn’t get any word on the resignation outcome, it’s business as usual – they should keep working.
After bidding farewell to the job, the employee can stick around for up to two months, under the government entity’s watch. During this time, they are expected to hand over anything they have got from the job, and as a bonus, they receive a payout equal to their full salary for that period.
Resignation Law for Limited Contract in the Private Sector in UAE
For the private sector, the resignation rules are governed under Federal Decree No. 33 of 2021, which came out in January 2022. This set of rules covers both local workers and expatriate workers.
According to the UAE Labor Law, ending a job contract is in the hands of the employer and the employee. If it is a limited job contract, it automatically ends when that time is up unless you decide to extend it. Even if the UAE rules say so in writing, when it’s time to go, you need to officially provide a written resignation.
When applying for resignation, it is important to provide a valid reason. If the employee tries to quit at a time that is crucial for the organization, the resignation may be put on hold by the employer. Also, the employee needs to notify 30 days before officially leaving the job.
Throughout the duration of the notice period, the employment agreement remains in effect, ensuring that the contractual arrangement does not lapse as long as the employee remains actively engaged in work responsibilities. The employee will also get the usual monthly salary for serving during the notice period.
Important Points to Remember about the Notice Period
If you’re thinking about leaving your job with a fixed-term agreement, it is necessary to look for any notice period details in the contract first. Following this notice period is important to steer clear of legal issues.
In many companies, it is clearly mentioned on the contract details to present the resignation at least a month before your planned departure to serve the notice period. Also, quitting before the contract ends is seen as termination, so make sure to understand the rules about terminating the agreement.
However, it is not always the case to serve the complete notice period; it can be changed depending on mutual agreement.
Furthermore, your contractual obligations may necessitate a resignation fee if you choose to terminate your contract prematurely. Typically equivalent to one month’s salary, this fee is subject to variability based on the specific policies established by your employer.
Legal Procedure for Resignation in Limited Contract in UAE
Notice Period Allowance
In instances of failing to adhere to the designated notice period, Article 43(3) of the UAE labor law delineates a provision where the party in breach is obligated to provide compensation, commonly referred to as the “notice period allowance.” Interestingly, this compensation mandate persists even if the absence of the breaching party does not result in any tangible harm to the non-breaching party. The compensation is the one month worker’s wage.
Job hunting during the Notice Period
In alignment with Article 43(5), in the event of an employer-initiated termination, the worker has a distinctive right — the entitlement to a day of unpaid absence per week throughout the notice period for job-hunting endeavors. It’s noteworthy, however, that the application of this clause hinges on the condition that the worker duly informs the employer three days in advance of their intended absence.
Termination coinciding with an employee’s leave
Article 35 of the UAE labor law illuminates aspects of the notice period in cases of termination coinciding with an employee’s leave. When either party seeks to conclude the contract in accordance with legal provisions while the worker is on leave, the agreed-upon notice period specified in the contract is set in motion exclusively upon the worker’s return from leave. However, it is subject to mutual agreement between the involved parties and can be changed.
Resigning without serving the Notice Period
Article 45 of the Labour Law provides a distinctive avenue for employees to resign without notice under specific circumstances.
Firstly, if the employer fails to fulfill the conditions explicitly outlined in the employment contract Secondly, in a scenario where the employer resorts to assaulting the employee.
Lastly, if the employer unilaterally assigns different duties to the employee without obtaining their consent.
FAQs about limited contract resignation in UAE
Can I resign during the probation period in a limited contract in the UAE?
Article 9 of the UAE Labour Law states if a foreign worker wants to quit their job, during the probation period, they need to tell the employer within 14 days of when they plan to stop working. Resigning without providing notice during the probationary period could potentially result in the imposition of a Labor Ban.
Can I resign after 6 months in the UAE limited contract?
Yes, the flexibility extends beyond the initial 6-month threshold. Even if your tenure surpasses this period, the Limited Contract Resignation UAE 2017 gives the employees to exercise control over their career transitions.
Can I resign after 1 year in the limited contract in UAE?
Absolutely, you have the option to resign from a limited contract after 1 year. However, you may need to discuss and agree upon the compensation for ending the contract earlier than initially planned.
What happens if the limited contract is terminated without notice?
The worker has the right to receive their complete wage as stated in the contract during the notice period. If either party doesn’t fulfill the notice period, the one at fault has to compensate the other with a ‘notice period’ allowance.
This compensation equals the worker’s wage for the entire notice period or a portion corresponding to the remaining time.
Am I entitled to receive gratuity in a limited contract if I resign?
Yes, limited contracts in UAE make you eligible for gratuity when you resign following these laws:
- Service less than a year: No gratuity
- 1-3 years of service: 1/3rd of 21-day gratuity pay for each year served
- 3-5 years of service: 2/3rd of 21-day gratuity pay for each year served
- More than 5 years: Full 30-day gratuity pay for each year served
Will I be responsible for visa charges if I resign in the UAE?
No, visa fees fall under the employer’s obligation, and it’s unlawful to seek compensation for these fees, even if you resign during the probation period. Understanding your rights in this matter ensures a fair and legal resolution, contact Mohre.
What if I resign from a limited contract in UAE without a valid cause before the end of the term?
If you are a non-national worker, and you leave your job without a good reason before the contract ends, you might not find another job for a year, even if the employer allows it. During this time, no employer can hire you knowingly according to UAE’s new labor law. It’s a rule to discourage leaving a job without a valid reason before the contract finishes.
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