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UAE Labor Law: Recent Update on Early Contract Termination

The United Arab Emirates (UAE) has established a comprehensive legal framework to govern employment relationships, ensuring a balance between the rights and obligations of employers and employees. Read the article to know your rights as an employer or employee.

UAE Labor Law

The United Arab Emirates (UAE) has clear rules for employment to protect both workers and employers. One important area is what happens when an employee wants to end their contract early. This article explains your rights and duties under UAE Labor Law if you’re an employee thinking about leaving your job before the contract ends.

Key Rules Under UAE Labor Law

Notice Period: Employees must give notice before leaving, usually between 30 and 90 days, depending on their contract.

Early Termination Costs: If you end a fixed-term contract early without a good reason, you might owe your employer money.

How Much You Pay: The payment is often your salary for the time left on the contract, but it depends on what you agreed with your employer.

Exceptions: You can leave without notice or payment if your employer breaks the contract, harms you, or ignores major safety issues.

Types of Employment Contracts in the UAE

Limited Contract: A fixed-term deal, usually 1 to 3 years.

Unlimited Contract: No set end date, with easier rules for leaving.

The rules for ending a contract early are stricter for limited contracts.

What Employees Must Do When Leaving Early

Here’s what UAE Labor Law expects if you want to end your contract ahead of time:

Serve a Notice Period

You must work for 30 to 90 days after telling your employer you’re leaving.

For unlimited contracts:

Less than 3 years of work: 30 days, and if its 3 to 5 years: 60 days, and Over 5 years: 90 days

For limited contracts, check your agreement, but it’s never more than 90 days.

If you skip this, you may owe your salary for the days you didn’t work.

Pay for Terminating a Limited Contract Early

If you leave a fixed-term contract without a solid reason, you might have to pay your employer. The max is 1.5 months’ pay or the salary for the time left, whichever is less, unless your contract says something else. Newer laws let you and your employer agree on terms, but payment is still common.

Situations Employee Can Leave the Company Early Without Penalty

You can quit without penalty if your employer doesn’t pay you for over 60 days, harasses you, or keeps your workplace unsafe. You’ll need to report this to the Ministry of Human Resources and Emiratisation (MOHRE) with proof.

UAE Visa and Employment Residency Rules

Expats must cancel their residency visa through their employer when leaving. If this isn’t done, you could face fines or a ban from returning to the UAE. Work with your employer and the General Directorate of Residency and Foreigners Affairs (GDRFA) to sort this out.

How to End Your UAE Employment Contract in a Legal Way?

To avoid problems, follow these steps:

– Check Your Contract: Look at the rules for notice, costs, and leaving.

– Write Your Resignation: Send a formal letter and stick to the notice period.

– Talk to Your Employer: Try to agree on terms to skip penalties.

– Get Help from MOHRE: If you disagree, MOHRE can step in to help settle things.

Finish Up: Cancel your visa and get a “No Objection Certificate” (NOC) if needed for your next job.

UAE Labor Law sets out a clear process for employees who want to leave early. You’ll need to give notice, possibly pay some money, and follow visa rules. But if your employer mistreats you, the law lets you leave without cost.

To stay out of trouble, know your contract, talk things over with your employer, and use MOHRE if needed. The UAE keeps updating its labor laws, so staying informed is smart for both workers and bosses.

For more UAE job news, check out The Dubai Street or follow us @thedubaistreet.