KHALEEJ TIMES, Sunday, Aug 29, 2021 | Muharram 21, 1443
UAE labour law: Will I get an employment ban if I resign during probation period?
Emirates:
Question: I am working on a limited contract with a mainland company in
the UAE. If I am to quit before completing the probation period, I am told I
will get an employment ban. Is this true? Will I also have to pay any monetary
compensation to the company? How can I remove a ban if imposed?
Answer: Pursuant to your queries, we assume that you are on a six-month
probation period with your employer. Further, as you are employed by a mainland
company based in the UAE, the provisions of Federal Law No. 8 of 1980
(Employment Law) and Ministerial Decree No. 1,094 of 2016' are applicable.
An employee who is under a limited period of contract may not be able to
terminate it until its expiry to avoid any possible employment ban of one year.
This is in accordance with Article 128 of the Employment Law, which states:
"Where a non-national employee leaves his work without a valid reason before the
expiry of a contract for a limited period, he may not, even with the employer's
consent, take up other employment for one year from the date on which he left
his work. It shall not be lawful for any other employer who is aware of the fact
to recruit such employee or keep him in his service before the expiry of such
period."
However, an employer and the employee may mutually agree to terminate a limited
period of the employment contract after the completion of six months. This is in
accordance with Article 1 (I) (2) of the Ministerial Decree No. 1094 of 2016,
which states: "A new work permit may be granted to an employee upon the
termination of the said employee's employment relation in the following
instances:
Term contracts:
2. The two parties (the employee and the employer) mutually agree to terminate
the contract during the course of its term, provided the employee has completed
a period of no less than six months with the employer who brought him from
outside the state. These requirements shall not apply to:
(an) Employees that qualify for skill levels 1, 2 and 3
(b) Employees that qualify for skill levels 4 and 5, if their new work permits
are granted to work in works requiring skill levels 1, 2 or 3, and if they have
the required qualifications for such skill-level jobs.
(c) Employees that qualify for skill levels 4 and 5, if their old jobs were
inside the state and if they completed a period of no less than six months with
the old employer.
(d) Employees who are on the sponsorship of their families and who satisfy the
requirements for work permits.
(e) Employees who are applying for a new work permit to work for the same
establishment that cancelled their work permit, with no new work permit
resulting from such cancellation, or for any other establishment owned by the
same employer, severally or jointly with others."
Further, if you intend to resign - and as your employment contract is limited in
nature - you may have to compensate your employer by paying up to half of three
months of your salary as stated in Article 116 of the Employment Law.
Based on the aforementioned provisions of law, if you intend to resign from your
employment, it is recommended that you may opt for the same once you complete
six months. Further, you may take legal advice from the Ministry of Human
Resources & Emiratisation pertaining to skill level and salary criteria to join
new employment.