Questions & Answers
Compensation for premature termination of a limited labour contract
Hello.
My employer is asking for 45 days compensation and it's a limited contract, I have worked for 5 months and I am under probation.
I submitted my resignation and there was no mention of the penalty clause in the acceptance email. I replied saying I am in no position to pay the money and I can serve a notice.
How do I get out of this situation without having to pay my compensation?
Also, I would like to know if the compensation is on the basic salary.
Dear Sir/ Madam,
Thank you for getting in touch with me on this.
I understand your situation, however, your employer is entitled under Law to demand this compensation (See Article 116 of UAE Labour Law). You are under obligation to pay 45 days of basic salary as compensation.
You can negotiate with the employer to reduce the compensation, in case of no resolution, parties can submit the dispute to the Ministry of Labour who may further transfer the case to the court for determination.
I would advise that you amicably settle the matter with employer or approach Ministry of Labour for their indulgence.
I trust you will find this appropriate.
Regards,
Hari Wadhwana
