Questions & Answers
The effect of signing on the receipt of entitlements upon termination
Hello,
I would like to ask about the applicable principles in case of termination of an employee's contract.
The employer added a clause of "Compromise Agreement" to the "End of the employment settlement agreement" where he declared warrants that employee can't issue proceedings or any claims "in connection with the employee's period of service and the employee undertakes that neither the employee nor anyone acting on the employee's behalf will present such application, or claim at any time after the termination of the employee's employment"
There are 2 other paragraphs where they specify to which all entities you are not allowed to issue these claims - including Ministry of Labour or other court withing UAE. the 2nd paragraph is covering international entities.
I know this practice from other countries where it is possible to declare almost anything. But these parts of the contract will never be taken into consideration based on the country law. The parties are using these only to threaten the other party.
Dear Questioner,
Kindly be noted that those clauses have no value and not applicable as The UAE federal Labor Law is stronger than the contract and must not violate its regulations.
For more information kindly contact us by phone or email.
In case of termination of the employment relationship through an amicable settlement agreement, while the employee has received his labour entitlements and acknowledged the receipt of it and that he releases the employer of any financial liabilities towards the employee, the employer has the right to add a clause through which the employee acknowledges the receipt of all his dues and that he wouldn't claim any of these dues later in front of any official authorities.
