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The consequences of resignation in limited term contracts

I have resigned under a limited 3-year contract after completing 2.6 years in DSO Free zone. I have already completed my 1 month notice period. My company is not providing me EOS papers.

HR is calling me and threatening that I need to pay a huge compensation saying that one of the projects lost because I have left the company (I have checked with the customer and they told me that it is not correct information).

I contacted the Free Zone authority and asked for the court referral papers. I have already informed them that I accept paying 45 days' basic salary for breaking the limited contract. They say that if I didn't pay that in cash, they will put a personal case on me.

Kindly suggest if going to DXB courts is a good option for me or not.

Also, what is the number of times I should send emails to my company stating that I can extend my stay after the notice period if they can provide me with EOS papers? (they don't want to provide that and only want me to continue working after the notice period).

Nikhat Sardar Khan

Kochhar & Co Inc. Legal Consultants (Dubai Branch)

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22 Jan 2020, 17:23

IF THEY DONT CANCEL YOUR VISA, YOU HAVE NO CHOICE BUT TO APPROACH THE COURT. Sorry for the caps!

As long as you completed the notice period and are willing to pay the compensation, it should not be an issue. You are not liable for the loss if you leave the company.

22 Jan 2020, 17:28

Thanks a lot for the information!

For breaking the limited contract, I need to pay 45 days of basic salary or gross salary?

And any idea how much time normally court process will take to cancel the visa in order to join another company to survive in this country?

22 Jan 2020, 18:02

As per resolution no 765 of 2015:

Either party (employer or worker) acts unilaterally to terminate a renewed term contract, whether renewal has occurred before or after this decree enters into effect, provided the terminating party complies with the following legal steps:

a. Notify the other party in writing of its intent to terminate the contract in accordance with the notice period to be agreed to by the two parties, not to be less than one month and not to exceed three months. If renewal occurred before this decree enters into effect and the parties had not agreed to a notice period, this notice period shall be three months.

b. Continue to honor his/her contractual obligations for the duration of the notice period.

c. Indemnify the other party to the level that was agreed to by both parties, not to exceed the equivalent of three months of gross wages. If renewal occurred before this decree enters into effect and the parties had not agreed to the amount of indemnification, this indemnification shall be the equivalent of three months of gross wages.

5- Either party (employer or worker) acts unilaterally to terminate the contract without complying with the legal steps that are described in clause (4) of this article, and for no reason of non-compliance by the other party; in this case, the terminating party bears any legal consequences of early termination.

- 3 to 6 months - you can apply for a temporary work permit.

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