Questions & Answers
The possibility to reduce notice period and pay compensation in lieu of notice
Dear Khubaib,
I am an employee working in a private firm with an unlimited contract. I have resigned and my contract determines 60 days as a notice, however, I want to serve only 30 days due to other issues.
The company forces me to serve full 60 days. Can I use "compensation in lieu of notice" and pay for the 30 days notice or can the company (if they want) still request a one-year ban on me?
Regards,
Dear questioner,
Thank you for contacting me with your query!
Please note that in accordance with the provision of Article 117 (1) of the Federal Law No. 8 of 1980 on Labour Relations, in case of employment contracts for an unlimited duration, both the employer and the employee have a right to terminate the contract of employment.
Either party may serve the other party a 30 days notice for termination of the agreement prior to the last working day
Subsequently, where the party terminating the employment contract fails to give a notice of termination to the other party or reduces such period of notice, that party shall be required to provide to the other party ‘compensation in lieu of notice’.
In accordance with the provisions of Article 119 of the Labour Law and in order to reduce the notice period, you shall pay compensation in lieu of notice to your employer.
The amount of such compensation paid to the employer shall be calculated as the number of days by which you have reduced the notice period, i.e, if you are serving a notice of 30 days where your labour contract stipulates the notice period of 60 days, then you shall have to pay a compensation amounting to your thirty days’ remuneration.
Please share your employment contact with me via email or Whatsapp.
Best Regards,
Jassim Ali Al Haddad Lawyers and Legal Consultants
