إنهاء عقد العمل وإلغاء تأشيرة الإقامة

Your employer is right. Upon termination of employment, a residence visa has to be cancelled on the last day at the job, after all employment benefits have been paid out. The employee has one month's grace period after visa cancellation to exit the country.

The Immigration Authorities nevertheless do allow companies to keep staff on the visa for a longer period but this is subject to limitations. In other words, this privilege is given provided it is used for only a specific number of employees.

Speak to your employer again in a nice way, explain the difficulties you will have if your visa is cancelled immediately. An extension is done on a trust basis as technically you will still be their responsibility albeit not working at their premises.