Compensation for resigning during the probation Period

Dear Questioner,

It highly depends on your contract and whether it is a limited or unlimited contract.

If the contract is unlimited and you did resign during the probation, you do not have to compensate the company.

However, if the contract is limited, your resignation is deemed as a breach of contract and it may attract a penalty to compensate the employer for your breach. This compensation is capped at 1.5 times salary.

Please note that in case your contract is unlimited and your employer is a local company, you may be subject to a 1-year labour ban because you did not complete 1 year of employment with your employer.

If this is the case, then your choices of an alternative employer is very limited to a few free-zone-registered companies, as you cannot join any other local entity or some of the free zones that follows and considers the MOHRE labor ban is applicable to their rules as well.

If you may need further help please do not hesitate to contact me through ae@elnaggarlegal.com

Ahmed Elnaggar