Questions & Answers
The consequences of resignation from a free zone company in Jafza to get a better offer
Dear Sir/Madam,
I have been working in a company in Jafza for the last year and six months on a limited contract of three years.
I would like to resign from my current job since I got a better job offer from a company outside Jafza. I have some doubts to clear before I submit my resignation.
Do I have to pay compensation to my company to cancel my visa? If yes, how much would it be? Is it possible to get any type of ban on me?
If it is possible, what kind of ban would it be? Will it be applicable outside the Jafza free zone?
Hope you can help me with my queries.
I look forward to your reply!
Dear Questioner,
Thank you for writing to me!
The UAE labor law says that if an employee terminates a limited contract before its expiry, he shall compensate the employer by paying the employer an amount not exceeding 45 days salary.
In addition to the above, if you are not serving the notice period as stipulated by your contract, the law says that compensation is provided in lieu of the notice period.
The labor ban does not have any effect if you choose to work outside Jafza.
Regards,
Rajasree Ravivarma
