Questions & Answers
Placing a labor ban in case of resignation during the probation period
I signed a limited contract and it states that I may work under probation of six months.
If I resign, will I get a labor ban and be required to compensate my employer?
Hi,
If you resign from your limited-term employment contract prior to the expiry of the contract term, you will be liable under Article 116 of Federal Law No. (8) of 1980 UAE Labour Law.
Article 116 states that you are required to compensate the employer, “provided that the compensation amount shall not exceed half a monthly wage for three months or for the contract remaining period, whichever is shorter unless otherwise stipulated in the contract.”
Additionally, since you were on a limited contract, your employer has the right to file a case with the Ministry of Labour to place a ban of up to 1 year against your name for terminating the employment contract during your probationary period and before the expiry of the contract term.
Regards,
