Questions & Answers
Resignation from a Freezone company and paying compensation
Hello,
I would like to seek your advice regarding my situation. I have recently resigned from a Freezone company. I have a Fujairah visa. I was able to complete my first contract of 3 years.
This year, I have renewed my contract and after 6 months, I decided to resign. I've completed my render period of 30 days.
Now, my boss is telling me that in lieu of my contract termination, I am not entitled to receive gratuity and cannot encash my unused leaves as I have to payback my visa renewal and medical fees including the cancellation.
He also mentioned that I am reliable for the "early termination compensation" which means I have to pay half of three months salary and allowances. I have tried to call MOHRE but they said that Freezone is not part of their scope.
Hello,
Regarding your question of resignation, I need to ask you what type of contract did you sign with your employer?
The UAE Labour Law is very clear, it is the employer’s responsibility to arrange an employment visa and work permit and also to pay for them. This applies to both mainland employers and all free zones.
After completion of one year, an employee is entitled to end of services benefits.
