Compensation to the employer for resigning before the end of a limited contract

Question

Q: I resigned from the company after 2.5 years of my 3 years' limited contract. I also served closer to 3 months' notice. Can the employer still hold 45 days of my salary? A: If you leave before the completion of the limited contract you will have to pay the employer "early termination compensation…

Shamsa Albedwawi · Accepted Answer

Hi

As per the UAE labour law if you leave before the completion of the limited contract you will have to pay the employer "early termination compensation” of half of three months’ remuneration, including salary and allowances, or half of the remuneration for the residual period if the contract has fewer than three months to run.

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