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…

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.

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

Questions & Answers

Questions & Answers

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Early resignation in a limited employment contract

Q: I am working with one of the companies in DMCC- JLT and want to resign from it. However, as per my colleagues who left the company earlier, they say I need to pay them 45 days' salary or need to work 45 days without salary. Is it true, although nothing is mentioned in my contract? I am working with the company for 9 months and successfully completed my probation period. Please advise, I want to leave at the earliest. Thank you

Feb 6, 2019

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Consequences of early resignation in a limited contract

Q: Hello Sir/Madam, I am currently working for an Abu Dhabi private company. My contract is a limited contract and I completed 10 months of service in this company. I don't like this company, how to cancel my visa legally and how much will I pay to my company? My basic salary is AED 500 and overtime AED 350, so how much in total I will pay for the cancellation process? please clarify me

Mar 7, 2019

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Compensation for termination of an employment contract

Q: What is maximum compensation for employment contract for 5 years but where after 1st year the original owner divested of the business but never gave a termination notice to staff?

Nov 9, 2017

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What compensation should I pay to the employer in case of terminating a limited contract?

Q: Hello Sir/Madam Good morning. I just wanted to ask that I want to change my company for a certain reason and also it's been like only 7-8 months that I'm working here. It's a limited contract for 2 years. Employers said if I resigned they will put a heavy penalty. So am I allowed to leave or not? Or how much should I pay them back?

Feb 22, 2022

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Legal blog

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An Overview of the New UAE Labor Law and Recent Amendments of 2024

The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.

Sep 10, 2024

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Laws & Regulations

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Federal Law No. (8) of 1980 Concerning the Regulation of Labor Relations

The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.

Apr 20, 1980

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Ministerial Decree No. (765) of 2015 On Rules and Conditions for the Termination of Employment Relations

This Decree sets the rules and conditions for the termination of fixed-term (limited) or unlimited (not term-bound) employment contract between employer and worker in the United Arab Emirates.

Sep 27, 2015

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Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations

The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).

Sep 20, 2021

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Shamsa Albedwawi

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I received a judgment in my favor from RDC that awarded me legal fees. Does this include lawyer fees?

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I received a termination letter from my company for restructuring. Is this considered arbitrary dismissal?

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Do I need to hire a lawyer if I found I have a marital case against me in the court?

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