Questions & Answers
What compensation should I pay to the employer in case of terminating a limited contract?
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?
Dear Questioner,
As per the new labor law (federal decree law no. 33 of 2021) took effect on the 2nd of February 2022:
Employment Contract Termination Notice
1. Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work shall be performed during the notice period agreed upon in the contract, provided that such period is not less than (30) thirty days and not more than (90) ninety days.
2. The employment contract continues to be valid throughout the notice period referred to in this Article and is terminated upon expiry of such period. The worker shall be entitled to his full wage for that period according to the last wage he was obtaining and he shall work during that period if the employer requests the same from him. It may be agreed upon the exemption from the notice period condition or reducing its period while preserving all the rights of the worker for the notice period agreed upon in the employment contract provided that the notice period is the same for both parties unless it serves the interests of the worker.
3. The party who did not abide by the notice period shall pay to the other party compensation, which is called notice period allowance, even if the absence of notification does not cause damage to the other party and the compensation shall be equal to the worker’s wage for the full notice period or the remaining part thereof.
4. The notice period allowance is calculated according to the last wage received by the worker for those who obtain their wages on a monthly, weekly, daily or hourly basis, and according to the average daily wage referred to herein for those who obtain their wages on a piecework basis.
5. If the employment contract is terminated by the employer, the worker shall have the right to be absent during the notice period for one working day without pay per week, in order to search for another job. The worker may specify the day of absence, provided that he notifies the employer of the same (3) three days at least before the absence day.
Regards
