Questions & Answers
Compensation in lieu of notice in case of terminating an employment contract
Hello Dr. Rashid,
I hope you're doing well!
I am interested in the contract review + legal advice service.
I would like to have some advice/more details about "Compensation in lieu of notice" in accordance with the provision of Article 117 (1) of the Federal Law No. 8 of 1980 on Labour Relations that gives employees the ability to terminate the contract as long as they compensate the employer.
In my case, I have already spent 1 month's notice period after my resignation but still have another month to go, and due to personal reasons (going back home), I would like to compensate the company (Freezone) and immediately leave as it's an urgent thing.
Would it be a possible thing to check?
Thanks!
Hi questioner,
Good Day!
With reference to your question, kindly note that Law No: 8 of 1980 has been abrogated and replaced by Federal Law No: 33 of 2021.
As per the new law, Art 43 stipulates that:
The party who did not comply with the Notice Period shall pay to the other party compensation under the name “payment in lieu of notice”, even if the failure of notice did not result in harm to the other party. The compensation shall be equal to the Worker’s Remuneration for the entire Notice Period or the remaining part thereof.
You may request the employer either to reduce the notice period or pay compensation for the remaining notice period.
We would advise you to opt for a dispute-fee transition.
For further assistance, kindly contact us via phone or email.
