Questions & Answers
Can the old employer ask the new employer to pay salaries paid to the employee?
Dear Sir/Mam,
As per clause 3 of Article (9) of the Federal Decree-Law No.33, if the worker wishes to move during the probationary period, to work for another employer in the State, he shall notify the original employer of the same in writing within not less than one month from the date of his wish to terminate the contract.
Then, the new employer shall compensate the original employer for the costs of recruitment or contracting with the worker, unless otherwise agreed upon.
What do "the costs of recruitment or contracting" mean?
I resigned after serving for 5 months and gave a 1-month notice period as well.
My current employer is asking for 6 months' salary from the new employer because as per him, the probation period salary is also part of the "Recruitment Cost".
Please advise.
Would the "costs of recruitment" or contracting include SALARY as well?
Dear User,
According to the UAE Labor Law, the new employer shall compensate the old employer for the fees paid to recruit you (i.e., visa costs and expenses related to recruitment).
This does not include salary and you may report your employer to MOHRE if they keep insisting and/or are hindering your resignation process.
Contracting means that the old employer comes to an agreement with you, the employee, and the new employer regarding the matter.
However, pay close attention to the language used in the Article as it states "the new employer shall compensate the original employer for the costs of recruitment OR contracting with the worker".
The use of "OR" states that it is one or the other, and not both.
You may refer to the terms of your employment contract in regards to resignation during the probationary period as in Article 9, clause 3 of the UAE labor law which states "unless otherwise agreed upon".
If nothing is stated regarding compensation by the new employer, then simply apply Article 9.
Kind regards,
KHA Advocates.
Dear Questioner,
Good day!
Pursuant to your Q #60489, please be informed that the current employer has the right to compensation from you if you resigned before the expiry of the probationary period as per Article (9) clauses 3 & 4 of current labor law.
The recruitment/contracting cost may include visa-related costs, flight costs (if already provided), training costs (if any ), etc for which you may ask written clarification.
However, the salary paid cannot be attributed to the "costs of recruitment or contracting".
For further assistance, kindly contact us by phone or email.
Best regards.
