Questions & Answers
Repercussions of early resignation from a limited contract
Dear Sir,
I am working as a receptionist in a four-star hotel from December 2015. It's been almost more than 34 months since I started, but now I resigned as I got another job.
However, my HR department is asking from me AED 5000 for a contract amount which I signed upon joining. I have only 2 months left to complete it, but still, they want me to pay such a big amount.
Kindly advise me for the same and whom I should contact so that I can be released from paying this big amount.
I am eagerly waiting for your response thank you.
Dear Questioner,
Please note that if you have a 3-year contract with your employer and resign before the completion of the 3 years, your employer will have the right to claim compensation of up to one month and half of your monthly salary as compensation for your breach of contract by resigning.
In this case, your employer is in compliance with the UAE Labor Law and its regulations.
You have the choice of leaving your job now and paying the AED 5,000 - or getting such a deduction from your end of service benefits - or to postpone joining your new employer till you finish your current employment contract.
Regards,
Ahmed Elnaggar
