Questions & Answers
Can I leave my job for a better offer without paying the penalty in my offer letter?
Hello Lawyers,
I signed an offer when I joined this company stating that if I resign before two years, I will have to pay them 5,000 dirhams.
I am now 9 months in and have found a better job.
Can I walk out freely without paying anything?
Dear Questioner,
Since you have signed an agreement, the company can legally enforce the terms if included in your employment contract or offer letter.
The clause requiring you to pay AED 5,000 for early resignation may be binding if it is clearly stated in the contract.
In this case, the company may legally request this payment as compensation for breaking the terms of your employment.
Labor Law (Federal Decree-Law No. 33 of 2021) does not directly regulate penalties for early resignation, but employment contracts can include such clauses.
If you are on a limited-term contract and resign before completing the contract period, you may be subject to penalties, including the AED 5,000 as stated in the agreement.
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