Questions & Answers
Early resignation in a limited employment contract
I am working with one of the companies in DMCC- JLT and want to resign from it.
However, as per my colleagues who left the company earlier, they say I need to pay them 45 days' salary or need to work 45 days without salary.
Is it true, although nothing is mentioned in my contract?
I am working with the company for 9 months and successfully completed my probation period. Please advise, I want to leave at the earliest.
Thank you
Dear Questioner,
It seems as though you are under a limited contract, but I cannot be sure without reviewing your employment contract.
On the basis of your employment contract being limited, if you terminate your contract before the expiry (typically two years), you will be liable under the Article 116 of Federal Law No. (8) of 1980 – UAE Labour Law which states:
“Where the contract is terminated by the worker for reasons other than those specified in Article (121), the worker shall be required to compensate the employer for any damage the latter sustains as a result, provided that the compensation amount shall not exceed half a month's wage for three months or for the contract remaining period, whichever is shorter, unless otherwise stipulated in the contract.”
Thus, you can be liable to compensate your employer for half of your month's wages for up to three months, unless your remaining contract period is shorter than three months, or it is stated in your contract to compensate your employer for a longer period.
Additionally, if you resign from a limited contract without it being mutually agreed upon in writing with your employer, and a notice period is also agreed (not exceeding three months), your employer can file an employment ban against you which could be enforced for up to one year.
