Questions & Answers
Resigning during probation period under limited contract
Good evening,
My husband and I resigned from our company 3 days ago. We are still under probation, with a limited visa here in Ras al Khaimah.
But we received a message early morning about a complaint from the labour under our company name, which we didn't send yet our resignation paper.
They are asking us to pay 45 days of our basic salary and a ban of 1 year.
Do we need to pay them?
Dear Questioner,
If you and your husband resigned from your limited-term employment contract prior to the expiry of the contract term, you will be liable under Article 116 of Federal Law No. (8) of 1980 UAE Labour Law.
Article 116 states that you are required to compensate the employer, “provided that the compensation amount shall not exceed half a monthly wage for three months or for the contract remaining period, whichever is shorter unless otherwise stipulated in the contract.”
Additionally, since you were on a limited contract, your employer has the right to file a case with the Ministry of Labour to place a ban of up to 1 year against your name for terminating the employment contract during your probationary period and before the expiry of the contract term.
