Can I resign without notice if my employer hasn’t renewed my insurance?

Dear Client,

Thank you for your inquiry regarding your employment situation!

Based on the details provided, I would like to address your concerns regarding resigning without serving the notice period and your entitlement to gratuity.

1. Resigning Without Notice:

Under UAE Labor Law, employees may resign without serving the notice period in exceptional circumstances, such as:

- The employer's breach of obligations (e.g., failure to provide mandatory benefits like health insurance).

- Expired trade license, which may indicate non-compliance with legal requirements.

- Serious safety or health risks at the workplace.

Given that your employer has not renewed your insurance since October 2024 and their trade license is expired, these factors may constitute a breach of obligations under Article 45 of the UAE Labor Law.

This could allow you to resign immediately without serving the notice period. However, it is advisable to consult with legal counsel or the Freezone authority to confirm whether these circumstances justify immediate resignation.

2. Gratuity Entitlement:

Your gratuity entitlement depends on several factors:

a. Duration of Service:

If you have completed at least one year of continuous service, you are entitled to a gratuity.

For service between 1-5 years, the gratuity is calculated as 21 days of basic salary per year. For service exceeding five years, gratuity is calculated as 30 days of basic salary per year.

b. Contract Type:

If you are under a limited contract and resign before completing five years, the gratuity may not be applicable unless your resignation is due to employer violations.

Under an unlimited contract, resignation due to employer breaches should not affect gratuity entitlement.

c. Employer Violations:

If your resignation is justified by the employer’s failure to meet legal obligations (e.g., expired trade license or lack of insurance), you retain your right to gratuity regardless of notice period compliance.

3. Recommended Actions:

a. Consult Freezone Authority:

Report the expired trade license and lack of insurance to the Freezone authority overseeing your employment. They may intervene or guide how to proceed.

b. Seek Legal Advice:

Engage a legal advisor specializing in UAE labor law to confirm your rights and ensure proper documentation for immediate resignation.

c. File a Complaint (if necessary):

If the employer disputes your resignation or gratuity entitlement, you can file a formal complaint with the relevant freezone authority or the Ministry of Human Resources and Emiratization (MOHRE).

By following these steps, you can protect your rights while ensuring compliance with UAE labor regulations.

Should you require further assistance or clarification, please feel free to reach out.

Best regards,