Questions & Answers
The consequences of resignation in a limited labour contract
Dear Sir,
I hope you are doing well.
My neighbour brother went earlier to Dubai for packing work in a hotel for 2 months. Due to the condition of work & not getting a proper salary, he decided to resign from his job.
When he intimated the same to the employer they said he should pay AED 4500 before leaving & his own ticket. He is from a very poor background that's why he came for AED 900 salary.
But he gets actually 750 only without food. Need your kind support to help him to come back to India.
Limited Contract
A limited contract cannot exceed two years' term and it must mention the notice period ranging from a minimum of one month to a maximum of three months.
Either party can solely terminate the original contract or a renewed contract provided he complies with the legal consequences of early termination which include:
- Notifying in writing at least one month in advance but no longer than three months
- Honouring the contract obligation for the duration of the notice
- Compensating the other party to the level that was agreed to by both parties, provided this does not exceed the equivalent of three months' gross wages.
Basis for termination
A limited contract can be terminated on the following bases:
- If the term of the contract expires and is not renewed.
- If both, the employer and employee mutually agree to end it.
- If a worker commits any of the violations as mentioned under Article 120 of the Labour Law.
