Questions & Answers
What can a company do if an employee agrees to stay but then stops reporting to work?
Hello,
My employee provided a resignation. Our company offered a salary raise and made a deal with him where he agreed to continue with us, but it’s not on paper.
He suddenly stopped coming to work, stating he doesn’t want to work anymore.
What rights do we have as a company, and what can we do about it?
Dear Client,
Thank you for your inquiry!
In the UAE, employment contracts and any amendments, including salary increases or withdrawal of resignation, must be documented in writing and registered with the Ministry of Human Resources and Emiratisation (MOHRE) to be legally enforceable.
Verbal agreements or informal understandings, while appreciated, do not carry legal weight.
If an employee submits a resignation and later agrees verbally to continue working with revised terms but fails to formalize this agreement, the company’s rights are limited if the employee subsequently stops attending work. In such cases, the original resignation and contract terms will prevail.
Therefore, if the employee ceases to report to work without a formal retraction of resignation or a signed contract amendment, the company may treat this as a resignation or job abandonment and proceed with termination in accordance with UAE labor law.
It is essential to document all communications and ensure compliance with notice periods and final settlement obligations.
To avoid similar situations in the future, we recommend that all changes to employment terms be documented in writing and registered appropriately.
Please let us know if you require further assistance.
Best regards,
Dear Inquirer,
If an employee resigns and then later agrees to continue working without a formal written agreement, this can lead to complications. While the verbal agreement may be binding in certain circumstances, the lack of formal documentation leaves both parties exposed to potential legal issues.
1. Your Rights as an Employer:
- Verbal Agreement: If the employee accepted the salary raise and the new terms, the verbal agreement may still be enforceable, but it’s harder to prove without written documentation.
- Breach of Contract: If the employee suddenly stops showing up for work, this could be considered a breach of contract, entitling you to take legal action depending on the terms of their employment.
- End of Service Benefits (EOSB): If the resignation is considered valid, you may be required to pay the employee’s EOSB. However, if the employee is in breach, the company might argue for certain deductions.
2. What You Can Do:
- Seek legal action: Depending on the situation, the employee may be liable for damages due to non-performance or breach of the verbal agreement.
- Consult with a lawyer: It’s crucial to consult a legal expert to assess the situation, draft a proper termination agreement, and avoid further complications.
To address this issue properly and ensure your company’s rights are protected, book a consultation with us today.
We are happy to assist you and provide the best legal services that meet your needs.
Kindly contact us via call or WhatsApp.
Since the employee resigned from the outset and there was a verbal agreement to return to work, you can demand that the employee provide legal notice and/or pay compensation for the notice period, in accordance with UAE Labor Law.
- Claiming compensation:
If the employee fails to return to work after reaching an agreement, you can claim compensation for damages resulting from business interruption or the loss of your investment in training the employee.
- Inquiring about salary for the period of employment:
Even if the agreement is not documented, you must pay the employee for the period of employment before the employee ceased to attend.
- Other legal procedures:
You can file a lawsuit before the Labor Court if an amicable settlement is not reached with the employee. You can attempt to resolve the situation by communicating with the employee and clarifying their obligations and rights.
Although verbal agreements can be valid, the lack of formal documentation can complicate matters legally. Make sure to record any future agreements in writing in the contract or company documents to ensure your rights are protected.
According to UAE law, if the employee has submitted their resignation and you reached an oral agreement for them to continue working, this agreement is not legally binding unless it is formalized in writing.
If the employee stops showing up for work without following the proper legal procedures for resignation or termination, you have the right to take legal action against them.
This can include filing a claim with the Ministry of Human Resources and Emiratisation (MOHRE) or pursuing legal action to recover your rights.
For further clarification and legal assistance, you can contact our legal center via WhatsApp for more details.
Under UAE Labour Law (Federal Decree Law No. 33 of 2021), if an employee resigns but later verbally agrees to continue working (e.g., due to a salary raise) without formal documentation, and then stops attending work, the employer's legal recourse is limited without written proof.
As per Article 44(8), the employer may terminate the employee without notice if they are absent without a valid reason for more than 7 consecutive days or 20 intermittent days in a year.
If the employee resigns without serving the contractual notice period, the employer may claim compensation equivalent to the notice period under Article 43(3).
To act, the company can file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE).
For legal support, contact us.
Thank you!
Dear questioner,
If the increment was documented on paper, then there are chances for recovery of the loss. If he had withdrawn the notice period, you can ask him to either serve the notice period again or provide the necessary compensation for it.
If you need our assistance in this matter, kindly share your WhatsApp number.
Generally, if an employee resigns, they are obligated to serve a notice period as per their employment contract or the UAE Labour Law.
If the employee's sudden departure causes significant financial loss to your company (e.g., due to project delays, needing to hire urgently at a higher cost), you might have grounds to claim damages.
Send a formal written communication to the employee. Acknowledge his initial resignation and the subsequent verbal agreement for him to continue employment based on the new terms.
If you consider his current absence a breach of the employment contract, remind him of his obligation to serve the notice period as per his original contract or the law.
If you need further clarification, you may ask us.
