Do I have to pay a penalty if terminated after completing my contract period?

Dear Inquirer,

Based on your message, if you have already completed more than one year of service, the clause requiring you to pay AED 5,000 for early resignation should no longer apply, unless there is another binding clause in your contract.

As for the warning letter, it appears to be a standard notice related to performance. Unless it specifically states a financial penalty, you are not automatically required to pay any charges. However, the mention of a “penalty procedure” could imply future actions depending on company policy.

To protect your rights and avoid any unexpected deductions or legal issues, we recommend booking a consultation or assigning our legal office to review your contract and guide you accordingly.

Dear Client,

You do not have to pay any charges or penalties if you resign or are terminated now, since you have already completed more than one year, and your contract only requires payment if you have left before one year.

The warning letter about low performance is a standard disciplinary procedure and does not mean you owe any fees unless your contract or company policy clearly states otherwise.

If the company terminates you for performance reasons, they must follow proper procedures and pay you all end-of-service benefits, notice period salary, and any other dues.

You are only required to pay a penalty if you resign before the minimum contract period specified (which you have already completed).

Summary:

You do not need to pay the AED 5,000 or any other charges if you leave or are terminated now, as your contract period condition has already passed.

As per UAE Labour Law (Federal Decree-Law No. 33 of 2021), since you have completed more than one year of service (1 year and 3 months), the early termination penalty of AED 5000 mentioned in your contract no longer applies.

If the employer terminates you due to low performance, they must follow legal procedures, including providing at least two written warnings and offering a chance to improve.

Termination for performance reasons does not entitle the employer to demand any financial compensation from you unless there is evidence of gross misconduct or financial damage as defined under Article 44.

Therefore, based on the law, you are not liable to pay any charges unless otherwise proven under these conditions.

For legal support, contact us.

Thank you!

The clause in your contract stating you have to pay AED 5,000 if you leave before one year is no longer applicable because you have already completed more than one year and three months of service.

This condition has been fulfilled. You do not have to pay them any charges simply because they issued a warning letter for low performance.

A warning letter is a disciplinary measure, not a financial penalty.

If you need further clarification, you may ask us.

Dear questioner,

As you have finished the one-year term, that clause of 5000 AED is no longer applicable. UAE Labour Law outlines specific disciplinary penalties for poor performance.

These penalties, as per Article 39 of the Federal Decree Law No. 33 of 2021, can range from written warnings to termination.

Financial penalties can include the deduction of wages (for not less than five days per month) or suspension without pay (for a period not exceeding 14 days).