Questions & Answers
Withholding of final settlement without due cause after resignation
Dear Sir,
I have resigned from my company on Sep. 18 and agreed to serve a notice period of 1 month. I joined them on Aug. 17 and served around 1 year and 2 months.
My releasing month was Oct,18. However, they have not released my final settlement until now. Moreover, they're creating a dispute now, over F&F on gratuity.
They're trying to threaten me with Article 116 clause of forfeiting 45 days salary instead. I am still on their visa (limited visa of a free zone) and running the last 4 months without salary in the UAE.
This thing has really exploited me. I am getting sick of it now and want to take it to the next level. I want legal assistance. I want to sue them if it allows me to do so.
Regards
Dear Sir/ Madam,
Thank you for getting in touch with me on this.
You have not mentioned whether your contract was limited or unlimited? However, I assume it was limited considering the company has quoted Article 116 of UAE Labour Law.
Please note that under Article 116, if you terminate the contract before the expiry period, then you are liable to pay a penalty of the basic salary of 45 days' salary.
They are not authorised to withhold your final settlement on this basis, and even if they wish to, then they can deduct the dues and hand over the remaining dues.
If the company fails to make the payment, then you can raise a labour dispute with the Ministry of Labour by visiting Tahseel centre or call the toll free number 800 60.
I trust you will find the above satisfactory.
You can get in touch with me on 052-9495731
Regards,
Hari Wadhwana
Dear Questioner
We would like to have a look at the employment contract. Also, what was the reason for resigning?
It appears that this was a limited contract and you probably resigned before the expiry date.
Regards
AlBanna Advocates
