Resignation under a limited contract and possibility of a labour ban

Dear Questioner,

Please note that as per Article 116, if an employee revokes the limited contract for any reason other than Article121, the employee shall be required to compensate an amount which shall not exceed ½ month wage for three months or for remaining period whichever shorter.

In your case, your employer can request a labour ban for breaking the limited contract regardless of the notice period or compensation.

This is in accordance with Article (1)(I)(2) of the Ministerial Decree 766 of 2015 on Rules and Conditions for Granting a Permit to a Worker for Employment by a New Employer, which states:

"The two parties (employee and employer) mutually consent to terminate the contract during the course of its term, provided the employee has completed a period of not less than six months with the employer; the latter provision is waived for employees who qualify for skill levels 1, 2 and 3 as per the ministry's classification."

However, there may be no employment ban if you fulfil the skill level and salary in the proposed new company.

This is in accordance with Article 4 of the Ministerial Order No. 1186 of 2010 which states:

"As an exception to the provision of the Item No. (2) of Article 2 of this Resolution, the ministry may issue a work permit to an employee without requiring the two-year period in the event that the employee is starting his new position at the first, second or third professional levels after fulfilling the conditions for joining any of these levels according to the rules in force at the ministry, and provided that his new wage is not less than AED 12,000 at the first professional level, AED 7,000 at the second professional level and AED 5,000 at the third professional level."

Hope the above explanation clarifies your concern.

Thank you.

Regards,

Rajasree Ravivarma

Al Nassar Advocates & Legal Consultants