Does UAE Labour Law apply to worker on secondment in Dubai?

Keren Bobker advises an employee who has two contracts - one with the UAE Government and one with his employer.

A worker in Dubai asks Keren Bobker for advice on the UAE Labour Law. Paulo Vecina / The National

I am currently seconded to Dubai and have two work contracts, one with my employer and the other (a labour contract) with the UAE government which is in the basic format. My labour contract is for an “unlimited” term while my employment contract is for a “fixed” term of two years. In terms of termination provisions my employment contract requires three months’ notice, while my labour contract as per the UAE Labour Law only requires two weeks’ notice as I have not completed a year of service. I want to resign, but I am confused as to the notice I need to give. Do I have to give two weeks only, or is it three months? I would also like to know if Article 116 of the UAE Labour Law applies to me. RS, Dubai

Article 16 of UAE Labour Law refers to the penalty applied to an employee who wishes to leave service before the end of the set term on a fixed-term contract. It is somewhat irregular to have two different contracts and I would question the company’s motives for this, but by law the one lodged with the ministry is the one deemed legally valid. This means that while a notice period of just two weeks would be required, there would be a financial penalty which “may not exceed half a month’s pay for a period of three months or for the remaining period of contract whichever is shorter, unless the terms of the contract provide otherwise”. In addition, leaving a job after less than 12 months’ service is likely to result in an employment ban of at least six months. I suggest RS speaks to her employer to agree terms to leave service.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years of experience. Contact her at [e-mail] Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice

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