I recently joined a company in the UAE but I now want to resign. I am attaching a copy of my contract so that you can see what my employer is saying. I have several questions. Do I have to serve a notice period? Do I have to pay anything to the company if I serve the notice period? If I don’t serve this notice period then do I have to pay anything? If the answer is yes then what do I have to pay? How long can I stay in UAE after my resignation? Do I have to exit the UAE if I join new a company? SS, Dubai
The contract you sent to me shows a fixed-term contract for a period of two years. As you have committed to working for that company for this amount of time, you cannot just leave and must provide 45 days’ notice of resignation, as per the contract term. In addition, as you intended to break the contract, you are liable for a penalty of up to 45 days’ pay on leaving. Article 16 of UAE Labour Law states: “If the contract has been terminated on part of the employee ... the employee becomes liable for compensating the employer against losses incurred by him in consequence of contract termination, provided that the amount of compensation 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.” This equates to 45 days’ pay. The company is not permitted to reclaim any visa or related expenses. Generally a person should leave the UAE soon after their visa is cancelled, but should have a grace period of up to 30 days. It should not be essential to leave the UAE if a new residency visa is obtained, but there are many cases where this has been requested, as it seems to make the process simpler in some cases.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com. 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.
Follow us on Twitter @Ind_Insights
