UAE Labor Law: If I resign during the probation period, will I get an employment ban? – information

Q: I am signing a limited contract with a mainland company in the UAE. If I resign before the end of the probation period, I will be informed that I will be barred from employment. This is real? Do I still need to pay any monetary compensation to the company? If it is enforced, how can I lift the ban?

Answer: According to your inquiry, we assume that you and your employer are in a six-month trial period. In addition, since you are employed by a mainland company located in the UAE, the provisions of Federal Law No. 8 of 1980 (Employment Law) and Ministerial Decree No. 1,094 of 2016 apply.

Employees with a limited contract period may not be able to terminate the contract before it expires to avoid any possible one-year employment ban.

Article 128 of the “Labor Law” stipulates: “A non-domestic worker who resigns without justified reasons before the expiration of the contract shall not resign without authorization with the consent of the employer. From the date of resignation, he shall engage in other work for one year. Any other employer is aware of this. The fact is that it is illegal to recruit or retain the employee before the expiration of the period.”

However, the employer and the employee can mutually agree to terminate the limited-term employment contract after six months of completion. This is in line with Article 1 (I) (2) of Ministerial Decree No. 1094 of 2016, which stipulates: “A new work permit may be granted to an employee after termination of employment in the following circumstances:

Fixed-term contract:

2. Both the worker and the employer agree to terminate the labor contract within the contract period, provided that the worker and the employer brought in from abroad have completed no less than six months of work. These requirements do not apply to:

(a) Employees who are eligible for skill levels 1, 2 and 3

(b) Employees who are eligible for level 4 and level 5 skills if their new work permit is granted to work requiring level 1, 2 or 3 skills and they have the qualifications required for such skill level work.

(c) Employees who are eligible for Level 4 and Level 5 skills, if their old job is in the state and they have completed no less than 6 months of work with their old employer.

(d) Employees who rely on family guarantees and meet work permit requirements.

(e) The employee applying for a new work permit works in the same institution where his work permit was cancelled, and there is no new work permit arising from the cancellation of the work permit, or for any other institution owned by the same employer alone or in conjunction with others Work.”

In addition, if you intend to resign—and because your employment contract is limited in nature—you may have to pay up to half of your three-month salary in accordance with Article 116 of the Employment Law to compensate your employer.

According to the above-mentioned laws and regulations, if you plan to resign, it is recommended that you choose to resign after six months of work. In addition, you can obtain legal advice on the skill level and salary standards for joining a new job from the Ministry of Human Resources and the Emirates.

Ashish Mehta is the founder and managing partner of Ashish Mehta & Associates. He is qualified to practice in Dubai, the UK and India. For complete details of his company, please visit: www.amalawyers.com. Readers can email their questions to: news@khaleejtimes.com or to Legal View, Khaleej Times, PO Box 11243, Dubai.