Understanding Labour Law in UAE for Resignation: Limited Contract Resignation in UAE

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Understanding the Difference Between Limited and Unlimited Contracts in the UAE

In the UAE, there are two types of employment contracts: limited and unlimited. The main difference between them is the duration of the contract, as their names suggest. These contracts are based on the labour law in UAE for resignation and are governed by the Ministry of Human Resources and Emiratisation (MoHRE).

Here’s a breakdown:

1. Limited Contract: This type of contract has a clear end date that both the employer and employee agree upon. The limited contract resignation UAE is often used by employers who need workers for specific projects or tasks that have a defined timeline.
2. Unlimited Contract: Unlike the limited contract, the unlimited contract doesn’t have a set end date. It offers more flexibility. The UAE labor law on resignation for unlimited contracts states that they can only be ended by mutual agreement between the employer and employee. However, there are certain situations where either party may end the contract without the other’s consent, and this is subject to specific conditions.

Resignation Law for Limited Contract in Government Sector in UAE

In the UAE, labour law in UAE for resignation in the government sector is clearly defined. According to Abu Dhabi Human Resources Law No. 6 of 2016, which covers government employees, limited contract resignation UAE must follow specific steps mentioned in Articles 80-81.

When an employee wants to resign, they must submit a resignation letter in writing. The administration has up to 30 days to respond. If the administration does not respond within that time, the employee should continue working as usual.

After resigning, the employee may be asked to stay for up to two months while they hand over their job responsibilities. During this period, they will receive a full salary for the time they stay, in line with the UAE labor law on resignation.

Resignation Law for Limited Contract in Private Sector in UAE

In the private sector, the labour law in UAE for resignation is guided by Federal Decree No. 33 of 2021, which came into effect in January 2022. This law applies to both local and expatriate workers.

According to the UAE labor law on resignation, if you have a limited contract resignation UAE, the contract ends when the specified period is over unless you agree to extend it. Even if this is stated in the contract, you must still submit a written resignation.

Employees are required to provide a valid reason for quitting, especially if the timing of the resignation is critical for the company. In this case, the employer may delay the resignation. Additionally, employees must notify their employer at least 30 days before leaving.

During the notice period, the contract stays active, meaning the employee continues their duties and will receive their regular salary for that time.

What Should Be Included in a Limited Contract in UAE?

When you sign a limited contract in the UAE, it’s important to make sure that certain things are clearly stated to protect your rights. The labour law in UAE for resignation requires the contract to have these key details:

1. The start date of the contract
2. The end date of the contract
3. The type of work you will be doing
4. The workplace location
5. The salary amount
6. The total duration of the contract

These points help make sure that you and your employer understand what’s expected.

What Are the Rights and Obligations of Employees Under Limited Contracts in UAE?

If you're thinking about signing a limited contract, it’s important to know your rights and responsibilities according to UAE labor law on resignation. Here’s a quick overview of what you should expect:

Rights

According to the labour law in UAE for resignation, you have the right to take public holidays off with full pay (Article 28).

If you work on public holidays, the employer must either give you an extra day off or pay you an additional 50% of your regular wage for the days worked (Article 28).

After your contract ends, you must receive your final payments within 14 days (Article 53).

Employees are entitled to paid annual leave: 30 days for each year worked (Article 29). If you worked for more than six months but less than a year, you get two days of leave per month.

If you are a woman, you are entitled to maternity leave: 45 days with full pay and 15 days at half pay.

Expats who have worked for one year or more are entitled to end-of-service benefits (Article 51).

Obligations

You must follow the usual working hours, which are eight hours daily or 48 hours per week (Article 17).

The work given to you must be completed by you; you cannot outsource it to someone else (Article 16).

If you have access to confidential information or clients, you cannot work for a competitor for two years after your contract ends (Article 10).

Termination Coinciding with an Employee’s Leave

According to UAE labor law on resignation, if you’re on leave and your employer wants to end your contract, the notice period starts only when you return from your leave. However, this is subject to mutual agreement between you and your employer, and it can be changed.

Resigning Without Serving the Notice Period

Under limited contract resignation UAE, Article 45 of the UAE labor law allows employees to resign without serving the notice period under certain conditions. This can happen if:

1. The employer doesn’t follow the terms in the contract.
2. The employer mistreats the employee.
3. The employer gives the employee new tasks without their consent.

Notice Period Allowance

If you don’t serve the notice period as agreed, Article 43(3) of the UAE labor law says that the party who didn’t follow the notice period must pay the other party a "notice period allowance." This allowance is usually one month of the worker's wage, even if the absence doesn’t cause any harm.

Labour Law in UAE for Resignation: Understanding the Key Points

According to labour law in UAE for resignation, there are certain rules for both employers and employees when ending a job. If you have a limited contract resignation in UAE, it is important to follow the correct steps. Under a limited employment contract, both the employer and the employee must serve a notice period before the contract can be ended.

In some cases, the employer can terminate the contract without giving notice. This is possible if the employee is involved in actions like:

1. Forging documents or identities
2. Causing major financial losses to the company
3. Disobeying safety orders, putting the company at risk
4. Failing to meet contract duties after warnings
5. Revealing company secrets
6. Attacking a fellow employee
7. Being under the influence of alcohol or drugs
8. Breaking public morality laws
9. Being absent without a valid reason for over 20 days in a row or 7 days in a row

These situations are serious under UAE labor law on resignation, especially cases like absconding. If an employee leaves without permission or doesn't show up for work, it is considered absconding, and it could lead to a labor ban in the UAE. It's very important to follow these rules carefully to avoid legal troubles.

Steps to Follow for Limited Contract Resignation in UAE

Whether you're an employer or an employee, both parties must follow steps when ending a limited contract. This is part of labour law in UAE for resignation. First, the party that wants to end the contract must inform the other party in writing and serve a notice period. The notice period should not exceed three months and must be agreed upon by both the employee and the employer. If you are unsure about the terms, it is advised to seek legal advice.

It is very important to keep your commitments during the notice period. If the process isn't followed, the party terminating the contract can be held legally responsible.

Can I Resign After 6 Months in a Limited Contract in UAE?

Yes, you can resign after 6 months if you're on a limited contract resignation in UAE. However, you must follow the legal steps, including serving the proper notice. There may also be compensation to be paid if you resign early.

If you decide to leave before the contract ends, both parties must adhere to the UAE labor law on resignation. Here’s what each party must do:

Employee:
If the employee wants to end the contract early, they may have to pay early termination compensation. This could be:

1. Half of three months' salary (including allowances)
2. If less than three months remain on the contract, half of the remaining salary

Employer:
If the employer wants to end the contract early, they also must pay early termination compensation. This would be at least three months' salary (including allowances) or the salary for the remaining period if it’s less than three months.

Key Points to Remember About the Probation Period

In the UAE, the probation period for a limited contract resignation in UAE cannot exceed 6 months. After this period, the probation time is considered part of the total service. Both employees and employers must give written notice if they want to end the contract during probation.

For Employers:
During probation, the employer must give the employee at least 14 days' written notice if they want to terminate the contract.

For Employees:
If the employee wants to resign during probation, they must give 14 days’ written notice if leaving the UAE, or 30 days’ written notice if staying in the country and moving to a new job. The new employer will usually cover the recruitment costs unless both parties agree otherwise.

Can the Limited Contract in UAE Be Renewed?

Yes, a limited contract resignation in UAE can be renewed after 3 years, as long as both the employee and employer agree to the renewal. However, it is important to remember that the UAE labor law on resignation should be followed, and the conditions for renewal must be clearly understood by both parties.

What Are the Rules for Resignation with a Limited Contract in UAE?

If you want to resign while on a limited contract, make sure to check if a notice period is mentioned in your agreement. Following the notice period is crucial to avoid legal disputes. It is recommended to give at least one month's notice to the employer.

Keep in mind that resigning before the end of the contract is considered early termination, so it is important to review the labour law in UAE for resignation. Make sure you understand the compensation rules for both the employee and employer.

Compensation for Employer Termination

When the employer ends the contract, they must compensate the employee. This compensation should not exceed 3 months' worth of wages, including salary and gratuity.

The exact amount of compensation is decided based on the agreement between both parties. It could also be the salary for the remaining time in the contract, depending on which amount is shorter. If there are any disagreements, legal services can help both sides come to a fair decision.

However, if the employee decides to end the contract for reasons not stated in UAE Labour Law for resignation, they may have to pay back the company for any losses caused. It's important for employees to understand the consequences of breaking the contract as per the UAE labor law on resignation.

Unless the contract says otherwise, the compensation can't be more than half of a month's pay for each of the last three months of the contract, or the remaining time of the contract, whichever is shorter. Legal services will help guide you through the proper process.

Ending a Limited Contract

Ending a limited contract can happen in a few ways. The most common one is when the contract naturally expires based on the dates mentioned in the agreement. This is one of the main differences between a limited contract and an unlimited contract. The limited contract has a set end date, while the unlimited contract does not.

If the employer doesn’t extend the contract, the limited contract ends naturally. The employer must pay the employee’s end-of-service gratuity and any unused leave to finish the employment relationship.

Both the employer and the employee can agree to end the contract early. But both parties must meet all legal requirements before doing so. It’s a good idea to consult a lawyer for legal advice before making any decisions to end a contract.

Even if the limited contract hasn’t naturally ended, many employees ask: “Can I resign after 6 months in a limited contract in the UAE?” The answer is yes! You can decide to resign at any time, but you must follow the proper steps, including giving notice. This is required unless the employer violates the UAE Labour Law for resignation.

In UAE labour law resignation limited contract, limited contracts may not require a notice period. However, in some cases, there could be a notice period if both parties agree to it.

As an employee, it’s very important to review the entire contract carefully to understand your rights and responsibilities.

End-of-Service Gratuity for Limited Contracts

The end-of-service gratuity is a special payment made by the employer when an employee’s service ends. It’s a way to show appreciation for the work done during their time at the company.

Eligibility for Gratuity

Employees with limited contracts who work for 1 year or more are entitled to an end-of-service gratuity when they leave their job.

How Gratuity is Calculated for Limited Contracts

1. For employees with more than 1 year but less than 5 years of service, the gratuity is calculated as 21 days of salary for each year worked.
2. For employees with more than 5 years of service, the gratuity is 30 days of salary for each year worked after the first 5 years.

The total gratuity amount can never be more than the salary for 2 years of work. If an employee resigns before completing 5 years of service, they will not be eligible for gratuity. However, if they resign after completing 5 years, the gratuity will be calculated based on the above rules.

Employee Rights Under UAE Labour Law for Resignation

According to labour law in UAE for resignation, if an employer ends the contract, employees have the right to take one unpaid day off each week during the notice period to search for a new job. However, this right only applies if the worker informs the employer three days in advance. This is part of the law to support employees in finding new employment during the notice period.

The UAE labor law on resignation also covers what happens if an employee is on leave when the contract is being ended. In these cases, the notice period starts only when the employee returns from leave. The timing of the notice period can be changed if both the employer and employee agree to it.

As per labour law in UAE for resignation, employees have the right to resign without notice under certain conditions. If an employer does not follow the terms of the contract or if the employee is assaulted by the employer, the employee can leave immediately. The same rule applies if the employer assigns tasks that the employee did not agree to.

Can I Resign After One Year in a UAE Limited Contract?

Yes, under limited contract resignation UAE, employees can resign after one year, as long as they have agreed on the terms with the employer and the resignation is stated in the contract. UAE labor law on resignation allows this as long as proper notice is given.

Understanding Gratuity and Resignation in a Limited Contract in the UAE

In the past, employees on a limited contract in the UAE could only receive end-of-service gratuity if they completed the full contract term. Labour law in UAE for resignation also stated that employees could only receive gratuity after serving for more than five years.

Now, with changes to UAE labor law on resignation, limited contracts are set to last a maximum of three years. If you are asking, "Can I resign after 6 months in a limited contract in the UAE?" the answer is yes. Employees who work for more than a year are eligible for gratuity. However, if you have worked for less than a year, you are not entitled to gratuity.

If you feel you are not receiving the gratuity you deserve, it is a good idea to seek help from labour lawyers. If there is any misconduct by employers or employees, you can file a complaint to protect your rights.

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FAQ About Limited Contract Resignation in UAE

Can You Check Your Labour Card Online in the UAE?

Yes, you can easily check your labour card online through the Ministry of Human Resources and Emiratisation (MoHRE) website.

Can You Resign Under a Limited Contract in UAE?

Yes, you can. According to labour law in UAE for resignation, if you have a limited contract resignation UAE, you are allowed to resign as long as it is agreed upon with your employer and is mentioned in your contract.

Can I Resign During the Probation Period in a Limited Contract in the UAE?

As per UAE labor law on resignation, foreign workers who want to quit during their probation period must notify their employer at least 14 days in advance. If you don't provide this notice, you may face a labor ban.

Can I Resign After 6 Months in the UAE Limited Contract?

Yes, you can resign after 6 months. The limited contract resignation UAE law gives employees the flexibility to resign even after completing the initial 6-month period.

Can I Resign After 1 Year in the Limited Contract in UAE?

Yes, you can resign after 1 year. However, the labour law in UAE for resignation may require you to discuss and agree on compensation for ending the contract earlier than planned.

What Happens if the Limited Contract is Terminated Without Notice?

If either the employer or the employee terminates the contract without notice, the party at fault must compensate the other party with the equivalent wage for the notice period, as stated in the UAE labor law on resignation.

Am I Entitled to Receive Gratuity in a Limited Contract if I Resign?

Yes, you can receive gratuity if you resign from a limited contract in UAE. The amount depends on your length of service, as follows:

1. Less than 1 year: No gratuity
2. 1 to 3 years: 1/3 of 21 days' salary for each year
3. 3 to 5 years: 2/3 of 21 days' salary for each year
4. More than 5 years: Full 30 days' salary for each year

Will I Be Responsible for Visa Charges if I Resign in the UAE?

No, you are not responsible for the visa charges if you resign. The employer must cover the visa fees, even if you resign during the probation period. This is part of your rights under labour law in UAE for resignation.

What if I Resign from a Limited Contract in UAE Without a Valid Cause Before the End of the Term?

If you resign without a valid cause before your limited contract resignation UAE ends, and you are a non-national worker, you might face a one-year job ban. During this time, no employer can hire you, according to the UAE labor law on resignation. This rule discourages employees from leaving their jobs without a valid reason.

Conclusion

In the UAE, understanding the rules around limited contract resignation UAE is important for both employees and employers. If you are planning to resign during or after the probation period, it's essential to follow the labour law in UAE for resignation to ensure a smooth transition. By respecting the notice period, understanding gratuity, and knowing your rights regarding visa charges, you can avoid legal issues. Remember, UAE labor law on resignation provides clear guidelines to protect both parties. Always check with your employer or HR to ensure you are fully aware of your rights and responsibilities before making any decisions.

Disclaimer

The information provided here is for general informational purposes only and should not be considered as legal advice. While we strive to ensure the accuracy and relevance of the content, TimeChart cannot guarantee that the details are completely accurate, up-to-date, or error-free. The information shared is based on the labour law in UAE for resignation, limited contract resignation UAE, and UAE labor law on resignation available at the time of writing, but laws and regulations may change over time.

TimeChart is not responsible for any actions taken based on the information provided in this content. Users are encouraged to seek professional advice from legal experts, HR professionals, or consult government resources for the most up-to-date and accurate information regarding their specific situation.

By using this content, you acknowledge that TimeChart is not liable for any legal consequences, misunderstandings, or losses that may arise from reliance on this information. It is also advisable to check with your employer or HR department and refer to official government sources for the latest updates and regulations, as this content is not a substitute for professional or legal consultation.

We do not guarantee that this content will be updated regularly, and therefore cannot be held responsible for any inaccuracies that may result from outdated information. Users are advised to verify all relevant details with proper authorities before making any decisions based on this content.

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