The UAE Labour Law: Resignation and Limited Contracts in 2020
The United Arab Emirates (UAE) is known as one of the fastest-growing economies in the world. It has been attracting millions of expatriates from different countries for years. However, when it comes to employment in the UAE, there are certain regulations and laws that employees and employers must abide by. One of the most essential laws is the UAE Labour Law, which outlines the rights and responsibilities of employees and employers.
One of the most important aspects of the UAE Labour Law is the provisions concerning resignation and limited contracts. These provisions are particularly relevant to employees who are hired under limited contracts.
Firstly, let`s define what a limited contract is. A limited contract is a type of employment contract that has a specific start date and end date. It is often used for temporary or fixed-term employment, and it is different from an unlimited contract, which has no set end date.
According to the UAE Labour Law, employees who are hired under limited contracts are required to complete their contract term. This means that they cannot resign from their job before the end date of their contract without facing consequences, unless the employer and employee mutually agree to terminate the contract.
If an employee wishes to resign from their job before the end date of their limited contract, they must first obtain the written consent of their employer. Failing to do so may result in a penalty, which can be a hefty sum of money.
However, if an employer breaches the terms of the limited contract, the employee may be justified in terminating the contract early without penalty. This may include, but is not limited to, failing to pay the employee`s salary or failing to provide the agreed-upon work environment.
In addition to early termination of limited contracts, the UAE Labour Law also specifies the notice period that an employee should give before resigning. Employees who are on limited contracts must give notice at least one month before the end date of their contract.
It`s important to note that the notice period required for unlimited contracts is different. Employees who are on unlimited contracts must give notice at least 30 days before resigning.
In conclusion, the UAE Labour Law provides guidelines for both employers and employees when it comes to resignation and limited contracts. Employees who are on limited contracts must complete the term of their contract, unless both parties agree to terminate the agreement. Employers who breach the terms of the limited contract may face early termination without penalty. Additionally, employees on limited contracts must give at least one month`s notice before resigning. By understanding these regulations, employees and employers can maintain a healthy and productive working relationship in the UAE.