Reader Mail Bag: When can the contract be terminated?

Termination of labor contract

A reader from Dubai asks:

When can an Employment Contract be terminated either by employee or employer?

A contract is a legal document/agreement that binds at least two parties to one another. When creating a contractual relationship, both parties are subject to fulfill the terms and conditions of the contract. Most contracts end when the validity period of the contract has expired, and in many cases the contracts are renegotiated and renewed.

As per the Article (113) of UAE Labour Law the employment contract is deemed to be terminated in any of the following cases:

  • The employment contract may be terminated if both parties agree to cancel a contract provided that employee consents to this in writing.
  • The contract can be terminated if the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the rules of the law.
  • At the opinion of either party in unlimited contracts provided that the provisions of this Law regarding warning and acceptable causes for termination of the contract without abuse are fully complied with.

Employees may terminate their contract by resigning or an employer may terminate contract by dismissing an employee. If an employee feels that he has been discriminated against or has not been treated according to the law or company policy, he can terminate the contract by taking assistance from Labour.

In many situations, termination of agreement, may be the only option, and if you are experiencing the same it is always better to seek the necessary legal advice and help form Law. 

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.

55 Comments

  1. HI,

    Please advice me..I worked in a company in unlimited contract.This month will be my 3rd year and expect to have my annual pay and vacation schedule. Bad news is, my manager called and said i have to work only up to AUG 10 coz they no longer need my position. They said they will give me 2-3 months to find a new job then they will cancel my visa. Is this even legal?I ask them i need a written letter or email saying they want me to stop working on Aug 10 but they refuse to give and today they told me just continue to work until u find a job or until the manager will come back from vacation. They are very inconsistent and keep on changing what they are telling me. I know that ill have more benefits if they terminate me than resignation and for sure they know too thats why they keep me hanging and refuse to give termination letter. Please advice me..should i give up and resign instead if i found a new job?or let them terminate me? thank u so much

  2. hi Deepak

    i am MBA graduate,Certificates have been attested by uae embassy and foriegn affars. Now i am in a sales executive visa.i would like to change my organisation due to high pressure.Here i have been working since march 27{hardly 5 months},is it have any ban if i change the company.if have tell me how to over come ban

  3. Hi,
    I have free zone visa dubai and I have been working here in Abu Dhabi, my company terminate me due to it’s own negligent and blaming me for that.
    Now I want to know what can be done :
    – They took all my documents, passport, ID
    According to free zone visa policy am I entitled for return ticket from company!

    What is the law for Free Zone visa – m I suppose to work in Abu Dhabi?
    If so and company closed because of it’s own reasons, what are I am eligible for in order to return back home.

    Can anyone help me here.

  4. an agent promised to get me a veterinary work here but I ended up in a hiring labour company… I just noticed that my employer has stamped my visa without me signing the contract…and last month he deducted my salary saying that my visa money is not complete yet…and I’m just new in UAE

  5. Hi Deepak ,

    I have recently (2month) joined a well settled company(before in India). I m in sales and i have imence pressure, can i leave the Company… If I leave the Company, do i need to pay..

  6. Hi deepak,
    I’m working with a trading company for last 3 years and 11 months. My laboure card and contract expires on 7th Jan 2016. But my visa expires in March 2016. May be if a company offer me good salary so I will renew but the problem is I need to go vacation in January so can I renew contract and go on vacation or I have to wait till the visa expires on passport. Or incase I don’t want to renew so I can cancel visa directly as the contract expires. And one last question can I fly back home with expired laboure card with a time on passport visa????pls answer

  7. Dear Deepak,

    I left my job of 10 months to join this company a general trading est.as General Manager At the time of interview they were very good but just after 1 month everything changed. They threaten to pay only basic salary if targets not met. They even deducted my allowance in the first month salary illegally. Recently they told me that they are abolishing the General Manager position as they cannot pay my salary(7000 Aed) as it is very high according to them. So no they are forcing me to sign on Change Of Status to a supervisor post and accept less salary which is not decided as yet.
    It was a big decision for me to leave my previous company to join here only because of higher status and pay as I am qualified. How can they do this ? If I don’t accept their decision they are saying I have to resign.
    1 What can i do in this situation?
    2. If I resign do I have to pay them Visa charges?
    3.Should I not sign COS & wait for them to terminate me?
    4.How long can I stay in Dubai after cancelling the visa?
    5. will get a ban as I am not resigning but forced to?
    Is really Dubai Labor law helpful for employees? why should I accept this shit from my employer who interviewed me 4 times before hiring me? Couldnt he think of this before spoiling my career ? why all of a sudden now?
    PLEASE HELP! and advice

  8. I am in an unlimited contract, and my probation period just ended. What would be the best way to terminate the contract and avoid the labor ban?

  9. Dear Deepak,

    Im in a limited Contract – Completed 13 months – Abudhabi visa. Now the company wants to terminate me. The reason is Absence with out valid justification and it is true

    My current salary is 4500. If im terminated by the company,
    1. I will get any benifits ?
    2. Can i Join for another company ?

  10. my uae visa validity will expire today but my employer (semi-government company?still don’t send me my plane ticket. Is there any grace period on my visa ?or my company will apply me again new visa so I can enter uae and how many days I will wait again?

  11. I have been working under labor visa, and not yet completed with my probation period, But I have got a new opportunity to work outside UAE, but for that particular visa I need NOC from my present employer, which he is not ready to give that to me saying that I am still under probation, what can I do to get the NOC, without that my new visa is not being approved… help me with this please

  12. I am a btech degree graduate and was working as civil engineer since December 2014 up to June 2015. Now they cancel my visa. Also they will give me NOC . Will I get a ban if I applied for same post in another company? My basic salary is doubled in the new contract. Also if I am getting ban will my company be able to lift the ban. my salary is less than 12000AED

    • Mohammed,
      With NOC, MOL may cancel your labour ban.
      Please check with MOL.
      If it is a termination, MOL also considers not to impose labour ban.

  13. Dear dipak sir….
    I completed graduation MCA..The LLC Company was given to me a visa construction carpenter…I came dubai Aug. 2014 ….my emrates starts on Feb. 2015 expery date Feb.2017…I asked to my boss where is my 6 months period..my boss told me the company renual period is expired…that’s way no problem but our record wise your contract expery period is Aug.2016…actually before company wxy llc insted of xyz llc..which period is correct…I need to go my home…If I will go to vacation not come is any bans…here i got degree attestation…If I will go to court or indian embassy any problem please tell me deepak sir….my mail I’d.

  14. I am working in a company on general electrical engineer visa for 3 months and my contract is unlimited. i want to change company, is there will be ban?
    whether our employer can employ ban on us in any hidden method??

  15. want to cancel my present contract after one year bcos av gotten a better job is it possible under the labour contract

  16. Hi,
    I am working in a private company. My contract is unlimited. I will complete 2years in this company in July 2015. If I renew the contract and incase I want to resign after 6 months (say Jan 2016). Will there be a ban? How long will be the notice period?
    Thanks

    • Chippy,
      You will not be banned as per your length of service.
      But you should check with MOL as these rules are dynamic.

  17. Do they need to give 1 month salary??? I have given 500 aed as visa deposit…will the company pay it back?? Any other amount as compensation for termination?? Thanks dude for your help

  18. My passport is with my.company they said will cancel my visa and give my passport at airport. How much time it will take to cancel my visa. Please help me.
    Can I ask one month salary as they are terminating. And one more thing I have given 500 AED as deposit for visa.. please understand and help

  19. I have joined a company 3 days back on JAFZA visa it is a sales executive visa…they terminated me for no reason..i guess I have worked very well even my owner is not happy by that…I have proposed to change few policies of their work which were unproductive.

    Yesterday they ask me to leave and visa cancellation process will be followed.

    Can I search job in dubai, does it impact as ban.

    Please help me with this information.

    • Basith,
      Yes, after cancellation you will have up to 30 days grace period.
      You will not face any labour ban.

  20. Dear Deepak,

    I was terminated during my probation period without notice.I have signed my visa cancellation already at the Ministry of Labour,but my employer does not want to give me my passport.They said they will give it to me at the airport together with my plane ticket going home.Can they force me to leave UAE? Do i still have the right to use my 1 month grace period to look for a new job?

    Thanks,
    Eimreh

  21. Dear Deepak. I work in the company from 2008 December 23rd. My contract is unlimited.The company is Lebanese, myself from Uzbekistan.When I first joined the company they have promised me a promotion as reward for my hard work and more over proving myself. I decided to resign in 2003 because of it was empty words and with all my efforts I haven’t got any promotion but they keep promoting people who knew and did lesser and lesser with every promotion and were Lebanese mostly. They convinced me to stay and offered me a seniority in one of the brunches,since then I have been transferred 10-12 times and they always send me to another locations with the reason that they need me there or my attitude they say and do now I am supposed to transfer again and i have refused to transfer with explaining to them that I can’t keep transferring my house and work location and it has nothing to do with attitude I just can’t afford another shifting. And keep working for the company without any recognition. My manager spoke to me yesterday and told me that I have the attitude and no one likes working with me and I fought with everyone etc they keep standing me for 6 years and it’s mentioned in my contract that I can be transferred anytime to a location they choose or else I can resign. I haven’t been looking for a new job and actually hoped with every promise they make but today I feel I am trapped. Is it against the law if they transfer me all the time?, or does my manager has a right to force me to transfer or resign this way?.please advice. thank you. Dilana

    • Dilana,
      It is up to the company to transfer according to the requirements.
      They can’t force you to resign.

  22. I am working in a company 24 hours since 2014 march.and they are not given permission even go for church as well as personal needs so I expected to apply driving licence for try another job then they ordered to do resignation by myself .as I have many financial burden I don’t have money to take ticket also now…i have requested two three times to show my labour contract but they didnt give so could u give me a advise that I can lift my ban because provided I get other job only I can clear my financial problems ..

    Hoping your favourable replay.

  23. Hi,

    I was working in a company, two weeks back i forwarded one letter not to renew my contract and it expires on 3 Feb 2015.
    Today Manager called me and gave me one termination Letter. Is there any ban in future?
    I was working for AED 3800,
    New company Offered me 8000,
    How can i lift Ban ?

  24. Hi, I have started working in company for more than a month already and I want to leave the company. I do not like the management and also there is no employee welfare. I have not signed labor contract yet and don’t have emirates ID, if i resign now, will i get a ban?? I’m still under probation right?? Pls help me as I am really worried and I don’t know what to do.

  25. Dear Deepak,

    I have joined B.C. LLC company last June 2014 and up to October 2014 I have not been paid any single dirham. So I submitted my resignation letter and manager refused to sign it.
    2 days after, manager called me and told me to go to the office and there the manager terminated me (falsely accusing me of opening and sending company confidential files).

    1. I opened the files accused to me only because it is part of my job.
    2. I only send my personal files that belong to me to my sponsor (i am on residence visa)

    Would termination still take effect? If yes, why? I have already submitted my Resignation before it. I would like your opinion on this. Thank you

    • Bishibeng,
      If you are accused of something that you have not done, this is an illegal accusation and you may file complaint with MOL.

  26. Hi,

    I am a small company and work from home. I had hired a lady to work with me on a business development/marketing position for a salary of 15000 AED. She was also allowed to work from home. In the 4 months out of 6 months of her probation, she took more than 15 sick leaves and did not generate a single penny in terms of business. I lost over 50,000 AED in her salaries. She then went on emergency unpaid leave. I have asked her to return company assets as she did not do any work and I needed them for my use. She suddenly started misbehaving and told me that she is not interested in working. Now I want to terminate her as she has caused a major loss for the company without any contribution. She has officially been working for over 6 months, but has been on leave for last 2 months. Can I terminate her and cancel her employment contract without having to pay any penalties as an employer?

  27. I am working with a compnay in Dubai under a limited contract. My salary is 800 dhs and every month 200 dhs is being deducted from this 800 dhs. I was duped in signing the contract since there was a lot of tension on me when I first arrived in Dubai. I was able to traced my contract from the ministry of labour website before I saw that the company has written false statements on the contract I signed without knowing. I have kept silence for the past 6 months since I know that I am on probation. Allah being of help to me, I have won a contract in a new company with a salary of 5000 dhs bases on my educational qualification and after I spoke to my boss on this, He dont want to release me. All he is telling me is he will speak with his P.R.O. I am convinced and I dont know what to do now. I need your help and advice if I can terminate the contract due to the salary deduction or on the false statements on my contract.

    • Stephen,
      Unfortunately you may have a ban.
      Request your company for an NOC.
      IF you have signed contract, there may be no way out.

  28. At present i am working in a trading company as an accountant on store keeper visa with limited contract my visa for 2 years will going to expire in November – 2014.

    I just wanted to know the following.

    1. month before notice period must or not

    2. can i sign cancellation form before final settlement and immediate after resign or wait for notice period completion.

    3. i heard employer can’t cancel when you are in notice period its true or not

    4. i want to search job in another company can i face interviews after completing of my notice period.

    5. my basic salary is 2000/- dhm please tell me how much gratuity i have to receive.

    6. as per uae the employer release the employee after notice period or not b coz i have to search job in one month period, which one is my vacation period. can i stay in dubai for one month for searh better job. can i search ne job

    please suggest me i will be very thank full to you

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