EDP002: Termination of Contract (Podcast)

Emirates Diary Podcast – Episode 2 – Termination

In the Emirates Diary Podcast episode, you will hear about Deepak and Thenji discuss about Ministerial Decree 765 which covers Termination of Employment Contract under Limited Contract and Unlimited contract.

termination podcast

Experts on the panel of Discussion:

  1. Thenji Macanda of Taylor Wessing;
  2. Deepak Machado of Emirates Diary.

Show Notes – What is covered in this Episode?

  • Termination of Limited Contract – How can it be terminated?
  • Terminated of Unlimited Contract – How can it be terminated?
  • Compensation when Terminating Limited or Unlimited Contract for employee or employer;
  • Reduction in Limited Contract Terms;
  • Article 120 – Reasons of termination by Employer;
  • Notice period;
  • Reasons for bringing this Decree by MOL;
  • Ways for companies to retain staff and employees.

The episode will remove your doubts on various scenarios in which you can be terminated and what your options are if you are terminated whether under Limited contract or Unlimited Contract. With the new decree MOL has made the rules clearer and it is now clarified as to the scenarios in which you could be terminated.

If you have queries and doubts, please comment below and I will to answer them.

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.
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    Labour Ban Demystified! (Podcast ep3)
    Inbox

    Deepak Machado
    Hello Sandra, By far one of the most discussed topic on Emirates Diary is about Labour Ban. And MOL recently has amended this to cancel labour ban …

    Sandra Nyaguti
    to Deepak
    21 minutes agoDetails
    Hi Deepak

    Many thanks for what you are doing I have a question regarding cancellation i hope you could guide me through

    My employer cancelled my visa in October 2015 that i was medically unfit given the fact that my medical certificate delayed. A fews days later when I returned home my medical certificate came out and i was medically fit to work. Used my ignorance of the law to their benefit saying the company would be blocked if i over staying and would have to pay a fine.

    They paid me something like 1200 dirhams(cant remember exactly how much it was) and on top of that i had to pay a days over stay at the exit (airport).

    I really feel that i was unfairly treated and seeking for justice. Was it right that they terminated my contract without unfitness proof? Does it mean i was banned from entering the UAE? If no,what can i can do? Am i supposed to be compensated? Can i take any legal actions when i return to UAE?

  • Hello Deepka,
    We really appreciate your job.
    Please advice me in my situation,i worked for aprivate company in abu dhabi under alimited contract for 2yrs and 7month and thereafter submitted one month notice resignation and at the end of my notice they requested me to continue offering my service for almost 9days which i did so.After the 9days they asked me to pay 3000dirhams to cancel my visa which i paid and received a receipt but unfortunately i was surprised at the time of clearing me they only paid me my last month salary plus 9days inclusive of my 2month salary vacation without even acoin on my benefits.currently am working in dubai under new sponsorship but whenever i think about my benefits amicably i feel like opening acase to this company to recover my sweats,please advice me before i take legal action.
    Regards

    Ronald.

  • now the fixed term contract is 2 years so in this case how the gratuity is calculated for the fixed term contract holders? is it same same as like as before ? only after 5 years of service?

  • In the event of termination on an unlimited period contract, on what basis is the pending leave calculated, is it only basic or basic + allowances

  • Hello Mr.Deepak
    I just wanna ask if it is possible to resign in my current job and apply to other company..
    Im under limited contract and under probation of six months..I started to them October 2015..
    If I resign under probation is it possible to give me ban?
    Please answer my question..

  • I gave resignation letter paying 45 days of salary. But my company isnt going to cancle me more over they called me tolabour court and then one of the labour person who work their told me u might get GULF ban. Bla bla I think ministry of labour is more ministry of company because they were talking on their fabour so iys been 26 days today that I have cancelled . And now they are asking e 5k to cancle aince i have an emergency to go home what iam I supposed to do??? I finished my 1 year and a month now and I can’t even go for emergency vacation

  • Dear Mr. Deepak,

    Good day!

    I have been working in this company for over 2 years now and last year the company has changed its company name and registered into new Trade License.

    Now the management has announced that they will be terminating all the staff from (old company) name and we will be receiving a settlement.

    Whoever wish to continue must sign a new contract to (new company name) or issue offer letter with new profit center strategies.
    As of the moment we don’t receive any offer letter / or new contract yet.

    We don’t have any idea what will be the new offer is. WIll the salary and other benefits be the same or not.

    Please i need your view on this matter. Kindly help me.

    Your earliest response is greatly appreciated.

    Thank you.

  • Hi,
    I, joined a company 1 month back and is on probationary period. I am having residency visa and is under the process of getting work permit. Now i am pregnant. I would like to know if i resign after delivery( which is not sure ), will the contract that already prevailed effects me?
    should i inform my employer before getting the labour contract/ work permit?
    What are the other legal bonds applicable for me if i am resigning / continuing.
    I have signed an offer letter tat states a contract period for 2 years and that i have to pay 35000 if not compleated.

  • Hello Deepak, i am working in a freezone company under limited contract of three years.I finish 1 year and 6 months.If i resign and serve notice period of 3 months how do i have to pay to my employer.I thought i have to pay 45 days but now they are saying as per the new labor law we have to pay to the employer.Waiting for your reply.Thanks.

  • Hi Deepak

    I have a query. I am residing in Abu Dhabi on my husband’s sponsored visa. I worked with a comany under a limited contract of 2 years but resigned after 3 months. My salary there was 3500 dhs. I am a post graduate (MBA). Please help me with the following questions
    1. Is ban still applicable as per the new labor law? (For both company & spouse visa)
    2. As per the law if any one party breaks the contract he/she needs to pay 45 days salary. Is this for the basic salary or gross salary?
    3. If I want to apply for new job, is there a need of any NOC from my ex employer?
    4. Since I am a post graduate, do I need to have an offer of at least 5000 dhs before labor card can be issued? Is this applicable for husband visa candidates as well?
    Eagerly looking forward to your reply as it is going to help me and few of my friends!
    Regards,
    Meg

  • Sir joined job in hotel with unlimited contract but i was being terminated on 176th and work area was on RAK FZE will be posed for BAN if yes how many months but visa was cancelled before boarding flight to India

  • Hi,

    I have “Sales” profession in my visa. But my qualification is B.Tech. At the time of visa processing my certificates was not attested. Now its my third month in the company, and my probation period is for 6 months. I would like to know if I want to change the job before finishing the probation period will there be any ban and should I need to pay any money to the company.

    Please give me a solution.

    Thanks

  • Hello Deepak, thank you very much and Thenji for enlightening us on this platform. It has been a source of encouragement and knowledge to numerous employee who are struggling out there with diverse of job related issues.
    I will like to know if “I can change my job any moments from now or when can I without labour barn..?
    I am a University first degree holder in the field of Environmental Science with UAE attestation certificates. I am currently working in a firm as a helper under a limited contract with the following conditions:
    1. I was to pay 3000 Dhs for visa, I deposited 1400 and we mutually agreed that the remaining balance of 1600 be deducted from my salary subsequently.
    2. The salary is 900 Dhs only, other benefits as per UAE labour law.
    3. Surprisingly, the whooping some of 300 Dhs (representing about 33.3 % of my gross salary) was deducted at once for visa and so it would continue for the next 5 months.
    4. I have worked for just 1 months and half now, no offer letter has been given yet apart from the labour contract that we signed before i went to my country and no copy was given to me.
    I feel like am losing my freedom gradually and I have not been treated fairly. Efforts to redress amicably has yielded no positive result.
    You could be surprised how I accepted the offer ! I did simply because I came into UAE late last year and I couldn’t secure any better paid employment till the last week of my visa expiration date because of the implementation of the new labour law that increased the numbers of Jo seekers from only applicants with tourist visa to include those who are already working but considering getting a better offers.
    The company adviced me to go back to my country with a promise of processing my visa upon payment of the said amount which I did as mentioned earlier, much appreciation to the company for being faithful and loyal to the promise made.
    Considering the huge amount of money I have spent in the past, I decided to accept the offer hoping things would get better with time.
    However, the conditions is becoming too stringent for me to bear, am thinking of paying off the remaining visa balance so that I can look for a better offer. (is the payment necessary?)
    Kindly look into my case and advice me on a better ways of addressing the issue.
    Thanks for reading my long epistle and hoping you would respond promptly with suggested solutions to my plights.
    Thanks.

  • Dear Mr.Deepak,

    ive been working for my company as a publication graphic designer since 2015, about 1 year and 3 months now. I used my annual leave last May 1 2016 and started working again last June 1 2016. But my company did not give me ticket and until now they are not giving my annual leave payment(23days delayed now since june 1 2016).

    I have many problems with my company.
    -delayed salary
    -no health insurance
    -working 8hrs in ramadan.straight with no break
    -working 9hrs on regular days without overtime payment

    so i decided to give a resignation letter last june 13 2016.stating there that i will resign in the company effective july 14 2016 and will start my one month notice period june 14 2016 until july 14 2016. But my boss doesnt want to sign my resignation.

    i really dont know what to do. Please help. I need your advice.

    sincerely,
    JOHN

  • Dear Deepak,

    I have resigned and willing to serve 1 month notice period as per my limited contract (2years). I have completed almost 9 months and probation period is also over (6months).

    My HR is insisting for visa canceling fees (3500 AED + 45 days salary and 1 year BAN) on my exit Accordingly i need to verify coz i wanted to switch-over for the new job,

  • Last month I have received termination latter form my company (government oil company). with one month notice period from 2/08/2016 to 1/09/2016. i was working in 60/30 cycle job (12 hr duty) now my company has terminated me before i go on my cycle leave( full salary paid) from 12/08/2016 to 11/09/2016. now thy are considering mt notice period during my leave and giving my leave compensation only Basic+ supplementary allowance.But in regular cycle leave i am getting full salary (with my all allowance). Now they are saying you are terminated so you will not get other allowance. But actually I have worked 12 hr for this cycle leave before my termination. so should I get full salary of my leave as per low? please advise me what can I do? My Visa also canceled by company on 6/010/2016

  • Hi sir
    Just want to know that I already resign but now they are making my life miserable for this month and they wants to cut my benifits what may I do if they do that.
    1 year and 7 months worked unlimited contract please let me know they did this to many staff

  • I’m working as a civil engineer in a contracting company since march 2015. My visa finishing on march 2017. But now they trying to cancel my visa before visa finishes. I asked them for a notice period. They given the one month time. So I’ll finish my contract on January.
    So now as a legal what can I do. What are benefits I should have from my employer.
    Respond me soon please.

  • Dear Deepak,

    If the employee salary is paid in USD. Does it mean that the gratuity has to be in USD or AED?

  • Hi sir
    I work with a construction company, and I have been there for 9months today. But the problem I have is my boss doesn’t take care of us incase we fall sick, have a fracture, and even when we have severe body pain from the hard work we do. We are forced to load sand and cement and mix mortar for plastering, when on our employment contract we are employed as painters. If stay at home because you are sick or for any reasons,he will turn off the AC, the at the end of the month, he deducts 50ad from your salary. But our salary id 1000ad. What can I do please…

  • Hi dear… I were joined with the current employer on 18-Apr-2017 and I were in probation, I was trying to get the Job Confirmation from HR. Probation period already been completed on 18-October-2017 and still I dont have the job confirmation from the concerned department. Now I have a better offer as well from other employer. So if I resigned from the current employer what difficulties I will face. Regards
    rasheed, [email protected]