Reader Mail Bag:Limited Contract,Resignation,Deductions etc

Termination of Labour Contract-Resignation, Deductions etc

Reader Emails: 24-10-2013

Question 1: I worked with the employer for two years and my contract is limited by (3) years and I obtained a work opportunity at another place. Is the employer entitled to deduct (45) from my dues for non-completion of the contract of employment.

According to what has been mentioned into these questions:

In all cases and according to the Article (116): Opens in a new tab.If the contract of the worker is with a limited period and he submitted his resignation before expiry of the contract without the reasons provided for in article (121)., the worker shall compensate the employer for What he has sustained from damage sue to revocation of the contract through compensating the employer by half of remuneration of the last three months or the remaining period from the contract , or whichever closer , unless otherwise provided for by the contract.

Question 2:My contract is limited and it has not been expired yet, may I submit my resignation and serve for one month of notice?

As for the limited contracts, there is no one month of notice … because the one month notice is for the unlimited contract -therefore , the worker shall compensate the employer by a half of remuneration of the last three months or the remaining period from the contract , or whichever closer from them , unless otherwise provided for in the contract.

Question 3: I submitted my resignation before 6 months from expiry of my limited contract and the employer wants to deduct a remuneration of 45 days. Can he do that?

As per the article (116) from the labor law … the employer is entitled to deduct from the total remuneration – due to your revocation of your contract of employment with no reason.

Question 4: How the compensation is calculated under the limited contract, on the basic or total salary?

Under the limited contract , the compensation is calculated on the last remuneration received by the worker.


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

11 thoughts on “Reader Mail Bag:Limited Contract,Resignation,Deductions etc

  1. I was working for a JAFZA company and resigned within 30 days even before the visa stamping.

    Though I had an E Permit with Me.

    On resignation they asked me for 45 days salary compensation and I had to pay coz they weren’t processing my visa cancellation.

    Could you please throw some light on whether or not the act of charging this compensation was valid ? Was I supposed to be paying 45 days salary?

  2. Dear Sir,
    I started to work here in Abu Dhabi last Sept 5,2015 as home care nurse, I have a working permit with a limited contract. But last Feb 10, 2016 (5th month) my employer gave me termination of contract effective on that date and start of one month notice, after 1 month my visa will be cancelled.
    1. Will I still received my salary from Feb 10 to March 10(end of one month notice)?
    2. What will be the other benefits I will get before or after the cancellation of my visa?
    3. Am I entitle to receive 3months compensation? my probationary period ends on my 6th months which happens to be last march 5, 2016. (but the termination of contract effective on feb 10,2016)
    4.They say theres a “final statement form to be sign before the visa will be cancelled”?

    Thank you

  3. Dear Deepak,
    I have worked with the company for almost 19 months under limited contract, i am resigning reason being the late payments of the salary. and have two months salary pending with company and the commissions based on the sales for the last year which is also pending. i am under the notice period, but he wants it get cleared of things immediately,can the employer cancel the notice period, will i get paid for the notice period. I have asked for the dues clearance before signing off the cancellation documents. am i still liable to pay the employer any thing, am i supposed to get the gratuity , how many days? should he pay my incentives along with my gratuity

    1. Lucian,
      Your employer is required to settle all the dues before the cancellation papers are signed.
      Yes, you should receive gratuity for the number of days you have worked for.

  4. hi sir
    i am under limited contract i have completed 6 mos, and i want to change my job, do i need to pay 45 days of salary as compensation to my employer? is this applicable?

    1. amr,
      No, you don’t have to pay anything.

  5. Hello,

    I am on a limited contract with a non-freezone company in Dubai since 10 months. The company never pays the salary on time, it is always delayed until the 10th or so, even though in my employment contract it says that salaries should be paid on the last day of the month.

    Am I able to terminate the contract without notice based on Article 121 of the labor law (employer not fulfilling obligations), and can I avoid paying 45 days of salary as compensation?

    Also, can I simply resign by email stating the above, or do I have to contact the Ministry of Labor first to document all this?

    I’m pretty sure the employer will go to the MOL, so I want to protect myself beforehand.

    Thanks for the help.

  6. Dear Sir,

    my contract is limited contract and its been 8months in this company. I have asked for 10days advance leave. And they are telling that once after completion of 1year only they will provide advance leave.
    My other colleague had taken leaves before completion of 1year and also before completing 6months.
    I think there is different policy for different people.
    What can be done, please advice.

    1. This is your internal company policy. It is good to adhere. However, we see this always…there is partiality! Sorry for your situation.

  7. Dear sir,
    Good morning This khajapasha i work for Elements fengshui lats 7 month my contract is limited contract employer terminited without any leagal reason please share with me i dont know what to do.

    thank you

    1. If you are a confirmed employee company should give you 45 Days compensation . If you are not confirmed company has the right to terminate with immediate effect.

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