Termination of Employment Contract - Eng
Termination of Employment Contract - Eng
5. Is the compensation for injustice dismissal calculated on the basic salary or the total
salary?
Compensation is calculated on the total salary received by the worker
According to the article (115) in which it is mentioned the word (remuneration) … and the
remuneration is provided for by the labor law, … article (1).
(Remuneration):
" All payments made to the worker on a yearly, monthly, weekly, daily, hourly, piece work, or
production or commission basis. Remuneration shall include raise of living and include as well
any grant given to the worker as a reward for his honesty or efficiency if such amounts are
provided for in the contract of employment or in the internal regulations of the establishment
or have been granted by custom or common practice to such extent that the workers of the
establishment regard them as part of their remuneration and not as donations "
8. My contract is a limited and it has not been expired yet , may I submit my resignation
and serve for one moth 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.
* Example : a limited contract started from 4/3/2005 and expires on 3/ 3/ 2008 , and the
worker submitted his resignation in 5/6/ 2006 .. here, 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.
9. I submitted my resignation before ( 6) months from expiry of my limited contract and the
employer wants to deduct a remuneration of 45) days , is he entitled for so ?
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
10. a worker with limited contract which will be expired after one year, submitted his
resignation due to his personal circumstances : ( family problems at his home country) or
( he obtained another job) shall he pay the compensation amount ?
Yes, the employer is entitled to demand the worker for the compensation amount, because
these are personal matters
* Example (1): A labor with a labor contract of unlimited period, who worked with his
employer for a period of 7 months for a salary of DHS. 25/day…If such worker needs to
resign, he should give a notice of one week to his employer commencing from the date of his
resignation letter
* Example (2): A labor with a labor contract of unlimited period, who worked with his
employer for a period of one year for a salary of DHS. 30/day…If such worker needs to
resign, he should give a notice of two weeks to his employer commencing from the date of
his resignation letter
*Example (3): A labor with a labor contract of unlimited period, who worked with his
employer for a period of five years for a salary of DHS. 50/day…If such worker needs to
resign, he should give a notice of one month to his employer commencing from the date of
his resignation letter
*Example (4): A labor with a labor contract of unlimited period, who worked with his
employer for a period of three years for a salary of DHS. 20/day…If such worker needs to
resign, he should give a notice of two weeks to his employer commencing from the date of
his resignation letter
15. If the employer or the worker refused to receive the termination or resignation letters,
how can we proof the same?
- Both parties should resort to the Labor Relation Department…As for the worker, he
should continue in performing his duties in case he has submitted a compliant.
16. I have submitted my resignation letter to my employer, knowing that I am working
under unlimited labor contract, do the said one month notice to be calculated within the
total service period? Article No. 118
- Yes, such period shall be calculated within the total service period provided that the
worker has actually worked within the said period
17. I have worked during the notice period of one month after I have submitted my
resignation letter… And after the notice period has expired, my employer asked for an
extension of the notice period without any reason. Shall he have the right to do the same?
The employer may extent the notice period after the worker has completed his work in that
period, but the same should be under the consent of both parties.
18. I have submitted my resignation letter to my employer, knowing that I am working
under unlimited labor contract besides, we have already, me and my employer agreed to
reduce the notice period, What shall be my legal position in such a case?
- The one-month notice period may neither be reduced nor may the month period be
relieved from even if the same has happened under the consent of both parities… but the
respite period may be increased, (the month notice)
19. How can the month notice allowance be calculated if the worker has submitted his
resignation letter or if the employer has terminated the service of the worker…and the
worker has already done his duties during the said period?
- It shall be calculated based on the last salary received by the worker.
* Example: A labor with a labor contract of unlimited period, and who worked with his
employer for a salary of DHS.2000… but at present time, he receives DHS. 3000 as the
employer has increased his salary
- In this case, the worker shall have the right to receive the one month notice salary based
on the last salary he received from his employer which amounts to DHS. 3000
20. I have worked with my employer for a period of one year under a labor contract of
unlimited period, yet I have submitted my resignation letter… and I have worked during
the notice period of one month, but it was stipulated in my labor contract that if I submitted
my resignation, I should work for 3 month as a notice period…Do I need to be bound to
such condition?
- Yes, the labor should be bound to the one month notice period, (3 months), if his contract
so requires.
21. In case the worker has submitted his resignation letter, but he suddenly ceased working
before completing the one month prescribed notice period, What shall be the legal action in
this case? Article No. 119
- If the worker didn’t work during the notice period or if he didn’t complete the prescribed
period…he should, in this compensate the employer with an allowance called: (the notice
allowance) and this shall be through the last salary received by him from his employer.
22. In case the employer has terminated the worker’s unlimited labor contract and didn’t
ask the said worker to work during the notice period…, or if he has reduced the notice
period, then What shall be the legal action towards such case?
- If the employer has terminated the service of his employee, he should, in case he is not
desirous to avail the work of his employee during the notice period, pay to the worker the
one month notice period’s salary based on the last salary received by the worker.
And in case the employer has terminated the service of his employee after the later has
worked for a limited period from such notice period, then the employer should compensate
his said employee for the remaining period.
* Example: The employer has terminated the service of his employee, whereas such
employee has worked for 20 days from the one month notice period, but the employer has
asked him to cease working…In this case, the employer has to compensate the worker also
for the remaining period which amounts to 10 days.
23. A worker was terminated by the employer after the former has worked for 11.5
months…whereas the employer has paid him the value of the one month notice period, do
such worker deserves the end of service gratuity?
- The worker shall not have the right to obtain the end of service gratuity as he didn’t work
during the one month notice period.
24. If the worker has submitted his resignation letter and was ready to work during the one
month notice period…and the employer has waived such period, do such worker deserves
the allowance of the one month notice period?
- Yes, he shall have the right to claim for the allowance of the one month notice period.
25. In case the worker has submitted his resignation letter and took a leave… or resigned
during such leave period…shall the said one month notice period become invalid?
- No, it shall not become be invalid and the worker should work for the one month notice
period.
26. May the employer terminates the worker without notice? Article: (120)
- Yes it is possible in some cases including:
1- If the worker has impersonated a false personality or nationality or if he has presented
forged documents or certificates.
2- If the worker is still in the probation period and was dismissed within or at the end of
such period.
3- If the worker has committed a mistake out of which a great loss has resulted to the
employer…provided that such employer has already
reported this case to the Ministry of Labor within a period of 48H from being informed by
the incident.
4- If the worker has violated the work safety instructions or the work place, provided that
such instructions were in writing and displayed in a prominent place.
5- If the worker hasn’t performed his main obligations as per the labor contract…and
continue in so doing in spite of a written investigation made with him for this purpose and
of noticing him not to repeat this violation, otherwise he shall be liable for termination.
6- If the worker has been finally adjudged by a competent court for a crime damaging
honor, general morals or for breach of trust.
7- If he had disclosed the company’s confidential information.
8- If he was found drunk or using drugs during the work hours.
9- If he had assault his employer, the manager in charge or any one of his colleagues during
the work hours
10- If the worker is absent without presence of reasonable cause, for:
- More than discontinuous 20 days during the year.
- More than 7 continuous days.
Note: In all the above cases, the employer should prove the occurrence of the relevant
incident.
* Example: I have worked with my employer…and he has accused me for the crime of
breach of trust…an investigation in the matter was carried out and as a result I was finally
adjudged for a fine and imprisonment… ACCORDINGL Y, the employer terminated my
service…so I am claming for the amount of the notice period and the compensation such
termination.
- The worker shall not have the right to have the amount of the notice period based on
Article: 120 of the labor law as such worker was dismissed as a result of breach of trust…so
the employer shall have the right to terminate him without notice.
* Example: I have been absent from duty for more than 7 continuous days…when I am
back to work, my employer dismissed me without any reason… I am claiming for the
amount of the notice period.
- The worker shall not have the right to have the amount of the notice period if he was
absent without reason for 7 continuous days… but if he has any reason, such as an
approved sick leave, his employer shall not have the right to dismiss him.
27. If the employer is having a right to dismiss the worker without notice…, shall such
worker have the right to leave the work without a notice? Article: 121:
- The worker may have such right in the following two cases:
* If the employer has violated his obligations before the worker with respect to the terms
provided for in the contract and the law.
* If an assault had happened against the worker from the employer or from his
representative.
Note: The worker should prove the occurrence of both cases.
* Example: I am working with my employer… but he didn’t pay me the salary of 3
months…so I have left the work…but my employer is claiming for the notice period?
- The employer shall not have the right to claim for the notice period as he has violated the
law and the labor contract based on Article: 121
28. My employer has dismissed me without any reason after I have passed the probation
period… do such dismissal considered arbitrary? Article: 122
- If the employer has dismissed the worker, after the probation period without any reason,
or if the reason of such dismissal has no connection with the work or if it is due to a
compliant to the concerned authorities against the employer or for a case filed against the
employer…then such dismissal shall be considered arbitrary.
29. If the employer has arbitrary dismissed me without presence of any reason and I am
damaged due to the same…how can such damage and arbitrary dismissal be determined?
Article: 123
- The competent court is the party which adjudge the employer to pay the compensation for
the worker…and it is the party which estimate the value of such compensation as per the
work nature and size of damage incurred by the worker in addition to his period of
service…provided that the compensation value shall not exceed the salary of 3 months
calculated on the basis of last salary received by the worker.
30. The employer has terminated my service due to the fact that I am not fit from the health
point of view, shall he have the right to do the same? Article: 124:
- He may not have the right to do the same for health reasons before the worker has utilized
all his legally due leaves. However any agreement or condition contrary to this Article shall
stand null and void.
31- Can I have the right to obtain an experience certificate after I have spent my work
period with my employer? Article: 125:
- The employer should give the worker, on the basis of the later request, and at the end of
his contract period, a free experience certificate…such certificate should include:
A- Date of joining the work
B- His contract expiry Date.
C- Total service period
D- Type of work.
E- Last salary obtained in addition of other entitlements, if any.
* The employer should also give back to the worker all his certificates, tools and equipment, if
any.
32. I have worked with my employer, but he have sold the establishment for some other
person…how can I obtain my work dues? Article: 126:
- Based on Article: 126, the service shall be continuing even if the establishment was sold to
any other person…both new and old employers shall be jointly responsible for a period of 6
months…and after this period the new employer should bear the responsibility alone.
* Example: An establishment was sold by the original employer to some other person, but
the original employer didn’t settle the labors dues…then 3 months were elapsed since it was
sold to the new employer…in this case both the new and old employers shall be jointly
obliged to pay the workers dues…and after 6 months the new employer shall bear such
responsibility alone.
33. I have signed the labor contract…whereas mentioned in the said contract a term which
stipulates that after the expiry of my service or during suspension of my work, I should not
work with any other competing company for a period of two years? Article: 127:
- If it was agreed in the labor contract as such…then the worker should be bound to the
same…and should not work with any competing company all through the period mentioned
in the contract… provided that:
1- The worker should be of 21 years of age when the said contract was concluded.
2- To fix the time…e.g.: Not to work with any competing company for a period of two years
from the date of cancellation.
3- To fix the place…e.g.: Not to work with any competing company in UAE…or any
particular Emirate.
4- Type of work… e.g.: In the same company’s field of work… or the same job.
* Important:
The condition of non- competition was not stipulated in the labor contract approved by
Ministry of Labor, but it was mentioned in the labor contract concluded abroad or in the
internal labor contract concluded between the two parties or in the work offer, do this be
valid?
37. I am employed under a limited period contract for 3 years and I have asked my
employer not to renew the same…then who shall pay the costs of the return ticket? Article:
131:
- If the worker has completed his limited period contract and if he didn’t want to renew the
same…the employer must be obliged to pay his return tickets.
And if the worker has joint some other work, then his new employer should be obliged to
pay his said return tickets.
38. If I worked under limited or unlimited period contract and submitted my resignation,
shall I have the right to ask for return tickets?
- If the worker has resigned or terminated his service contract, he should bear the costs of
the return tickets.
39. I have completed my labor contract, whereas there is a stipulation in such labor contract
showing that my employer should bear the costs of my family return tickets in addition to
the baggage shipping costs, have I the right to bound him to the same?
- If such stipulation is present in the labor contract, the worker shall have the right to claim
for the said costs…
40. As for the return tickets, shall my employer have the right to return me to the capital of
my home country or to the place he has already brought me from?
- To the place he has already brought you from.
41. My employer has cancelled my labor card, and I am now present at the labor camp, but
he asked my to leave this accommodation, What is your opinion about this?
- The employer shall have the right to ask the worker to leave the accommodation, if he has
paid to the worker all his work dues.
42. If a labor compliant has been referred to the court…from when do the period of 30 days
for vacation of the accommodation shall start to go into effect? Article: 131:
- The employer shall file a compliant to vacate the worker from the accommodation…, and
the 30 days period shall start to be effective commencing from the date in which the
employer has deposited the worker’s dues with the Ministry as a trust…, if the worker
didn’t vacate the accommodation after this, the concerned authorities should take the
necessary action.
44. Shall the leaves without pay be calculated within the service period? Article: 132:
- The period of leaving the work without pay shall not be included within the service period.
45. I have worked with my employer for two years and 5 months…, shall the End of Service
Gratuity be calculated for the parts of years? Article: 133:
- The worker shall have the right to have the End of Service Gratuity for the part of the
year if he has completed one year of service or more.
46. Shall the End of Service Gratuity be calculated for the total salary? Article: 134:
- The End of Service Gratuity shall be calculated according to the last salary, (Basic)
obtained by the worker…, this shall be true for all workers getting their salaries on
monthly, weekly or daily basis…, and shall be calculated based on the average salary for
workers receiving their salaries based on piece. So the allowances shall be included in the
basic salary, such as: the accommodation allowance, transportation, overtime and other
allowances…………etc.
* Important:
A worker who receives his salary on piece…,e.g. He may receive DHS. 1000 for the piece…,
or DHS. 500 for the piece…, in this case the average salary only should be calculated, i.e.
* His total salary for 6 months…, to be divided over 6…to obtain the average salary:
Total salary for 6 months = 25000/6 = DHS. 4166 which is the average salary
47. If a worker died, shall his employer pay his End of Service Gratuity? Article: 136:
- If the worker died, his employer must pay his End of Service Gratuity to his hires.
48. I have worked with my employer for the year 1975, i.e. before the issuance of the Labor
Law in 1980; shall I have the right to claim for the End of Service Gratuity for my service
period with my employer before the issuance of the Federal Labor Law in 1980? Article:
136:
- The worker shall not be entitled to have the End of Service Gratuity for the period before
the issuance of the Federal Labor Law in 1980 unless the worker was a national citizen.
* The Unlimited Period Contract:
- In case the worker has ceased working:
49. Kindly show how can the End of Service Gratuity be calculated if the worker has ceased
working when he is employed under unlimited Period Contract? Article: 137:
1- If the worker’s service period is not less than one year and not exceeding 3 years, he shall
be entitled to have 1/3 the value of End of Service Gratuity, i.e. 7 days in each year.
2- If his service period has exceeded 3 years but less than 5 years he shall be entitled to have
2/3 the value of End of Service Gratuity, i.e. 14 days in each year.
3- If his service period has exceeded 5 years he shall be entitled to have 21 days as a value of
End of Service Gratuity for each year of service.
* And if the service period has exceeded 5 years he shall have 30 days as End of Service
Gratuity for each year of service.
* Example:
I have worked with my employer for 2.5 years, how can my End of Service Gratuity be
calculated, knowing that I have ceased working on my own will, and I have unlimited
period contract with a salary of DHS. 1500?
- If the service period does not exceed 3 years, this worker shall have 7 days End of Service
Gratuity for each year of service…parts of the year shall also be included, i.e.
The two years shall be multiplied by the Gratuity’s days: 7x2 = 14 days
- In case the employer has dismissed a worker of an unlimited period contract without
reason after completing one year of service…, such worker shall have the right to receive 21
days End of Service Gratuity for each year:
* Example:
- If the worker has worked for 3 years and 7 months and his employer has then dismissed
him, such worker shall be entitled to have:
- 21 days for each year if his service period didn’t exceed 5 years.
- 21x 3 + 21/12x 7= 75 days
* Other Example:
A worker of unlimited Period Contract was dismissed after completing 6.5 years of service ,
He shall be entitled to have an End of Service Gratuity of:
21x5+ 30+30/6 = 105+ 30 + 15 = 150 days, whereas 21 days were calculated for the first 5
years…, and 30 days each year for the above to this.
50. When shall the worker be banned from having the End of Service Gratuity? Article:
139:
- The worker shall be banned from having the End of Service Gratuity in two cases:
* If the worker was dismissed from the service for any reason set forth in Article: 120 of the
labor law…, or if he left the work for the purpose of avoiding dismissal for the same reason
* If the worker has willingly ceased working without notice…, and for reasons other than
those shown in Article: 121 of the law, and if he is working under unlimited period
contract…, or if he didn’t complete 5 years of service with regard to the limited period
contract…, and submitted his resignation letter.
51. I have worked with my employer…, whereas present in the establishment a box called
the “saving box” in which the employer was used to put in it an amount of money for the
account of the workers as an End of Service Gratuity…, in case I have reached my end of
service period, shall I deserve to have from such amount? Article: 140:
* The worker shall have the right to receive from this amount, if the employer is depositing
the same in the saving box against his legal obligation towards the End of Service
Gratuity…, and if it was stipulated in the saving box as such.
* The worker shall have the right to receive What he was entitled for from the saving box in
addition to the End of Service Gratuity if the saving box didn’t stipulate that What was
deposited by the employer in the said saving box is against the employer’s legal obligation
towards the End of Service Gratuity.
52. I am working in an establishment, in which the system of pension and insurance is
adopted…, in case of my end of service; shall I have the right of option between having the
pension and the End of Service Gratuity? Article: 141:
- According to Article: 141:
The worker may chose between having the pension and the End of Service Gratuity or to
have his dues in the pension or insurance box or whichever preferred to him…, (except with
regard to nationals, whereas the Pensions and Insurance Authority’s terms shall be valid
wherefore)…, Law No. 7 for the year 1999 regarding Social Pensions and Insurances.
Return Tickets
* The return tickets shall be in the worker’s account if he resigned without reason before
the expiry of the limited period contract or resigned with respect of the unlimited period
contract.
* The return tickets shall be in the employer’s account if he dismissed the worker, without
reason or cause provided for in Article: 120
* The return tickets shall be in the employer’s account if the worker has completed the
limited period contract.