Limited labour contract
Question: I have been working in a company for almost two years under a limited labour contract, which is going to expire after six months. I am under my husband’s sponsorship and have a work permit from the Ministry of Labour. My questions here are; Can I leave work immediately or by giving a one-month resignation notice to the company as per the labour law? Does the company have the right to reject my resignation? Will the Ministry of Labour impose a ban even if I am under my husband’s sponsorship? How do I calculate my end-of-service gratuity in accordance with the UAE Labour Law?
Answer: I would like to clarify to the questioner that since she is working under a labour contract for a limited period, if that contract is terminated pre-term, she will lose her labour rights except the leaves. The questioner, as per the UAE Labour Law, is not obliged to work for a notice period as she is working under a limited labour contract and the employer has no right to reject the employee’s resignation for any reason. Therefore, she can leave immediately in case she decides to break the limited contract. The questioner might be requested to compensate the employer with an amount equivalent to the salary for 45 days if the employer proves that he has suffered a loss or has been affected by such behaviour. Finally, the employer might request the Ministry of Labour to impose a one-year ban on the questioner for breaching the contract even if the questioner is not under the company’s sponsorship.
When company changes hands
Question: We are a group of employees working in a contracting company. Two months ago, the owner sold the company to a new employer who, in turn, told us that he would make new amended labour contracts with us. He said the previous contracts would not be considered from the date of the sale of the company because as the new employer, according to the Labour Law, he is entitled to amend the previous employment contracts which need to be attested and stamped by him in order to be official and valid. My questions are: What does the UAE Labour Law state regarding the same? Is the new employer entitled to force us to sign the amended employment contracts? We came to know that the new employer is planning to amend our labour contracts so that he can easily terminate the services of most of us. Note that our current contracts are for limited period and they will expire after one year.
Answer: I would like to clarify to the questioner that Article 126 of the Federal Labour Law No. 8 of 1980 states the following: “Where a change occurs in the form or legal status of the establishment, contracts of employment that are valid at the time of the change shall remain in force between the new employer and the workers of the establishment, and their service shall be deemed to be continuous. Both the original employer and the new employer shall be jointly liable for a period of six months for the discharge of any obligations resulting from contracts of employment during the period preceding the change; after the expiry of this period, the new employer shall solely bear e liability.”
— Questions are answered by lawyer Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
