I am a woman who had worked in a company for more than two years as a sales manager under a limited period contract. Three months ago, I signed a new limited period contract for another two years. Two weeks ago, I resigned as I got a warning from my company because of my weak performance as stated by the manager. The employer stated that he would request the Ministry of Labour to impose a one-year ban on me for breaking the limited contract from my side. Further, he told me that I should pay a compensation equivalent to 45 days’ salary as per the law. What are my labour rights in this situation? Is the employer entitled to request the ministry to impose a one-year ban on me? I have heard that since I had completed two years as per my first contract, I should be allowed to transfer the sponsorship to a new employer. Is that true? As per the UAE Labour Law and labour ministry rules, am I entitled to claim compensation for the leave periods in the past, as I have not received the amounts during those period? How shall my end-of-service gratuity be calculated? Am I entitled to a return ticket if the Ministry of Labour imposes a ban on me? My employment contract states that if the labour contract is terminated by the employer or the employee, the employer shall give me a return ticket to my home country.
I would like to clarify to the questioner that she has violated the labour law because she terminated the limited employment contract pre-term. As mentioned by her, she would not have had any problem in transferring her sponsorship to a new employer since she has completed two years in service as long as she has not signed a new limited contract. Therefore, in this case, the questioner is not entitled to the end-of-service gratuity. As per the UAE Labour Law, the questioner is entitled to the leave allowance only for one year. The questioner is entitled to a return ticket as long as she is not joining a new company. As for paying the employer a compensation equivalent to one-and-a-half months’ salary, this depends on the proof provided by the employer before the competent court that he had been affected by the termination of contract pre-term. Finally, the employer may request the ministry to impose a one-year ban on the questioner due to such violation.
Cost of damaged equipment
I am an employer based in Dubai. A month ago, one of my employees, because of his fault, damaged a company equipment, the replacement for which cost the company Dh50,000. What is the maximum amount that could be cut from the employee’s monthly salary as per the UAE Labour Law? In case he resigns and leaves work, is it possible for the company to recover the cost of the replaced equipment from his end-of-service benefits?
I would like to clarify to the questioner that Article 61 of Federal Law No. (8) of 1980 states the following: “Where a worker, either through his own fault or in violation of the employer’s instruction, is guilty of causing a loss, damage or destruction of tools, machines, products or materials owned by the employer or in the latter’s custody, the employer may deduct from the worker’s remuneration such amount as may be necessary to repair or replace them as fully as possible, provided that the amount so deducted shall not exceed five days’ remuneration in each month. The employer may request the competent court through the labour department concerned for permission to deduct more than this amount if the worker has capital assets or any other source of income.”
Finally, the questioner has the right to deduct the remaining value of the damaged equipment from the employee’s end-of-service gratuity in case the employee decides to resign and leave work before paying the full amount.
— Questions are answered by lawyer Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
