I have resigned after working in a company for more than two years on an unlimited contract. I have a job offer. My company has agreed to issue a no-objection certificate to transfer sponsorship, but the trouble is calculation of gratuity. The company states that it shall be calculated as a third of gratuity and not on the basis of 21 days for each year. Is this legal? Secondly, am I entitled to a return ticket as mentioned in the employment contract? Also, my contract mentions a notice period of two months, but the company does not want me to serve it as it does not want to pay for the notice period.

 

Article 137 of Federal Labour Law No 8 of 1980 states that where a worker who is bound by an unlimited contract leaves work of his own accord after continuous service of not less than a year and not more three years’ he is entitled to one-third of severance pay. Where the continuous period of service exceeds three years, but not five years, he shall be entitled to two-thirds of severance pay. Where the continuous period of service exceeds five years, he shall be entitled to full severance pay. The questioner is entitled to a ticket if he cancels the visa and returns to his home country. Finally, the employer is not entitled to pay for the notice period in case the employee has resigned and the employer does not want him to serve the notice period.

 

Unlimited contract

I have resigned after working in a company for more than three years on an unlimited contract. I have to join a new company immediately, but have to serve a notice period of three months. I asked my employer to exempt me from the notice period in return for deducting three months’ salary from my gratuity. He rejected my offer. Is serving the notice period mandatory? Can it be increased for more than 30 days?

 

Answer 2: Article 118 of Federal Labour Law No 8 of 1980 states that a contract shall continue to be valid throughout the notice period and the worker entitled to full pay calculated on the basis of last remuneration. The worker is required to serve the notice period if the employer so requests. In this case, the questioner must serve the notice period unless the employer waives it. If the worker fails to work within the said period he might lose his labour rights and the employer may apply to the Ministry of Labour to impose a one-year ban on the worker.

 

Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.