Classifieds powered by Gulf News

No gratuity for employees who break their contract

If I break the limited employment contract, will I be subjected to a ban?

  • Published: 21:07 March 24, 2011


I am working for a Dubai-based company under a limited contract whose duration is for three years. Out of this, I have already completed more than two years of service. I now have a job opportunity with better entitlements and would like to leave my current job. I took the matter up with my employer and he has no objection to my leaving. My question is: if I break the limited employment contract, will I be subject to a ban and, if so, what will be its time period? Will my employer terminate me without requiring the Ministry of Labour to impose any ban on me? In case of a ban, is there any exception in this regard? I am a university degree holder and have completed more than two years with my existing employer in accordance with the current Ministry of Labour’s law, which requires the employee to complete at least two years before transferring to a new company. Am I entitled to claim for end-of-service gratuity? Please advise. Thank you. 

I would like to clarify to the questioner that if he breaks his limited contract pre-term the Ministry of Labour will not impose a ban because, firstly, he has completed the period of two years with his employer that is currently required by the Ministry of Labour for transferring to a new sponsor. Secondly, the employer will not ask the Ministry of Labour to impose a ban on the questioner. Therefore, the questioner may transfer to a new sponsor without any problems.

As for the questioner’s eligibility to end-of-service gratuity, I would like to tell him that an employee who breaks his limited contract is not entitled legally to claim end-of-service gratuity. However, he may claim any annual leave pay which he has not taken within his employment. Additionally, the employer may claim from the employee a compensation equivalent to 45 days salary if the employer can prove he is adversely affected by the employee breaking the contract.
Overtime work

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