XIV. TERMINATION OF CONTRACT
1. When does an employment contract terminated ?
An employment contract can be terminated in any of the following circumstances:
If the two parties agree to cancel a contract provided that the employee consents to this in writing.
If the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the rules of the law.
As a result of a wish by one of the two parties, and the labour contract has an unspecified term, provided that they observe the provision of the law referred to above, regarding notices and acceptable reasons to cancel the contract without prejudice.
2. Would an employment contract be terminated by the death of the employee or the employer?
An employer's death shall not constitute an end to the labour contract, unless the subject of the contract is related to him personally. However, the contract will be terminated upon the death of the employee or upon his total disability to perform his work.
However, if the employee's disability was partial, and he was able to perform other works which suited his health, the employer shall transfer the employee to another such work, if the employee so requests and give him the same wages for a similar job.
3. Under which circumstances can an employer terminate the employment contract without notice and with immediate effect?
An employer may dismiss an employee without any notice in any of the following cases:
If the employee assumes a personality or a nationality other than his own, or has submitted fake documents or certificates.
If the employee was appointed under probation and the termination happened during that period or at its end.
If the employee commits a mistake causing the employer a big financial loss, provided the employer informs the labour department of the incident within 48 hours.
If the employee violates instructions relating to safety in the place of work, provided those instructions were written and displayed in a permanent place, and the employee has been informed of these instructions orally if he is illiterate.
If the employee fails to carry out his basic duties as stated in the contract and continues to do so inspite of a written interrogation and a warning that his service will be terminated if he repeats his actions.
If he discloses a secret of the establishment for whom he is working.
If he is conclusively convicted by the concerned court of a crime involving honour or his honesty and public moral.
If he is found drunk or intoxicated by drugs during working hours.
If he commits a physical assault on the employer or manager or one of his colleagues during work.
If he becomes absent without a legitimate reason for more than 20 intermittent days or more than 7 continuous days within one year.
4. Can an employee terminate a contract without notice?
An employee may leave his work without notice in either of these two cases:
If the employer has not fulfilled his obligation towards him as provided in the contract or in this law.
If he was assaulted by the employer or his legal representative.
5. Would changes in the structure of the company or its ownership be considered a termination to the contract?
If there is a change in the form of the establishment or its legal position, any contract valid during the time of change shall remain valid and the service considered continuous. Both the previous and the new employer shall be jointly responsible for six months in executing the obligations relating to the contract of the employee in the period prior to the change.
After the end of this six month period, the new employer shall alone be responsible.
6. Can an employee after the termination of contract be employed by other employer in the UAE?
If the nature of the position held by the employee allows him to know his employer's clients or the trade secrets of the employer, the employer may stipulate in the contract that after the end of his contract, the employee shall not compete with him or share in any competing product. The employee has to be 21 years old at the time of signing the contract for this agreement to be legal. The agreement shall be, as far as time, place and nature of work are concerned, limited to what is necessary to protect the legal interest of the employer. However, if there were no agreements, the employee may work for another employer provided in case of the employee being non-national, he is one of the categories exempted from six months or a one year ban, and that he has not committed any violation to the law which makes him subject to a one year ban from working in the UAE.
7. What employment ban provision apply upon the termination of an employment contract ?
One year ban will be stamped on the employee passport by the Immigration office if the employee violates the employment contract or the UAE Labour Law and Regulations. The six months ban will be stamped on the category whom not permitted to transfer visa and on the cancellation of the some.
The following category are permitted to transfer of Residence visa:
Doctors, Pharmacists and hospital attendants.
Qualified Accountants and Auditors
Qualified Administration officials.
Technicians of scientific electronics and laboratories.
Drivers licensed to drive heavy transport vehicles and (buses)
This is in case of transferring the sponsorship from a company or establishment to its counterpart or to any governmental body.
Employees of private oil companies are entitled to transfer their sponsorship from one company or establishment to its counterpart or to any governmental body.
Provided always that:
The employee shall occupy with the new employer the same position he used occupy with the previous employer.
The employee must have a valid residency stamped on his passport.
the employee should have completed at least one year with the previous employer.
The employee must obtain the consent of the sponsor to transfer the sponsorship.
With the following exception to the above rules:
If the transfer was to be from one branch to another branch within the same company, establishment or an establishment owned by the same employer.
If the transfer was because of the transfer of the ownership of the company, establishment or a branch of it to the ownership of another company, establishment or person.
If the sponsor breached his liabilities and this resulted in the closing of the establishment.
If a court judgment was delivered the bankruptcy or the wind up and termination of activities of the establishment.
In the case of the death of the original sponsor and his heirs do not intend to continue in running the establishment and consequently it was closed.
This Rules has been -------- by Ministerial Decree No. 13 of 1991.
8. Which rules, if violated, will result in termination of the contract, and thus the employee being banned from working in the UAE for one year?
If the employee without a justified cause, before the end of a specified employment contract, or in the case of unlimited contract, leaves the employer, without giving one month's notice of termination, or leaves his employment before the lapse of one month's notice.
9. Is the employer obliged to give an end of service certificate to the employee at the end of the service?
An employer shall give his employee at his request at the end of the contract a service certificate free of charge, stating the date of commencement of service, the expiry date, total service period, nature of work carried out by the employee, his last wage and any allowances, if they exist.
The employer shall also return to the employee all that he has deposited with him like certificates, papers, instruments etc.