Question 1: Questioner from Dubai asks: I have worked for a company for more than one year on a limited contract. After two months, the agreement will expire. I have a lot of problems with my company. The company used to hold my salary until I collected money from the clients. My question is, in case I revoked the contract, how would the compensation for the employer calculated? Will it be one-and-a-half-month salary and will it be basic salary or total salary? Does the employer have the right to ask the Labour office to put a ban for more than six months? And in case, the labour department puts a ban will it be applicable in the Free Zone Area? I need to cancel and join a new job because I found very good offer from a good company. Please clarify in detail as per the UAE labour law. Am I entitled to get my end of service rights?
Answer 1: I would like to clarify to you that the Article No. 116 from the Labour Law which indicates the following:
Where a contract is revoked by the worker for reasons other than those specified in Article (121), he shall be required to compensate the employer for any prejudice the latter sustains as a result: provided that the amount of compensation shall not exceed half the worker’s remuneration for three months or the residual period of the contract whichever is shorter unless the contract contains a provision to the contrary.
Therefore, if you revoke the contract, you will be violating the mentioned Article and the competent court may ask you to compensate the employer and the compensation amount will be calculated as per the total salary not as per basic salary and you also will lose his end of service right. In addition to that the employer has the right to ask the Labour Office to impose a one-year ban. But this type of ban is not applicable in the Free Zone Area.
Rental Dispute
Question 2: The questioner from Dubai asks: I have rented a villa in Dubai in June 2012 for two years. I have paid all the instalments to the Real Estate Office in post-dated cheques. The contract will expire after one year. For some reason I want to break the contract. I have sent a letter to the Real Estate Office in this regard. The Real Estate Office has rejected because the agreement is for two years as per Real Estate Office. And they have refused to return the remaining cheque instalments. In the Tenancy Agreement there is a clause that gives right for the tenant to break the contract at anytime on the condition that he gives two months written notice. My question, is it possible to break this contract with the reference to this clause mentioned? Will the Rental Committee accept this clause? The Real Estate Office told me that I have to provide a new tenant to replace me and the clause mentioned in the rental agreement is not applicable and it’s against the Dubai Rental Law as per the real estate office. Please clarify
Answer 2: To answer this question, I would like to clarify to you that as per the clause mentioned in the tenancy contract you have the right to break the Contract after providing the Real Estate Office a two months notice. Therefore, you have the right to ask for the refund of the instalments cheques and you, as per the Dubai Rental Committee, are not obliged to find a new tenant to replace him. Therefore, in case there is no amicable settlement with the Real Estate Office, you have the right to file a complaint about the Dubai Rental Committee. In this regard.
Evening Work Permit
Question 3: Questioner from Dubai asks: I work in the government sector in the morning only, I need to improve my financial situation; currently I found an employment opportunity in a private company to work in the evening. The company in which I am going to work with is asking me to obtain the approval from Ministry of Labour. They are saying I have to work with them legally only. My question here is; is it possible for the Ministry of Labour to provide me with a work permit approval to work in the evening although I’m working in the government sector? If work permit is possible, what would be the procedure and the requirement in the labour office and what is the duration for the work permit?
Please advise me in this regards, many thanks.
Answer 3: I would like to clarify to you that you shall first apply for your current employment entity for the approval for the temporary work permit with another company then to apply for the Ministry of Labour for the temporary work permit provided that the approval of the questioner’s government authority shall be attached to such application. In case of Ministry of Labour’s approval, it will be for six months only and questioner can apply for a new application if so required at the time of the expiry for another six months.
Readers’ questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
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