A fixed-term contract can be terminated for the following reasons: A foreign employee whose work card has been cancelled can only be kept with the employer if a new work permit is obtained, according to a circular from the Ministry of Labour and Social Affairs. “If a sponsor cancels an employee`s work card but later decides to let the employee stay in the UAE, he (the sponsor) must apply for a new work permit,” reads the circular signed by Dr. Khalid Al Khazraji, the ministry`s undersecretary of state. This decision was motivated by the fact that some employers cancelled their employees` work cards and later reached an agreement with the employees to return to work and abandon other cancellation procedures, thus maintaining the valid residence visa. Since the employment relationship has ended and employees have received their contributions and signed a waiver, employers must reinstate them if they decide to keep them, the circular says. If an employer decides to reinstate an employee whose work card has been cancelled, this must be done within 30 days of the cancellation date. The employer must also submit a corresponding letter to the admissions department or employment office. The letter must be accompanied by an application for a new work card accompanied by all the necessary documents, including a new employment contract. The Ministry of Work Cards issues a new card for the same profession, based on the visa stamped in the employee`s passport, according to the circular that came into effect immediately. Dr.
Al Khazraji said the labor market needs to be reorganized, stressing that recent ministerial decisions are aimed at this goal. He said the ministry wanted to improve the performance of the departments in charge of labour inspection and industrial relations so that “new developments” in the field of labour could be managed. He stressed that the ministry alone is not able to control the labor market, but requires the cooperation of the relevant authorities. Sources said the ministry has decided to severely punish companies that flout labor rules and the employment of expatriates. The ministry has already issued several decisions aimed at restricting the illegal activities of certain companies that flood the market with undesirable employees. “If a company does not take the necessary procedures to terminate the work permit after the end of the employment relationship between it and the company, the company`s activities will be suspended until the violation is resolved.” If a company does not renew its employees` expired cards, its operations will be suspended immediately after the expiry of the renewal grace period. Again, he will not be able to start doing business until three months after the violation is eliminated. The sources added: “Companies that do not pay their fines will be suspended and can only be taken back six months after the correction of the infringement. Businesses that do not regularly pay their employees will be shut down and the license will be revoked if the violation is repeated. In accordance with Article 117 of the United Arab Emirates Labour Code, a contract of indefinite duration may be terminated at any time by the employer or employee for a valid reason, provided that the conditions for notice are met by the dismissing party. A “just cause” for terminating a contract of indefinite duration should be any “work-related” reason. Work-related reasons may include poor job performance, disciplinary violations or misconduct on the part of the employee, or other reasons.
Although employment contracts of indefinite duration are to be replaced by fixed-term employment contracts, the new Labour Law provides for rather unusual minimum notice periods for the termination of contracts of indefinite duration, depending on the seniority of the employee, depending on the seniority of the employee: (i) 30 days if the seniority of the employee is less than five years; (ii) 60 days if the worker`s period of service exceeds five years; and (iii) 90 days if the period of service is longer than 10 years. An employee is not entitled to severance pay if he resigns with less than 5 years of service. If he has more than 5 years of service, he is entitled to the same bonus at the end of the service as if he had terminated by a contract of indefinite duration (see answer to question 16 below). An employment contract, whether for a fixed term or an indefinite period, may be terminated by both parties without notice in accordance with the Uae Labour Code. In the case of contracts of indefinite duration, an employment relationship is terminated in one of the following cases: Under the United Arab Emirates Labour Code No. 8 of 1980 (as amended) (the “UAE Labour Code”), which applies to all employers in the United Arab Emirates (except those based at the Dubai International Financial Centre (“DIFC”), there are two types of employment contracts, employers can issue programs to employees; fixed-term or open-ended contracts. Termination of employment contract without notice by employer An employee may terminate an employment contract without notice if: An employee is not entitled to a bonus for terminating service unless he has been employed continuously for more than 5 years. In these circumstances, the end of service is calculated as if the employee had terminated the employment relationship under a contract of indefinite duration. According to the Water Labor Code, a fixed-term employment contract must stipulate at least the following: A contract of indefinite duration is of indefinite duration and can be terminated for various reasons under the UAE Labor Code (see the answer to questions 13 and 14 below).
According to Federal Law No. 8 of 1980 on the Industrial Relations Regulations and its amendments (“United Arab Emirates Labour Law”), employment contracts can be two types of “fixed-term contracts” and “contracts of indefinite duration”. As the name suggests, fixed-term contracts are set for a certain duration, while contracts of indefinite duration are of indefinite duration and do not specify a duration. An employee can terminate his employment contract by terminating the employer in accordance with his contract (minimum 30 days and maximum 3 months). A fixed-term contract may not exceed two years and must indicate the period of notice from at least one month to a maximum of three months. In addition to the reason set out in Article 113 of the UAE Labour Code, as stated above, an employee may legally terminate a fixed-term employment contract if: Employees may be paid in currencies other than UAE dirhams if this is agreed in the employment contract, although it remains to be seen how this would work in practice for employers who have to pay their employees through the wage protection system. All workers must be employed on fixed-term contracts which do not exceed three years and may be extended for the same period. Employers will have 12 months starting February 2, 2022 to transition all their employees to new contracts.
Each party may terminate the original contract or a contract renewed individually, provided that it fulfills the legal consequences of early termination, including: There are various differences between the two types of contract, including the treatment of the legal right to object to the termination of the service and the consequences of termination. Under the UAE Labour Code, an employee is entitled to an “early termination indemnity” of at least three months` compensation, including salary and compensation (or the rest of the contract term if the remaining period is less than three months) if an employer wishes to terminate the contract before the end of the fixed term. . . .