Correct steps for Sharjah employee who resigned anxious to return home

Any employee has the right to resign at any time, usually with giving notice of a minimum of 30 days. But if someone is on a limited contract and breaks the terms early, there are penalties to pay.

I am from India and currently work in Sharjah in a professional role for a group of companies. I have been with the firm for 18 months and my working contract type is limited for two years. I have submitted my resignation as due to personal reasons I want leave and return to my home country. The company has not replied and does not seem to know the proper steps. What must happen and when can I leave? RT, Sharjah

Any employee has the right to resign at any time, usually giving notice of a minimum of 30 days. But if someone is on a limited contract and breaks the terms early, there are penalties to pay. In accordance with Article 116 of UAE Labour Law, “If the contract has been terminated on part of the employee ... the employee becomes liable for compensating the employer against losses incurred by him in consequence of contract termination, provided that the amount of compensation, may not exceed half a month’s pay for a period of three months or for the remaining period of contract whichever is shorter, unless the terms of the contract provide otherwise”. This is equivalent to approximately 45 days’ pay. In addition, Article 138 states: “If an employee under a contract with limited period leaves his work at his own option before the end of the contract period he shall not be entitled to end of service gratuity unless the period of his continuous service exceeds five years”. The employer is responsible for cancelling the visa at the end of the notice period and then depending on circumstances RT may be required to leave the country immediately. On the last day of employment, all monies due should be paid in full from both parties. The cost of cancelling visas must be borne by the employer and it is important that this is done properly so that RT has no issues returning to the UAE at a later date. Although 30 days’ notice is required, the employer may waive this provided the employee is paid in lieu, even if, as in this case, the salary payable may be used to offset the penalty for terminating a fixed contract.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at [e-mail] Follow her on Twitter at @FinancialUAE

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