I am a doctor working in Abu Dhabi. I am on a limited contract of two years and my probation ends soon. Neither my son nor I have managed to settle here, and so I wish to return home. I have been told if I resign during the probation period I will have to pay the residence visa costs plus insurance costs. Is that true? Also, if I resign after my probation, my contract states I will have to give three months' notice. If I resign then I will be paying 45 days' salary and I want to know if this is only my basic salary. RA, Abu Dhabi
It has been made quite clear that the costs of employing staff such as visa and recruitment costs are to be paid by employers and not passed on to the employees no matter when they leave or what any paperwork may say. However, if an employee resigns before completing a fixed-term contract then they will be penalised. Article 116 of UAE Labour law states: “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 the contract, whichever is shorter, unless the terms of the contract provide otherwise.” The Labour Law only refers to “pay” but I take this to mean all regular payments as set out in the contact, so if allowances each month are paid these could be included in the amount.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with more than 20 years of experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.
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