Question: I have been in the UAE for five months and started working in December 2023. Now, I want to resign from my job. Can I leave at anytime or do I have to give them one month's notice? I am still in my probation period, which is six months.
Will they pay me if I say I am leaving? We get paid late every month, sometimes by three or four weeks, and I am worried they will just decide not to give me my pay. RN, Sharjah
Answer: I understand that RN wants to stay in the UAE and take on another job. This makes a difference according to the rules that apply under Federal Decree Law No 33 of 2021, known as the UAE labour law.
“If the worker wishes to move during the probationary period to work for another employer in the state, he shall notify the original employer of the same in writing within not less than one month from the date of his wish to terminate the contract,” Article 9 of the law states.
Watch: New UAE labour laws come into effect
“Then, the new employer shall compensate the original employer for the costs of recruitment or contracting with the worker, unless otherwise agreed upon,” it adds.
This means that RN should provide the employer with formal notice to leave the company.
The notice period is part of an employment contract and RN should be paid in full for the month.
The law also makes reference to salaries being paid on time. Article 22, which defines the amount or type of wage and its payment, is clear.
“The employer shall pay the salaries or wages to its workers on their due dates in accordance with the regulations approved in the ministry,” it states.
Salaries should be paid when they are due – not when the employer wants to pay them.
If an employee resigns, they should be paid in full at the time of leaving service.
In 2022, there were amendments to the Wages Protection System, which is designed to protect the salaries of UAE employees.
The system should pick up on any late salary payments and if a company is late in paying staff, the Ministry of Human Resources and Emiratisation will stop granting it any additional work permits starting from the 16th day of delay.
The employer will be monitored and can be fined, especially if there are significant delays.
If an employer fails to pay salaries that are due, either ongoing or if a staff member leaves employment, a case can be registered against the company with the ministry. The ministry will now be handling nearly all smaller cases itself, rather than it having to go to court, which takes more time.
Q: If an employer terminates an employee and does not request that they serve out the notice period by working, what is the official end date of employment for documentation?
Is it the date when the notice period started or the date when the notice period ended? MT, Abu Dhabi
A: In this situation, even if someone is not required to actually work during the notice period, it is still part of the period of employment.
From the date of redundancy or termination, there will be an additional 30 days of official employment, unless the contract has a longer notice period.
The official end date is the last day of the period of notice and the visa and work permit must remain valid until that date.
If the employee is asked to stay at home, it is often referred to as “gardening leave”.
During this notice period, the end-of-service gratuity continues to accrue, as does annual leave, and medical insurance and all other benefits must remain in place.
The person remains an employee during this period and should not be working elsewhere.
It is possible to end the employment sooner, provided that both parties agree to this, and that the employee is paid in full for the notice period – whether it is worked or not.
Q: I lent my friend some money and she has given me two postdated cheques as security. It is not a very big amount and it was for a good reason but I do want the money back.
The cheques are dated for April and May of this year but I plan to be out of the country from the end of March until sometime in August.
Can you tell me how long cheques are valid for in the UAE? HY, Dubai
A: In the UAE, a cheque is valid for a period of six months from the date it was written, known as the date of issuance. If a person tries to pay with a cheque that is dated more than six months ago, it will be rejected by the bank.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 30 years’ experience. Contact her at keren@holbornassets.comor at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only.
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Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
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MOUNTAINHEAD REVIEW
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Brief scores:
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Electric scooters: some rules to remember
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Global state-owned investor ranking by size
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United States
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China
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3.
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UAE
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4.
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
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- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Results
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First Person
Richard Flanagan
Chatto & Windus
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.