In the vibrant landscape of UAE, it has several employment opportunities for expats around the globe. The UAE economy welcomes them with open hearts to come and explore the ample opportunities that the Middle East offers. However, it is essential to know the limited contract resignation in UAE and its ifs and buts before getting into this!
This article provides a detailed insight to empower yourself with knowledge for a great employment experience. You will learn everything about limited contract resignations in the United Arab
Emirates.
In this article, we shed light on to:
- Understand everything about a limited contract resignation
- Pros and cons of limited contract resignation to employees
- How a limited contract resignation is different from termination by the employer as per the new UAE labor law 2024?
Understanding Limited Contracts Resignation In UAE:
In the United Arab Emirates, the limited contract resignation UAE can be renewed after the completion period. Many employees resign before their tenure ends. It is essential to understand the UAE Labor Law. As it provides an important advantage to the employees. It ensures workers enjoy benefits that may be offered to them
This article provides a detailed insight to empower yourself with knowledge for a great employment experience. You will learn everything about limited contract resignations in the United Arab Emirates.
Difference between Limited Contract Resignation & Termination By Employer
Limited contract resignation UAE 2024 is a form of contract that sets a time for an employee to stay in the UAE on their visa. The time duration is two or three years. It is important to understand that it automatically ends on its own when the term is completed. However, if both parties agree to end it sooner or continue it longer.
On the other hand, termination by an employer occurs when the employer terminates an employee due to any reason specified in the UAE labor law. Given that, from the employer’s end, all notice periods and relevant benefits must be fulfilled.
Both scenarios are different from each other. The Notice Period for Termination by the Employer is 30 days. While Resignation by the Employee ranges from 30 to 90 days.
Limited Contract Resignation Law for Government Sector
According to the Abu Dhabi Human Resources Law No. 6 of 2016 of limited contract resignation UAE, it states that a government employee needs to take several steps at the time of resigning.
However, the articles ranging from 80-81 lay down the details of the resignation process which outlines that
- Employees are required to write a resignation letter when they finally decide to resign. The company management/administration has a month to reply in response to a resignation letter.
- Resignation approval depends on the administration. The employee will be notified in thirty days. After a month, if the employee doesn’t receive any response it means that they should keep working.
- The employee can stick around for up to two months after the resignation announcement under the government entity’s watch. On the other hand, they are expected to hand over anything they receive from this job. Also, they are entitled to receive a bonus that is equal to their full salary for that period.
Limited Contract Resignation Law for the Private Sector
As per the limited contract resignation UAE under Federal Decree No. 33 of 2021, states the following set of rules which covers both local workers and expatriate workers.
According to the UAE Labor Law:
- Employee and employer both can end a job contract. In the case of a limited job contract, your contract ends automatically after the expiration period unless you extend the time. You need to provide a resignation when it’s time to go as per the UAE law
- You need to provide a valid reason to leave the job on applying for resignation. Note that your resignation may be put on hold if you apply at a time when your employer doesn’t want you to leave. To apply for resignation, you need to notify 30 days before leaving the job.
- During the notice period, the employment agreement remains in effect. It ensures that the contractual arrangement is still active as long as the employee remains engaged in work responsibilities.
The Resignation Process:
The resignation process in the UAE involves several steps including submitting a written resignation letter to the employer to inform them timely about your decision to leave, serve the notice period as per the signed employment contract, hand the office belongings, complete your pending tasks, shift your responsibilities to your colleagues and obtain a clearance document from various departments.
Submitting a written resignation letter
It is required to write a resignation letter along with the reason for leaving
Serving the required notice period
As per the employment contract UAE, you need to serve the notice period
Completing any handover procedures
It is time to hand over office belongings. Complete the pending tasks assigned to you while passing on your responsibilities to your colleagues
Obtaining clearance documents from the employer
Obtain clearance from various departments, if necessary ask the employer to provide a clearance document
Legal Method for Resignation from Limited Contracts in the UAE
Notice Period
According to Article 43(3) of the new labor law for limited contracts in UAE, states that if there is a failure to follow the notice period then it comes under contract breach. The party involved in the breach is obligated to provide compensation which is referred to as the “notice period allowance.” This compensation exists still if the breaching party is not involved in any harm to the non-breaching party. It is noted that it’s equal to the one-month worker’s wage.
Create a Formal Resignation Letter
To create a formal resignation letter by an employee, they need to start with a Supervisor’s Name. State clearly about leaving a job by clearly mentioning your designation and role in the organization. The effective such as the last Working Day which should be two weeks from the date of the letter. At last, appreciate the organization and your colleagues working for their constant support
Serving the Notice Period
The UAE article 45 of the Labour Law provides that an employee can resign without notice under specific circumstances:
- The employee can resign if he/she fails to fulfill the conditions that are mentioned in the employment contract
- The employee has a right to resign without notice period if the employer assaults him/her.
- When an employee assigns different duties without obtaining his/her consent.
Negotiation and Early Termination
According to article 43 of the UAE labor law, outlines that any party either employer or employee can terminate the contract for any legitimate reason written on the employment contract. A notification in written form is given to the party while the terminating party will serve a notice period of 30 days to 90 days.
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Conclusion
In conclusion, this article provides you with detailed insights about limited contract resignation in UAE and termination by the employer. Keeping in mind every basic information, we tried to mention every minor detail that helps you understand the best. However, both terminologies are different from each other and offer different features to both parties.
From the employee and employer’s point of view, it is best to go for limited contract resignation by mutually agreed decision. In case of termination by the employer, the employee has to face several problems along with the job loss.
Need to learn more? Connect RAAD Recruitment today and enjoy a seamless experience of everlasting job satisfaction.
