Monday, 18 February 2013

Labour Ban and Contracts

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This article is provide information regarding labour ban for a UAE work visa holder who had completed two years or more than two years with the current organisation and planning to resign and join another employer. The following questions will be answered in this article.
  • Will there be any employment ban?
  • Eligibility for gratuity
  • Air ticket provision from the current organisation?
  • Serving the notice period
  • Whom should you contact if the current employer refuses to cancel the visa?
Article 117 (1) of the UAE Federal Law No 8 of 1980 states: “Both the employer and the worker may terminate a contract of employment of unlimited duration for a valid reason at any time following its conclusion by giving the other party notice in writing at least 30 days before the termination.”
As per the new information, currently the Ministry of Labour does not impose employment ban on the employee if the employee has completed one year of continuous work with its current employer. Since anyone who have completed continuous job for over one year with your current employer will not get any employment ban. This is applicable in case if you wish to resign from your current employment.

UAE ministry of labour

UAE Gratuity Calculation

Also, if you are working on an unlimited employment work visa contract and have completed more than one year but less than three years of employment. Then you will be entitled to receive one-third gratuity in accordance with the provisions of Article 137 of the UAE Federal Law No. 8 of 1980 which states that: “A worker who is bound by a contract of unlimited duration resigns after continuous service of not less than one year and not more than three years shall be entitled to one-third of the normal gratuity.”

Air Ticket provision

In this case, the worker is resigning from the job and so in accordance with Article 131 of the UAE Federal Law No. 8 of 1980 the employee shall bear the cost of air travel to their home country. However, if the labour contract between the employer and the employee states that the employer to pay such cost, then the cost of return ticket for the employee to his/her home country shall be borne by the company.

Notice period serving when resigned

Article 117 of UAE Federal Law No. 8 of 1980 states a notice period of 30 days is to be given, by either the employer or the employee depending on which party need to terminate the contract. In this case the employee must serve the 30 days notice period.

The worker may approach the Ministry of Labour in case the employer refuses to cancel your visa.

56 comments:

  1. Article 117 - Does the law apply to both limited and unlimited contract re: "currently the Ministry of Labour does not impose employment ban on the employee if the employee has completed one year of continuous work with its current employer. Since anyone who have completed continuous job for over one year with your current employer will not get any employment ban."

    ReplyDelete
    Replies
    1. acording to my knowledge you must to complete 2 years otherwise the labor will impose the ban..automatically..even your employer dont want to give you ban....this is a labor rule...

      Delete
  2. Article 117 of the uae labour law is applied to contracts with unlimited period only. If you have a limited labour contract the imposing of labour ban is at the discretion of your employer.

    ReplyDelete
  3. i am currently employed as a waiter in a chinese restaurant here in dubai, stated to my passport that my visa is valid for 2 years, but since the time i joined the company up to present, i haven't signed any written contract. would it be consider as limited contract? can i resign any time since i didn't sign any contract. or am i entitled for employment ban as well?

    ReplyDelete
  4. Since your profession is stated as waiter in your residence stamping then you will definitely have a work permit card. You will not get a work permit card without signing a labour contract. You may have signed this when you joined in the restaurant before the stamping of residence visa.

    ReplyDelete
  5. Hi Sir! I'm working since July 2012 in a private company. I am hired as an Administrator for a Restaurant and was promised to receive the same benefits with the other staff/waitress/waiters (such as free meal (written in my contract), uniform and tips (not written). But on my visa my job is waitress. At first they say, there will be no problem with that. My situation now is complicated since I am not only working for the said restaurant but also to other company that my boss owns. And also every month I am paying DEWA bill even though it stated in the contract that accomodation is shouldered by the employer. (There has been an issue before with the DEWA, because they deduct it straight from our monthly salary, but since one staff file complaint it at MOL, they reimbursed what we paid but as of this moment we're still paying it by cash)Now, I want to ask if I can resigned? Will there be a ban for me? My contract is unlimited. Will there be a payment if I resigned? My offer letter states that I have 2 year contract with them but in my contract here in MOL there is no date of end contract since it is unlimited? I hope you can response in my inquiry. Thank you.

    ReplyDelete
  6. i was working in a company as a sales since 2 months, but my employer not giving salary as per commitment and they forced me sign labor contract 1000 AED, i m not signed i summit a resign and they are agree to release me and i signed form cancel visa form but they not giving me resign accept letter, so what i do against because they are canceling my visa in negative manner, please suggest me

    ReplyDelete
  7. i worked 7 month n uae than company terminate me.iam afraid that i will have banned .so i made new passport is it possible to get inside in uae if i have banned but with new passport a new MRP

    ReplyDelete
    Replies
    1. even if you change your passport, if you undergone for eye scanning they will still see your previous record.

      Delete
  8. Hi,
    I have been offered a job for a Manager role, here are the conditions

    1. Unlimited contract
    2. Company is Headquartered in Ras AL Khor, which i believe is a FTZ
    3. My notice period is 2 months

    I have accepted the offer, but havent submitted my passport for visa processing (as i have submitted it to cancel my current student residence visa)
    I am expecting a role and salary which is better than the current one however, it might take a little long for confirmation with Ramadan around the corner.

    I have the following questions:

    1. Would it make sense to wait for the better offer? (this company does not seem very professional, my offer letter came in a mail and there was no salary negotiation, they just gave me the offer, though the pay is fair enough)

    2. Can I leave the company during my probation period? (I am currently doing my MBA and will graduate in August, so practically I am getting employed before graduating)

    What are your suggestion.

    Thank you very much for taking the time to reply.


    ReplyDelete
    Replies
    1. Hi there!

      I suggest you better look for other opportunities because as you have mentioned that they haven't provided you any legal papers etc.

      Secondly, it's actually case to case basis. Let me know further your status visa.

      Thank you.

      Best regards,
      Mekaela

      Delete
    2. For futher queries or clarifications, you may consult the labor office which is located near the Jafliya metro station. They are the best person to speak about your employment status, visa problems etc.

      Delete
  9. I worked for for more than 2 years in a private company and now I submitted my resignation letter. I now have an offer for a government job. My question is that whether I may get six month ban upon the cancellation of visa by the company and will it effect in joining my new work for the government department. Please advise in this regard.

    ReplyDelete
  10. I have concerns regarding contract issues. My employer issued me a employment visa at Sept 2 , 2013 and I'm wondering why until now he's not yet providing me a written contract to sign on. I'm not sure if I'm on limited or unlimited contract. All I can remember that I done were having medical exam and doing biometric scanning for emirates I.D. What will I do about this. I want to know my rights as an employee.

    ReplyDelete
  11. The employment contract need to be signed before stamping the visa. It is a requirement as per the UAE labour law.

    ReplyDelete
  12. i want to know if a company is making a contract and offer letter
    where he is maintaining that
    (after the termination of contract with us, you are not allowed to work directly or indirectly with our competitors or partner or advisor or in any capacity at least for two years in UAE)
    so i cant work with my profession in any other company if they remove me before completing 2 years.
    please tell me.

    ReplyDelete
  13. I as per my information it is against the labour law in UAE. You can contact with Ministry of Labour and confirm the same. Call centre number is 800 665.

    ReplyDelete
  14. Hai,
    I am on visit and I got an offer in Dubai . I have signed a contract (6-7 pages ,in English) and I have submitted passport copy for visa processing. They had told me it will take 2 week to get visa,but now it is more than 1 month and it goes uncertain. Now I have another new offer from another co .Pls advise me what I have to do to go for the new offer.

    ReplyDelete
  15. If the other company has already applied for a work visa then the new company will not be able to process your visa. Check with the old company and if they haven't already applied for visa then cancel the contract and accept the new offer.

    ReplyDelete
  16. I have got today my employment e-visa of Dubai but, there is not mention about the tenure of the visa,,, Can anyone tell me the time period of an employment visa...??
    And also explain me about a simple visa and an electronic visa differences ?

    ReplyDelete
  17. I got a agreement from a company and I signed it and mail it but still i did not get any visa or any papers regarding the visa.If i ask them to stop the visa process can they put a labour ban on me.

    ReplyDelete
  18. I was working in my company for almost 10 months now. My Labour Contract haven't come to the office as well as Labour Card but it appears on MOL online website. My next problem is until now my residence visa was not stamped to my Passport due to some Issues and problems Occur within the range of 10 months.

    Can Someone Advise me what will happen to me. Or is the necessary thing I need to do?

    ReplyDelete
  19. What is notice period required if one is resigning from a limited contract? employee needs to pay salary or visa charges?

    ReplyDelete
  20. muhammad faisal

    Hi there!

    I suggest you better look for other opportunities because as you have mentioned that they haven't provided you any legal papers etc.

    Secondly, it's actually case to case basis. Let me know further your status visa.

    Thank you.

    Best regards,

    ReplyDelete
  21. I came here in UAE on Tourist visa and get a Job and after arrival on Employment visa i did not sign the contract letter and company cancel my visa on 6-oct-2013.
    Now i came again in UAE on Tourist visa and got a Job offer but i did not tell them about my last resignation. Can i face the labor Ban?
    Note: Visa was not stamped on my passport when i get the first job.
    Please Suggest what to do now if i have a 6 Month ban. I am Graduate Electrical Engineer having documents attested from UAE Embassy of my home country.

    ReplyDelete
  22. I am currently working for a restaurant on a limited contract of 2 years with a salary of Aed 2500, my labor card expires on 27th February 2014 and my visa on 21st March 2014. The Current company i work for is pleased with my work and wants me to extend my contract with them. But i am not happy in this company and i am getting a better job offer in another restaurant which pays Aed 5000 basic salary and many allowances they will also provide for my visa once my cancellation documents are given to them by me, the responsibility is more of course, but i am willing to take it. after i told my employers about this situation they were angry with me and have threatened to impose a ban on me if i join the other restaurant claiming that there is a general "Non Compete Clause" in UAE even if it was not mentioned in my labor contract. My question is can my employer ban me even if i have completed my contract with him? what can i do to avoid this ban as i am the only earning member of my family and have a lot of responsibilities on my head. Also can you please guide me on how to proceed to not disappoint the new company and get visa from them on time? i have given them a joining date of 22nd March 2014. what can i do? Please help!

    ReplyDelete
  23. I am working in a Garment LLC with dubai visa.my visa will expired on 04/04/2014. If I will resign before that day I will have a ban or not?
    And my company is dedicated 50.00AED from every month of my salary for savings. Is that legal?
    And two month before tbey took our salary card (ATM) with our pin number.They show to ministry of labour to our salary and after that witdrow.becouse every month we are getting our presnt month salary after one month only?
    Please advise sir

    ReplyDelete
  24. dear Mekaela Venzon

    i cam to dubai on tourist visa. I was given a offer latter and i came to exit.

    the company send me the employee visa. but unfortunately i was not able to go as per the company therefore they cancelled my visa. As i was in inida visa was not stamped on my passport.

    My question is can i go again to duabi on tourist visa and look for the job.

    is there a ban on me as my visa was cancelled.

    thank you

    ReplyDelete
  25. hi, i have an emergency to go, and 2 weeks before i mailed my resign letter to my boss with a notice period of 1 week. but still now he didnt gave me cancellation. what should i do?

    ReplyDelete
  26. As per my information normal notice period is 1 month as per UAE labour law and your sponsor has the right to cancel the visa only after the specified notice period in the contract. Try to have a good conversation with your boss to cancel the visa.

    ReplyDelete
  27. My labour card will expire at march 28 2014 and onnmy passport is april 28 2014. It's possible to have six month ban?

    ReplyDelete
  28. Is it in the labor law in uae that if the private employee has found guilty the ministry of labor has the right to terminate the private employee?

    ReplyDelete
  29. im on an mission visa but another company has offered me a job and a residency visa will they be able to apply for a residency visa will im still on my mission even though the contract that has been made from the company that has given me a mission visa is finished!

    ReplyDelete
  30. hi
    my father in law is working as maintenance technician he resigned before but the same company took him again.all is done. the company told him that he will pay the visa and the medical expenses. is this legal?

    ReplyDelete
  31. I was a 6g welder hired by the company name INTERNATIONAL MODULAR BUILDING,this company supplying a manpower to LAMPRELL ENERGY LIMITED as their client,but after two months of staying in this company,they terminated our employment contract due to the reason that we failed to pass the qualification testing that conducted by LAMPRELL...and we know that they have the rights to terminate our employment contract because we are in probationary period,but the worst thing happen is we do not received our 1 month and two weeks of salary,the company said that we are only a trainee and they have the right to give a trainee allowance to us as per uae law,is this right?is there a trainee allowance law in uae?pls i need of help does anyone who can tell me my rights as refer to uae labour code...until the time that they send us home not receiving our last salary,we try to complain to ministry of labor in sharjah and file a case to my company,as we are trying to get into the sharjah court we are not entertain because we need to buy a token worth 50 dirhams per head and one of the officer said that " dont u see that im busy and u want to ask something on me go back there and get token"...we go home hopeless and decided not to continue pushing it...we dont have any money our company cancelled our visa without giving anything to us...

    ReplyDelete
    Replies
    1. There is a vocational training contract specified in UAE Labour Law as per Article 42. To be applicable for this you should have signed this contract. Check your contract to see for the kind of employment you have entered with your company. If you are under a training contract then you should get enough time for the training and education and must be employed by the company for a minimum period of twice times specified in the agreement. Check with the labour department for clarifications.

      Delete
  32. hello. im working with company of concrete and projects since one month, with unlimited contract and 6 month probation period, but I wont to change job, so my question is if I resign after two month of work I well get a ban or something ????

    ReplyDelete
  33. Can I get a copy of cancelation of visa in ministry of labour? In case my previous company can't give it to me in time? Bcoz I need it urgent in my new company. Help me pls..

    ReplyDelete
  34. hi im working in Dubai and when I go home to my country I did not come back to Dubai...I did not finish my contract....do I have a ban?

    ReplyDelete
  35. Hi, I am working for a restaurant as waiter past 1year 6 months. I would like know if I gave resignation there will be 6 months ban on my visa.

    ReplyDelete
    Replies
    1. Hi Raghav,

      You will get a labour ban since you haven't completed two years in job.

      Delete
  36. Death SIDHI
    I amb newly joint in hospital office staff my visa already stamped.I have a good offer in other company if I amb resign I will get ban

    ReplyDelete
  37. I have been working in a company in abu dhabi for the past 5 years and just has my visa renewed. If I want to transfer to another company for how long should I have to wait before I could resign. I asked about this due to the fact that my visa had just been renewed. (March 2014) What article or section in the labour law is this stated.

    ReplyDelete
    Replies
    1. You can resign from the job giving one month notice period to your company. Article 113 to Article 131 of UAE Labour Law states this in detail.

      Delete
  38. My friend work at his company since 2009 to present and now he want to quit as he got a good offer with other company he doesnt have any degree and the offer is double his salary,but as stated on his contract with this company that he cant work for six months on the same field of job once he resigns. Does he still get the labor ban?Even though he completed almost 5 years in service.Is there will be a possible way to lift his labor ban?

    ReplyDelete
    Replies
    1. There will be no labour ban since your friends has competed more than two years in the job. There is no clause like that you cannot work in the same field.

      Delete
  39. i have a limited contract and this is my first time to work here in abu dhabi. i just want to know if i will resign after 1year in my company, what will happen? should i pay back and have a ban?because my family wants me to get back to my country to study again .

    ReplyDelete
  40. Hi sir right now I work for a company which is not afree zone for 2months now,, but I get an offer from agree zone company and already submitted my passport copy to process. But my Question is will I meet aban?

    ReplyDelete
  41. Hi I m working in a company since 9th march , my visa is still not yet stamped on my passport , HR dept. Says that they hve to get signed some papers by owener for stamping and he is travelling other countries so its taking time, I want to know that as already 2 months have passed is my visa is still valid , is there any validity period of stamping? I hve got my Labour card, n have submitted my application for emirates id n medical is done already , please guide me what might be the possible consequences?

    ReplyDelete
  42. Hi sir i had worked for four months in a coametics brand in Dubai. They cancelled my employment visa last january 2014 due to i got problem with my medical for some health reason. So i went back to my country last January but before that my employer said that i can go back anytime soon to Dubai. After 1month my husband tried to apply me Visit visa, but my application was rejected because it appears that i was issued a Lifetime ban by the Labour. We called the immigration what we will do so i can enter again Dubai? And the Immigration said that there is still a possible that i can enter Dubai just i need a medical certificate that will certify that i am physically fit to work and free from any illnesses, i already have all there needed authenticated by the UAE Embassy already. I just want to ask what would be my next step? I really want to go back to Dubai and get my job back. Because my employer said that i am always welcome in their company once i ge back to dubai.the problem is i cannot apply Visit visa by my husband there because of my ban.

    ReplyDelete
  43. hi! is there a difference between terminated and resigned? in terms of the money they can get from the company? Is terminated can get higher amount than resigned one?

    ReplyDelete
  44. hi, my friend has labour category visa, it issued jan 2013 and will be expired in jan 2015. he want to quit his job. he want to leave his company but not in presently. he wants to go back his country without cancelling visa.
    could u plz giude us that if he will not in UAE at the time of expiry visa. Should any labour ban will impose on him??. Thanks

    ReplyDelete
  45. in regards to air ticket provision: as stated to my contract my current employer will pay for my ticket after completion of 2years and every year thereafter.. since my visa will expire on Feb. 10, 2015 and my labor card on Dec. 21 of this year to be exact on my 2nd year... what will happen to the agreed air ticket just incase i do not want to renew my labor card, my visa, and i do not want to extend my contract to them as well because i am now finding for a new company? what do i need to tell them for my rights as for my completed 2 years of working with them?

    ReplyDelete
  46. hi sir, just wanna ask if you're just new in the company a freezone company for like 2months, and you got terminated, the company wants to send you home immediately in your home country, is there any chance not to use the ticket going back home? going to another place instead like kish? what will happen? please help

    ReplyDelete
  47. Dear Sir,
    i have completed 1year 6month my visa is sales representative my background bachelor of electrical engineer, i have one offered electrical engineer 5000aed salary. can i join the company? any ban apply my current company? please reply me.. thank you

    ReplyDelete
  48. Hi. Im working as a nanny for almost months but until now i didn't sign any contract. But i want to go home. Can i go back to the philippines? What i should do? Do i need to pay to my employer? Please help me.

    ReplyDelete

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