Monday, 18 February 2013

Labour Ban and Contracts


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.


Smile said...

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."

zainulth said...

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.

Gillian Garcia said...

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?

zainulth said...

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.

alexa said...

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.

mansoor alam said...

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

seema giri said...

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

6c2b9756-df66-11e2-87a2-000f20980440 said...

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.

Mekaela Venzon said...

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 Venzon said...

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.

keralaclubs said...

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.

Warren Austria said...

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.

Zainul Abideen said...

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

aayesha shaikh said...

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.

Zainul Abideen said...

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.

jabi said...

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.

Zainul th said...

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.

Rizwan Shah said...

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 ?

Rave Jay said...

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.

Jhojho said...

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?

musa said...

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

faisal khang said...

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,

Hassan Shahzad said...

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.

Daniel Mehta said...

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!

Saumi Dil said...

I am working in a Garment LLC with dubai 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

Mohammad Shadab said...

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

afsu said...

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?

Zainul th said...

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.

claire aniag said...

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

Lyubov Rina said...

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?

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