Saturday, 26 April 2014

Resignation under Limited Contract


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Resignation from a UAE job is a matter discussed mostly by the expatriates. The following section provides clarifications on the matters that will affect an individual who has given resignation under limited contract.
UAE Visa - Resignation under Limited Contract

Question: My limited contract expires in this month. Can I give resignation now?

Answer: Yes, you can now submit your resignation from the job.

Question: I am working in a private company in Dubai for last four years. Do I need a  NOC (no-objection certificate) from this company to join another company?

Answer: As per the rules of Ministry of Labour; a no-objection certificate is not required for work permit in the new company. Since the employee has completed more than two years in service, he can join another company with out any labour ban.

Question: Is it mandatory for the person to serve notice period after giving resignation letter?

Answer: The employee is not necessary to serve a notice period because the employment contract is a limited one.

Question: The offer letter stated that my gross salary will be Dh12,000, plus accommodation provided by the company. But the labour contract from the Ministry of Labour signed by me and sponsor shows salary as Dh8,000 plus accommodation. Will there any problem with this at the time of final settlement after resignation under limited contract?

Answer: There will not be any problem with this. The final settlemet should be made as per the last salary drawn by you. You can prove this in court or labour ministry that you were paid a salary more than that mentioned in the employment contract.

You can submit bank statements and pay slip copy (if you receive any) as proof of higher salary.

Question: I started working at a UAE company in Feb-2010 on a visit visa and company residence visa was stamped only in Mar-2010. What is the period for which my gratuity amount will be calculated? Is it from the day I started working or from the day my visa is stamped by the company and signing of the labour contract.

Answer: The working period will be calculated by the court or labour ministry starting from the first day the worker has joined the company. Gratuity is calculated based on the last gross salary received by the worker instead of the salary mentioned in the employment contract.  End-of-service gratuity is calculated on the basis of 21 days for each year of service for persons who have completed more than 3 years in a company. Resigning from the job after the completion of a limited  contract is not a violation as per the labour law.

Question: I am working under a limited period employment contract for 3 years and I have asked my company not to renew the same. Then who should pay the costs of my return ticket to home country?

Answer: As per the ARTICLE (131) of UAE Labour Law: The expenses incurred for repatriation of an employee to his home country or any other place agreed upon by both parties shall be borne by the employer. If the employer failed to do so, then the  competent authorities should do this at the employer’s expense by way of attachment.

If the cause for termination of contract is due to the employee reasons like fraud,cheating the company, etc then his repatriation must be arranged at his own expense if he has the mean to pay.

If you have completed your limited period contract and don’t want to renew the same  then the employer is obliged to pay your return tickets.


Saturday, 19 April 2014

Labour card for Partners in a business


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A partner in a business establishment is not considered an employee. Therefore the partner of a business is not required to obtain a labour card from the UAE Ministry of Labour and Social Affairs. For immigration and visa purposes, a foreign partner of a business organization will be sponsored by the entity he is a partner in, as an investor instead of an employee of the company and he will deal directly with the immigration authorities and does not need to go through the Labour Office.
Partner Visa - UAE Business Setup
For this purpose his name should be on the business entity’s trade licence and subject to a minimum investment requirement in the company. However, if the business partner holds an employee position additional to his partner status, he will be treated as an employee for the job he is performing in the company. In other words, employees working on a commission basis are also considered as employees even if they are business partners in the company they are working.

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