Labour Ban and Contracts in UAE

Labour Ban and Contracts in UAE

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?
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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 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.