UAE Labour Law concerning switching of Jobs

It is a common practice for workers/employees to switch jobs in the UAE. It is human nature that people always try for the best. The modern-day workforce is more dynamic and educated, therefore they are more ambitious as well. If you compare them with the past, then you will come to know that modern day employees switch the jobs quicker than employees two to three decades ago. The employees have more options and thus, everyone strives for better work opportunities and career growth. If employees are not breaching the professional contract, then employers cannot stop them. Few years ago, there was one employment type “Limited Employment Contract”, that used to bound employees to work for the entire contract. Such contracts are no longer part of UAE Labour Law. The UAE labour law governs the responsibilities and roles of employers and employees. They are taken into consideration to ensure a smooth job transition. Otherwise, it could lead to legal and financial pitfalls. UAE labour ministry ensures that, there should be no dispute between employers and employees.

The Federal Decree-Law No. 33 of 2021 administers the relationship between the worker and the employer. It provides clarity to them during the phase.  It is essential for both parties to fully understand their rights and responsibilities.

Whether an individuals resign from a current job, the UAE labor law must be followed. The employers should manage the contract termination according to the rules and regulations. As per UAE Labour Law, Employer and employee also has to respect the notice periods and legal restrictions.

According to the UAE labor law, a notice period stipulates a term of 30 to 90 days. It mainly depends on the employment agreement. The worker has to serve the full notice period or to compensate the employer with salary. But if employer wants to choose a worker to serve notice period, then, it will be preferred. However, if agreed otherwise, it can be altered. Failure to comply with the notice period, can result in legal implications. The employee can require compensation equivalent to the notice period. Additionally, the employer can terminate an employment contract should providing the legal notice or pay in lieu. It is applicable to both limited and unlimited contracts. For example, if an employee is on probation, they should serve a minimum of 14 days’ notice before resigning.

Employer also has to observe the due procedure. They must submit a valid reason for the termination. It is necessary to avoid legal claims for unfair dismissal or wrongful termination. Errors, mistakes, or misinterpretation can result in legal disputes to arise. If situation is critical, then professional lawyers, should be consulted.

In many industries, the non-compete clause is added to the employment contract. This clause restricts the employees from working within the same industry or with the competition for a certain timeframe or geographical area. According to Article 10 of the UAE Labor Law, these clauses are enforceable. They must be reasonable in scope.

However, in some cases, they are not upheld by the UAE courts. In case an employee is terminated without reason or solid cause, the restriction is overly broad. In addition, the non-compete clause cannot limit a person’s right to work permanently.

End-of-Service Benefits before stitching the job:

After the acceptance of termination or resignation, the employer should process of end-of-service benefits. The timeframe is 14 days for processing. This includes the following:

• Gratuity
• Unpaid salaries
• Unused leave balances
• Any other unpaid dues

The gratuity is usually calculated on the basis of the employee’s last basic salary and years of service served. Additionally, any delay or error in the settlement can lead to legal complications. The employee has the full right to launch a complaint in this case. In case they do not receive the dues on time, a complaint is filed. It is submitted through the Ministry of Human Resources and Emiratization (MOHRE).

Switching jobs apparently seems to be easier, but it is more than ending a contract. It directly impacts the residency visa and labor permits in the UAE.

In addition, the new employer should initiate the work permit transfer after receiving the employee’s signed offer appointment letter. No objective certificate is also needed.

Additionally, the labor ban can also be imposed in a few cases. For instance, if the resignation is not in line with the law, the ban is imposed. However, there are exceptions that are applicable to highly trained professionals in the UAE. In special scenarios, the labor ban can be waived.

All the employees must handle the transition with due diligence, caution, and professionalism. They should be legally aware of their rights and responsibilities.

They must ensure that the resignation is in written form and also serve the notice period. Furthermore, the employee must complete all exit formalities to avoid legal consequences.

One should avoid joining a new company while still being legally bound to the current employer.  All employees who want or switch jobs must return any company property, assets, and settle dues before officially leaving.

They should obtain the experience letter or clearance certificates before exiting.  These documents are not compulsory as per the UAE labor law, but can still be requested by the new employer.

To avoid the post-exit issues or visa complications, workers should consult the learned Dubai attorneys. They are capable of guiding pre-resignation review.

The probation period is a sensitive stage. According to Article 9 of Federal Decree-Law No. 33 of 2021, an employer has right to replace one employee or more, on probation period, not more than 6 months. Let’s find out further details:

• If employee resigns during probation, to join another employer, he has to serve one month notice period.
• If employee resigns during probation, to leave UAE, he has to serve 14 days’ notice period.
• If the employer terminates the contract during probation, 14 days’ notice is required.
• Failure to comply, can result in compensations or penalties.

Highly skilled professionals defined by MOHRE are often exempt from bans. For example, scientists, doctors, engineers, artists etc.

Ministry of Human Resources and Emiratisation plays an important to remove and settle the employment disputes. If there is a breach of contract then either party can lodge the complaint.

Always prefer written communication and maintain good relations with your employer. Serve notice periods and obey contractual obligations. Coordinate with employer for visa cancellation.

If you are planning to switch your job then, our labour and employment lawyers in Dubai can guide you and provide complete legal assistance. Book your consultation today.