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EMPLOYMENT RULES AND SERVICES
The relationship between employers and employees is governed by Federal Act Number 8 of 1980 and its amendments. The Act is applicable to all employment relationships when engaging an employee, whether a UAE citizen or a foreigner. It is not applicable in the case of employment by a government authority.
The approval of the Ministry of Labor is a prerequisite for the employment of foreigners. The Ministry encourages the employment of nationals in the private sector. However, an employer will be given permission to employ resident foreigners who may be transferring from previous employers or to employ newly arriving employees. A work permit is issued by the Ministry for three years, subject to renewal for similar periods. Employment contracts may be for a limited period specified in the contract or for an unlimited period, in which case the employee will continue working with his employer until the contract is terminated.
Q: I have been employed by a company for more than two years under a contract for an unlimited period. However, for more than three months, the company did not pay me my dues and I finally submitted my resignation due to the non-payment of my salaries. I then filed a complaint before the Ministry of Labour to claim my labour rights and overdue salaries. At present, the complaint is pending before the Ministry of Labour. Can I claim damages from the company? It is worth noting that I could not pay my rent on time and the real estate office of the building wants me to vacate my apartment. Furthermore, can I transfer to a new company without the consent of the employer? My employer would not provide me with a no-objection certificate (NOC) to transfer the sponsorship.
A: Resignation over non-payment of a worker’s salary is deemed to be arbitrary dismissal, according to the Cassation Court. As such, the employer shall compensate the worker a maximum of three salaries, based on the court decision.
Therefore the questioner shall ask the employer for compensation for arbitrary dismissal, along with the other labour rights and overdue salaries.
As for the question on the transfer of sponsorship, if the worker failed to get his salary for more than two months, the Ministry of Labour will transfer his sponsorship and as per the labour office rules, there is no need for an NOC certificate from the sponsor.
