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There are two types of courts in the UAE, ie, federal (the Emirates of Abu Dhabi, Sharjah, Fujairah, Ajman, and Umm Al Quwain) and local (the Emirates of Dubai and Ras Al Khaimah, which have retained their independent judiciaries). Both federal and local courts comply with the UAE Temporary Constitution of 1972. Both federal and local court systems are composed of three levels, ie, courts of first instance, courts of appeal, and the Federal High Court in Abu Dhabi or the Court of Cassation in the Emirate of Dubai. In the Emirate of Ras Al Khaimah, the judiciary is of two levels only, ie, courts of first instance and a court of appeal.
The Civil Procedure Act regulates the jurisdiction of the federal courts, their formation, and level in the hierarchy. The Act is applicable to all civil proceedings before the courts, ie, civil, commercial, and personal. Although the courts in the Emirate of Dubai are formed under and regulated by Act Number 3 of 1992, the Civil Procedure Act has been adopted and enforced in Dubai pursuant to Act Number 5 of 1992.
In accordance with the Labour Law if the employee, who is under a contract for unlimited period, wished to submit his resignation from work, in this case, he shall give notice to the employer on the same and shall work within such period if so required by the employer, i.e. the Labour Law obliges the employee to work within such period and the latter is not entitled to refrain from working within such period, otherwise he will be contrary to Labour Law and be subject to penalty, but he may immediately leave work if the employer allowed him to do so. The contract shall remain in force until the end of the notice period in accordance with the article no. 118 of the Federal Labour Law no. 8 of 1980. As per the law, notice period is one month and may be agreed to increase the same and may not decrease it. Finally, in according to the Ministry of Labour’s decisions now applicable, if the employee has completed two years with the existing employer, he may work with a new sponsor without a need for No Objection Certificate from the existing sponsor.
Frequently Asked Questions
30 day notice period must for resigning
Q: I have been working as an auditor for a private company under an unlimited contract. Now I’ve got a better job and I’ve given the resignation but the company says that I have to give a minimum of three months’ notice as per the offer letter I had signed while joining the firm. There is nothing mentioned about the notice period in the original labour contract which is registered at the Labour Department. Please tell me whether the 30-day notice period is required in my case.
A: Both an employer and employee are entitled, as per Article 117 of the labour law, to terminate the unlimited contract of employment any time, yet with legal and acceptable reasons. However, both parties (employer and employee) are bound to notify each other in writing (notice) at least 30 days before ending their labour relationship, either by termination or resignation.
Such a notice period is an indispensable term whether it is stipulated in the contract of employment or not. In other words, no matter this condition is mentioned in the contract or not, it is applicable and guaranteed by law to protect the rights of both parties.
Reducing notice period against contract
Q: I am working in a company and my labour contract is for three years. My contract is unlimited and I have already completed two years of service. In my contract, it is said that I have to give a three-month notice period before resigning. I am planning to quit. Is it possible to give a one-month notice period? If not, what are the consequences?
A: The established principles of law in the UAE are that the contracting parties must observe all the provisions of the relevant contract and must fulfil their obligations accordingly. Since three months’ prior notice is mentioned in your employment contract, as per the UAE Labour Law, you must give three-month prior notice for resigning the job. Otherwise, you will be held responsible for compensation in lieu of notice as per Article 119 of the UAE Labour Law.
According to the article, “If the employer or the employee has failed to serve notice to the other party for termination of the contract or has reduced the notice period, the party obliged to serve the notice shall pay to the other party an indemnity called “Compensation in lieu of notice”, and the indemnity shall be equal to the employee’s pay for the notice period in full or in proportion to the diminished part” (KT).
Employer cannot recover Visa renewal cost
Q: I have been working in a foodstuff trading company since 1998. My residence visa was renewed in February 2012, but my labour card is expiring in February 2013 and my job contract is unlimited. Recently, due to some health problems of my father in India, I was unable to continue my work in Dubai, and hence submitted my resignation giving a 30-day notice period, which the company has accepted. I wish to cancel my visa and travel back to India. But the company told me they would impose a one-year ban and recover my salary for 45 days towards my visa renewal charges. Is this legal?
A: It is not legal for your employer to recover the visa’s cost if you have given 30-day prior notice unless otherwise provided in your employment contract.
Under UAE laws, if an employee leaves a job without completing two years, then the Ministry of Labour will impose a work ban for six months or for one year if it is imposed by the company and during that time, the individual is not allowed to work in the UAE. Both these situations are not applicable to you as you have completed 14 years in the same company. Furthermore, a work ban is not applicable if the current or new employer is based in a free zone in Dubai.
