Complete the term specified in your labour contract

Q: I am working in a fabrication and engineering company in free zone, my company has given me termination letter due to restructuring of the staff and global recession. I have completed only 10 months in this company. What are the benefits I should get from my company? Please help me.

A: You have not mentioned whether your contract with your employer is limited or unlimited.

If the term of the labour contract was specified for a certain term and the employer cancelled it for a reason other than those provided in Article 120 of the UAE Labour Law, which empowers the employer to terminate or dismiss an employee without any notice for the reasons of misconduct, negligence, etcetra the employer has to compensate him for the loss. The amount of such compensation shall not exceed the wages due for a period of three months or the remaining period of the contract whichever is shorter unless an article in the contract states otherwise.

However, in the case of an unlimited contract, Article 117 stipulates that any party can terminate the contract for a valid reason and a minimum notice of 30 days to the other party.

Q: I have been working for a private company in Dubai for the past three years as a mechanical engineer. My contract is limited and is of four years. Recently, I got a job opportunity in the free zone. I have been told by my current employer that they will request the ministry to impose a one-year ban on me since I would be joining their competitor. But, this is not true. My would-be employer is not a competitor. I would like to know if I can work in the free zone if I resigned on completion of three years of service, without completing the four years' duration of my contract? The one-year ban which my current company is threatening to impose, is it a labour ban or an immigration ban?

A: First of all, let me tell you that as an employee who has signed a four-year contract with the employer, you have a responsibility to complete the contract term.

Regarding your queries, since you have completed three years with your current employer and being a professional, a ban may not be imposed on you for moving to a free zone company.

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