Quitting before end of limited contract may attract ban

Q) I work in a company based in Sharjah. My labour contract is limited for three years. I completed my first year last month. Should I decide to resign, is my employer obliged to give me a return ticket home?

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Published: Tue 25 May 2010, 12:50 AM

Last updated: Mon 6 Apr 2015, 3:45 PM

A: According to labour law you are bound to complete your limited contract period. If you decide to cancel your contract before its completion, your employer is entitled to claim compensation from you, up to 45 days salary, for the loss incurred by your resignation. He may also impose ban on you.

Q: I work as a salesman with a company here. Collecting money from customers is one of my duties. I want to join another company, but my employer refused to release me unless I collect pending dues from customers or give my company a guarantee cheque attested by court. Is my company entitled to ask me to provide such a guarantee?

A: Your employer has no right to obtain guarantee cheque from you as long as you are not a guarantor of the debts of the company’s customers. You may file a complaint at the Ministry of Labour.

Q: I have been working in a contracting company in Sharjah for the last six years. The owner of our company stopped working without informing the employees and left the country without closing the company. Will the employees be entitled to end of service benefits?

A: You are entitled to end of service benefits and any other unpaid dues. If you are unable to find an amicable solution, I advise you to file a complaint at the Ministry of Labour.

Q: I have a personal loan with a bank in UAE and got terminated recently. I have been paying the instalments regularly. I could manage a job in another GCC country, not in the UAE. The bank has branches in that country also. Can the loan amount be transferred to other GCC country, so that I can repay there under the same conditions. I have an intention to pay back as promised, only thing is I will not be in the UAE.

A: It is up to the bank to decide whether the instalments of the repayment of the loan sanctioned here can be collected from any other country or not. Therefore, you may contact the bank for a solution.

K.K. Sarachandra Bose is a Partner/ Corporate, Commercial and Contract Lawyer at Dar Al Adalah Advocates and Legal Consultants. Readers may e-mail their questions to: ktedit@emirates.net.ae or send them to (Legal View), Khaleej Times, Dubai P.O. Box 11243.

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