Employment ban in UAE if contract is terminated before 6 months

Dubai - An employment ban may be imposed even if the termination is by mutual agreement between the employer and the employee.

I am employed on a limited duration employment contract by a limited liability company, which is established in the Ras Al Khaimah Economic Zone (RAKEZ). The probation period of my job contract is ongoing, and an employment-residence visa has been issued to me on my employer's sponsorship. However, I intend to resign from my employment as I am not comfortable with the working atmosphere in the company and the fellow employees. Am I liable to bear the visa costs? Will an employment ban be imposed on me?

While you have confirmed that your employer is subject to the provisions of Federal Law No. (8) of 1980 regulating employment relations in the UAE (the 'Employment Law'), it may be presumed that the several ministerial decrees, issued in furtherance of the Employment Law may also be applicable, in addition to the Employment Law, in respect of your job matters.

And therefore, it may be noted that the relevant provisions of the Ministerial Resolution No. (52) of 1989 on the rules and procedures to be adopted at the labour permits sections with respect to the recruitment of non-national labours for the employment in UAE (the 'Ministerial Resolution No. 52 of 1989') and the  Ministerial Decree (766) of 2015 on rules and conditions for granting a permit to a worker for employment by a new employer (the 'Ministerial Decree No. 766 of 2015') may also be applicable in your case.

Pursuant to the first part of your query, it may be noted that as per the provisions of the Ministerial Resolution No. 52 of 1989, an employer is required to undertake at the time of making an application for recruitment of an employee that he shall sponsor and be responsible for the person being recruited. It may, therefore, be inferred that an employer may not collect or deduct employment visa costs from the employee in the UAE. This is in accordance with Article 6(a) of the Ministerial Resolution No. 52 of 1989, which reads as follows:

"The employer or its legal representative shall sign the recruitment application form prepared by the ministry for this purpose. Such form shall include the following undertakings:
an undertaking from the employer to the effect that he shall sponsor and be responsible for the recruited employee, the bearing of his recruitment expenses and his employment in accordance with the employment contract in a way not prejudicing the provision of the Federal Law No. 8 of 1980 referred to herein."

Pursuant to the above, it may be noted that you shall not be required to pay to your employer, the cost for your employment visa, should you decide to resign from your employment.

In response to the second part of your query, it may be noted that an employment ban may be imposed on an expatriate employee, if he resigns from his limited duration employment prior to the completion of the employment contract. This is in accordance with the provisions of Article 128 of the Employment Law, which reads as follows:

"Where a non-national employee leaves his work without a valid reason before the expiry of a contract for a limited period, he may not, even with the employer's consent, take up other employment for one year from the date on which he left his work. It shall not be lawful for any other employer who is aware of the fact to recruit such employee or keep him in his service before the expiry of such period."

Further, if the termination of an employment contract takes place before the completion of six months, an employment ban may be imposed on the employee to work even if such termination is by mutual agreement between the employer and the employee, except where the employee qualifies for the Skill Level 1, 2 or 3 as classified by the Ministry of Human Resources and Emiratisation. This is in accordance with the provisions of Article 1 (I) (2) of Ministerial Decree No. 766 of 2015, which states:

"A new work permit may be granted to an employee upon the termination of the said employee's employment relation in the following instances: The two parties (employee and employer) mutually consent to terminating the contract provided the employee has completed a period of no less than six months with the employer; the latter provision is waived for employees that qualify for skill levels 1, 2 and 3, as per the ministry's classification."

Based on the aforementioned provisions of law, the competent authority at RAKEZ, governing your employment, may at its discretion impose an employment ban on you, should you wish to resign from your employment, now.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.