Contract Cancellation in UAE

Asalam-oa-likum, Hello & Marhaba to UAE Expats

We have been asked by our visitors regarding:

1: What is the latest Law for Limited Term Contracts?

2: How to Get Rid of Labor Ban in case of No NOC Letter?

3: Can we leave job before completing 1 Year in Company?

4: How to avoid 1 year labor ban in UAE?

5: What are the Required Documents for NOC?

6: Is Education or Professional Certificates are mandatory to avoid 1 Year Ban in UAE?

7: Please describe Federal Law, Article 115 & 128 concerning Limited Contracts?

8: What to do if Employer is not giving NOC for new Job?

Can we leave job before completing 1 Year in Company?

As per Article 128 of Federal Law No. 8 of 1980 regarding Regulation of Labour Relations or Labour Law states: “Where a non-national worker 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 worker to keep him in his service before the expiry of such period.”

How to avoid 1 year labor ban in UAE?

You can easily avoid ban if your current employer (company) is willing to provide you the NOC to work with another employer (company) then the issue of labour ban may not arise.

Please follow below steps to avoid Ban.

Step: 1

Get NOC in Arabic on previous/current company’s original letter head, get company stamp and signature by the authorized signatory whose signature is shown in Labour Establishment Card and attach your termination letter with copy of Labour Establishment Card.

Step: 2

Get offer letter in Arabic on new company’s letter head, get new company stamp and Signature by authorized signatory, and don’t forget to attach copy of Labour Establishment Card with Company License.

Step: 3

Prepare a personal request letter in Arabic to remove the ban and sign by you.

Step: 4

Take all above mention documents to nearest Tas’heel Centre, they will make a covering letter (MB#) with envelope. Pack all these documents and submit at Ministry of Labour main office located in Al Qusais.

Step: 5

Wait for the approval from Ministry of Labour by SMS or you can track your request status through official website or Toll Free Number.

Once it is approved, you can apply and work inside UAE without any Ban.

What to do if Employer is not giving NOC for new Job?

In case your employer (company) is not willing to provide the No Objection Certificate and want to cancel your labour contract, the Ministry of Labour may impose 1 year or 6 months labour ban on you.

However, in the event a ban gets imposed on you, your new employer (company) may apply for lifting the ban based on your professional qualification and or as per the salary offered by your new employer (company).

Is Education or Professional Certificates are mandatory to avoid 1 Year Ban in UAE?

It is up to your profession or visa category, there are 5 categories in UAE that has been divided into professions, and Yes Attested Educational certificates will require.

Please click here to Check Your Professional Qualification list and profession category.

What to do if Employer or Company cancel your contract?

In case your contract is cancelled by your company, your employer (company) shall be Liable to compensate the Employee (worker) with 3 months of remuneration (payment).

As per Article 115 of Labor Law: “Where an employment contract is for a definite term and the employer revokes it for reasons other than those specified in Article 120 he shall be required to compensate the worker for any damage the latter sustains, provided that the amount of compensation shall in no case exceed the aggregate wage due for a period of three months or the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.”

What to do if Employee want to cancel his/her contract before completing 1 Year?

In case of breach by the employee (worker) the employee (worker) shall be liable to compensate the employer for up to half the employee’s remuneration for 3 months.

As per Article 116 of Labor Law: “Where a contract is revoked by the worker for reasons other than those specified in Article 121, he shall be required to compensate the employer for any damage the latter sustains as a result, provided that the amount of compensation shall not exceed half a month wage for three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.”

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