The UAE Labour Law is quite active when it comes to ensuring that all the rights of the employer and employee are fully met. However, when switching to a different company, one should always be aware of rights like the very popular UAE Labour Law article 121 about concluding the word tenure.
The UAE law allows the employee to choose amongst three options; End-of Contract, Resignation, and Termination. In each case, there are specific rights from which one can benefit. Yet, there are some legal stipulations that you should abide by, especially when it’s resignation.
Since resignations originate from the employee’s side, here are some considerations to shed light on for a smooth and steady process.
Familiarise Yourself
The first step is to familiarise yourself with UAE Labour Law. There are two types of employment contracts there; limited and unlimited contracts. The limited contract is time-bound and links to the UAE residency visa, while the latter is open-ended.
Depending on the nature of your contract, make sure to read the clauses, terms, and conditions before setting out to legally resign from the job. Failure to do so, will land you in trouble and even pay heavy fines to the employer.
Read Your Employment Contract Thoroughly
As important as it is to read the employment contract thoroughly, it is often overlooked by the employees. So, don’t make this mistake and read every clause of the contract. Also, make sure that you apply for the resignation with the intention of serving the notice period as stated along with other points in the contract.
In addition to this, many companies have a competition clause, as part of the contract. It prevents the employees from joining a competitor. Failure to comply with this regulation will jeopardise your position, and the UAE law may also take an action.
Don’t Run Away
Running away suddenly or in a secret manner, without informing the organisation is an act of absconding. An employee is deemed abscond if he doesn’t report to work for seven or more days. It is a punishable offense and can also result in a one-year labour ban in the UAE. So, make sure that you keep your company posted on any sudden departures.
It is Your Decision
Handing in a resignation is the sole decision of the employee. One does not have to ask permission from their employer before handing in their resignation. However, it’s always better to discuss your plans with your employer beforehand so that they can make arrangements to identify a replacement. This ensures a complete handover takes place before you leave the company.
Submit a Formal Resignation
When concluding your work tenure, it is important to submit a formal resignation. You can either do it via email or hand it out physically. Just make sure that the intentions are clear and give the employer accurate dates for when you are leaving. This clarity ensures that all the stakeholders are well-informed and eliminates any room for miscommunication.
Counter-Offer
Be prepared for a counter-offer that is about to head your way. Many companies do so to retain employees. For this, they make efforts by giving bonuses, increments and even negotiations to hold you. This allows the employee to assess their options and make a call to either stay or move ahead.
Notice Period
When resigning from a company, make sure to serve your notice period. This notice period can vary from 1 month to 3 months. It is also clearly written in the employment contract. One can skip it only if the employer has willingly waived it off.
Calculating Gratuity
Gratuity is monetary compensation for the employee at the end of their employment period. In order to calculate it out, the employer takes into account the years of service. So if you have been an employee for more than a year, you are eligible for some additional benefits too. Make sure to calculate gratuity pay when resigning from an organization.
Return all Company Assets
When resigning from a company, return all the company-owned assets and intellectual rights. Employee IDs, passwords, confidential documents, laptops, devices, and everything entrusted by the company, should be returned back safely and with integrity. Even if the contract concludes in light of force majeure, employees should return all the assets and retain a sense of professionalism.
Moving Forward
It is always nice to stay on good terms with your previous company and help them in whatever way you can. And resigning smoothly and without incurring any legal liabilities during this transition is a practical and professional way to do so. Along with this, one can also recommend some highly skilled and trained people from your group of acquaintances who can become a valuable asset or your replacement for their company.
