Resignation Under UAE Labor Law

Joining and leaving a company is a part of corporate life. There are a lot of people who join and leave the company on the terms as decided upon at the interview table during joining. But there are certain norms associated with leaving the firm – you have to follow a proper procedure for resigning from your position. Through this blog, we will be dealing with the topic of resignation under the UAE labor law. If you are an employee or an employer in the UAE, reading this blog becomes essential for you to understand the intricacies of resignation under the UAE labor law.

What Is The Difference Between Resignation And Termination?

First of all, we will be starting with the basics. We will understand the differences between resignation and termination. For a better understanding, we have separated them below:

Resignation:

• Voluntary act: Resignation is considered to be when an employee decides to quit their job due to personal or professional reasons.
• Notice period: When resigning, as an employee, you have to inform your employer and give a certain amount of notice to your employer for replacement.
• Employee’s decision: It is the personal decision of the employee to resign, no one can force them unless they are at some fault.

Termination:

• Involuntary act: Unlike the resignation, in termination, the employer ends the employment relationship with an employee.
• Reasons: The cause of termination can be poor performance, misconduct, or redundancy at the office or workplace.
• Employer’s decision: In termination, it is the employer who makes the decision to terminate the employee.

What Is The Legal Framework For Resignation?

Now that you have understood the basics of resignation and termination, it is time to look at it from a legal point of view. Below, we have laid the legal framework of resignation in the UAE:

Resignation Letter:

• Formal communication: In order to resign from the company, you first have to communicate your intention formally in writing to the employer, most preferably by mail.
• Clear intention: In your resignation, there should not be any ambiguity and your letter should clearly state your intention to resign with every essential detail to avoid any future conflict.

Notice Period:

• General rule: In the UAE, under UAE Federal Law No. 33 of 2022, you as an employee have to give a notice period to your employer of 30 days to find a suitable replacement in the company.
• Exceptions: The notice period of 30 days to 3 months heavily relies on your position in the company, length of service, or what specific contract terms you have signed while joining.

Understanding Resignation Process In UAE: Step-by-Step Guide

After the legal framework, let us now look at the step-by-step process of the resignation process in the UAE. Some steps may overlap with the legal framework. The resignation process encompasses various steps, including:

1. Review Your Employment Contract

• Notice period: The first step is to find out the notice period as specified in the contract that you signed at the time of joining.
• Termination clauses: Examine the contract in detail to understand any specific clauses related to resignation or termination.

2. Draft a Resignation Letter

• Formal communication: After you have decided to leave the company, you will have to write a formal resignation letter to your team leader or the HR department.
• Clear intention: You have to make sure that you clearly state your decision to resign with the effective date.

3. Submit the Resignation Letter

Hand-deliver or email: The resignation letter must be sent via mail, or sometimes in person. But make sure that your team leader or the HR department receives a copy of your resignation.

4. Complete Pending Tasks

Before leaving the company, you have to complete the given tasks and assignments to achieve the given goal before your last day.

5. Coordinate with Your Replacement

In some cases, your replacement comes before you leave. So, you might have to assist the newcomer in training or transferring essential details.

6. Handle Company Property

It is necessary that you return every asset of the company, such as laptops, phones, or uniforms before leaving.

7. Settle Accounts

• Final salary: Before leaving, ensure you have received your final salary, including any accrued wages, overtime pay, and allowances.
• End-of-service gratuity: If you have served enough to the company, you might claim your end-of-service gratuity.
• Settle dues: It is important that you settle any outstanding dues, such as advances or loans to avoid any future inconvenience.

8. Get Your Documents

Obtain an employment certificate, salary slips, and other relevant documents.

9. Update Your Visa

If your residency visa is connected with your employment contract, update your visa status.

What Are The Consequences of Resignation Without Notice?

• Legal Penalties: Fines of up to AED 50,000 or severe punishments like imprisonment.
• Negative Reference: Employers may provide negative references, affecting future job prospects.
• Labor ban: In some cases, you may be banned from working in the UAE.
• Loss of End-of-Service Gratuity: You may lose part or all of your gratuity.
• Difficulty in Obtaining a New Visa: Future visa applications may be affected.

To Conclude

So, this was a comprehensive blog on resignation in the UAE under labor laws. From understanding the basics of resignation and termination to the consequences of resigning without giving any notice, we have covered it all! We hope you have liked the information and will share it with anyone who needs to know about resignation under UAE labor law.

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