Question
I have been working in a Sharjah-based company for the past 20 years. In 2013, I submitted my resignation, but the management requested me to continue working for another year as the company was facing some problems at the time. I have decided to quit my job again, but I know they will use delaying tactics. I don't want to continue working, but I fear I will lose my gratuity if I quit. If the company does not allow me to leave even after serving a one-month notice period, what are my legal options?
Answer
Pursuant to your question, it may be noted that you are required to serve a notice period only if your employment contract is of unlimited duration. Since you have not specifically mentioned whether your employment contract is of unlimited or limited duration, we shall elucidate both situations here. Should you be working under an unlimited period contract, you may terminate your employment contract on a prior notice of 30 days. This is in accordance with the provisions of Article 117 of the Federal Law No. 8 of 1980 of UAE (the 'Labour Law'), which states:
Pursuant to your question, it may be noted that you are required to serve a notice period only if your employment contract is of unlimited duration. Since you have not specifically mentioned whether your employment contract is of unlimited or limited duration, we shall elucidate both situations here. Should you be working under an unlimited period contract, you may terminate your employment contract on a prior notice of 30 days. This is in accordance with the provisions of Article 117 of the Federal Law No. 8 of 1980 of UAE (the 'Labour Law'), which states:
"Both the employer and the worker may terminate a contract of employment of unlimited duration for a valid reason at any time following its conclusion by giving the other party notice in writing at least 30 days before the termination."
However, should you be employed under a limited period contract, you may terminate the contract without a prior notice period but you may have to compensate your employer for an amount up to 45 days of your salary. This is in accordance with provisions of Article 116 of the Labour Law which states, "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 prejudice the latter sustains as a result; provided that the amount of compensation shall not exceed half the worker's remuneration for three months or the residual period of the contract, whichever is shorter unless the contract contains a provision to the contrary."
Since you have mentioned that you intend to give 30 days notice period, it is assumed that your employment contract is of unlimited duration. Therefore you should give 30 days notice period to your employer.
You are eligible for gratuity in accordance with Article 132, which reads, "Where a worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows:
1) 21 days' remuneration for each year of the first five years of service.
2) 30 days remuneration for each additional year of service, provided that the aggregate amount of severance pay shall not exceed two year's remuneration."
It should be noted that gratuity is calculated on basic salary.
In the event your employer does not accept your resignation, you may approach the Ministry of Labour and file a complaint against your employer.
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