UAE Employment Ban and Contract Rules

Everyone is aware of UAE Ban rules in case of leaving job without completing contract but the question raise that what if worker completed his/her contract, and don’t want to renew the

contract with same company again, will he/she still can face Ban from company (employer)?

The answer is No, there is no Ban if you have completed the contract and not going renew it.

No Ban for not Renewing Contract with Same Company:

Your employer (company) may not be in a position to impose employment ban on you if you are not willing to renew the employment contract.

In simple words if you are working in a company and have completed or willing to complete the current contract but don't want to renew your employment contract again upon expiry, your company (employer) is not able to impose an employment ban.

Know the UAE Labour Law:

In accordance to Article 1(I)(1) of Ministerial Decree 766 of 2015 on Rules and Conditions for granting a permit to a worker for employment by a new employer issued by the Minister of Labour states:

"A new work permit may be granted to a worker upon the termination of the said worker's employment relation in the following instances in case of Term (limited) contracts:

The term of the contract has expired and not been renewed."

What if Company Terminate the Employee before Completing Contract:

If your employer (company) is planning to terminate you before your employment contract expires, they are liable to compensate you for arbitrary termination.

UAE Labour Law:

Article 122 of the Federal Law No. 8 of 1980 related to Labour Relations (the 'Labour Law') states:

"A worker's service shall be deemed to have been arbitrarily terminated by his employer if the reason for the termination is irrelevant to the worker and, more particularly, if the reason is that the worker has submitted a serious complaint to the competent authorities or has instituted legal proceedings against the employer that has proved to be valid."

Further, Article 1 (I) of the 'Ministerial Order Decree No. 765 of 2015 on Rules and Conditions for Termination of Employment Relations' states:

"An employment relation between employer and worker may be terminated as follows:

1: In the case of fixed-term (limited) contracts (approved by the ministry for a term of no more than 2 years), an employment relation is terminated if any of the following instances occurs:

A: The term of the contract expires and the contract is not renewed.

Based on the above-mentioned UAE labour rules and regulations, you and your employer may mutually (agree) consent to terminate the contract before the expiry of the term.

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In case you disagree for mutual termination, then you have the right to claim gross salary of 3 months if your employer terminates you.

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