# Employment Contract query



## jeremy2468 (Dec 5, 2013)

I'm employed on a Tecom Visa and I am on a limited contract with my employer. I signed an employment contract (limited contract) that says if I am to terminate the contract prior to completing any valid term of employment with the company, I will be responsible for reimbursing the company:

- employment visa application and cancellation costs
- an early termination fee which is equal to the higher of the remaining months of compensation to complete the two year employment period or 2 months of notice period. 

So if I've completed 10 months does this mean I have to pay the employer another 14 months salary if I am to leave? Is this allowed? Can't I just give a notice and leave once completed?

I would really like to switch to a new job as I am very unhappy with the situation at work. I've been told by TECOM that for contract queries to visit the legal department in Studio City. I will be doing that soon - but i'm afraid of this contract binding me to pay the termination fee even if i serve a notice. 

Any help and advice on this matter is much appreciated.


----------



## Chocoholic (Oct 29, 2012)

The paying of compensation for time left on the cotnract seems a little out there.

They are fully entitled to ask you to reply the visa costs and any other costs incurred though.

You really need to go and speak to the TECOM office.


----------



## Gavtek (Aug 23, 2009)

Check Article 116 of the Labour Law, this covers your situation.

You would need to compensate your employer for any damages sustained limited to "half a month wage for three months or the remaining term of the contract, whichever is shorter, unless otherwise stipulated in the contract".

If you signed a contract stating that you'd reimburse the company 2 months salary, then I guess that's what you need to do. Even if you didn't under the Labour Law, you'd need to pay 1.5 months salary. 

Don't think you should have to pay the visa application costs though.


----------



## Chocoholic (Oct 29, 2012)

Gavtek said:


> Check Article 116 of the Labour Law, this covers your situation.
> 
> You would need to compensate your employer for any damages sustained limited to "half a month wage for three months or the remaining term of the contract, whichever is shorter, unless otherwise stipulated in the contract".
> 
> ...


They've been very cheeky though, stating he has to repay whichever is HIGHER - the outstanding salary or two months.

I don't see why people shouldn't be asked to repay visa costs, afterall a company has forked out in good faith that an employee will stay with them for the contract term.


----------



## Gavtek (Aug 23, 2009)

If he's completed 10 months then he's contributed enough time to cover the insignificant visa cost to the company. 

If the employee is made liable for it at all, it should be linked to a probationary period.


----------



## jeremy2468 (Dec 5, 2013)

Chocoholic said:


> The paying of compensation for time left on the cotnract seems a little out there.
> 
> They are fully entitled to ask you to reply the visa costs and any other costs incurred though.
> 
> You really need to go and speak to the TECOM office.


Thanks Chocoholic. And the termination fee is what I am worried about. I am okay with having to pay back the visa costs but not the remaining unworked for months' salary!


----------



## Chocoholic (Oct 29, 2012)

Gavtek said:


> If he's completed 10 months then he's contributed enough time to cover the insignificant visa cost to the company.
> 
> If the employee is made liable for it at all, it should be linked to a probationary period.


Sadly though, this is why they brought in the 2 year rule instead of 3 year visas.


----------



## Camo1 (Dec 5, 2013)

Jeremy,
Limited employment contracts are contracts for a specified duration with specific commencement and completion dates, and unlimited contracts by which the employee will continue to work for the employer from a specific date till such time as the employment contract is terminated by either party after giving prior notice.

But let’s stick with limited a contract which is what you have; a limited contract has a commencement and completion date. Its term cannot be in excess of a period stated in contract. It can however be renewed on mutual consent for a similar or lessee period and the employment will terminate at the end of the contract period.

If the employer terminates the contract for reason other than those specified in Article 120, he would be liable to pay compensation to the employee. If the contract is cancelled by the employee for reasons other than those stipulated in Article 121, he will be liable to compensate the employer against any loss resulting from its cancellation. The amount of compensation shall be calculated on the basis of half-a-month's wages for three months or for the remaining period of the contract whichever is less, unless the contract states otherwise.


----------



## mariavergara88 (Dec 5, 2013)

Hello! I know a lot of queries regarding this has been posted here, I apologize in advance.

I'm a Filipina, I'm just new here in Dubai. I am working now, but I'm on Father's Visa. I started working for my current employer last October, and they just gave my Offer Letter, which I signed, after a month. It says there I "will be employed on an unlimited contract". And I have spoken with my employer if they are going to provide me a labour card and he said that they will provide me. But up until now, they're still not giving me a labour card and an employment contract. And another issue is that my salary is always delayed, and they're paying me cash. I don't have pay slip.

Because of these circumstances, I want to resign and look for another job. But, I have read in Labour Law and a lot forums that they will lift a 6-month ban, which also applies on father's visa/ husband's visa, if you didn't complete minimum of 2-year service. I have also read that they will automatically lift the ban once MOL cancelled your Labour Card. In my case, they still not giving me a Labour Card. 

My questions are:
1. Is Offer Letter the same as Employment Contract? 

2. Can I tender my resignation even I signed the Offer Letter and even it says there that I am required to serve a minimum of 2 years service?

3. If I resigned, do I still need NOC?

4. Am I going to be banned for six months after I resigned? And can the company hold me liable for damages?


I'm really confused now, and I really need some answers and advises. Please please help me. I would be very grateful for all the replies. Thank you so much in advance

Regards,
Maria


----------



## Visp (Mar 23, 2013)

mariavergara88 said:


> Hello! I know a lot of queries regarding this has been posted here, I apologize in advance.
> 
> I'm a Filipina, I'm just new here in Dubai. I am working now, but I'm on Father's Visa. I started working for my current employer last October, and they just gave my Offer Letter, which I signed, after a month. It says there I "will be employed on an unlimited contract". And I have spoken with my employer if they are going to provide me a labour card and he said that they will provide me. But up until now, they're still not giving me a labour card and an employment contract. And another issue is that my salary is always delayed, and they're paying me cash. I don't have pay slip.
> 
> ...


Seems like there's no official record of you being employed with them, so they don't have standing to report you for anything.


----------



## BedouGirl (Sep 15, 2011)

Have you given them any documents to process your labor card? Have you signed anything other than the offer letter that was printed on their letterhead which gave you when you joined? They are breaking the law for not processing your labor card. If they were to be inspected, they would be fined and, likely as not, so would you.


----------



## mariavergara88 (Dec 5, 2013)

Visp said:


> Seems like there's no official record of you being employed with them, so they don't have standing to report you for anything.


Dear Visp,

Thank you for your response, I really appreciate it. Ahm, If I resigned and the company didn't give me NOC, am I going to have a problem with my new employer? And am I going to be banned? I'm sorry if I'm asking you too many questions.

Thank you and regards.


----------



## mariavergara88 (Dec 5, 2013)

BedouGirl said:


> Have you given them any documents to process your labor card? Have you signed anything other than the offer letter that was printed on their letterhead which gave you when you joined? They are breaking the law for not processing your labor card. If they were to be inspected, they would be fined and, likely as not, so would you.


Dear Bedou Girl,

Hello! The only document I gave to them is a copy of my passport and I didn't sign any document regarding my employment other than the offer letter which they gave to me after a month I joined. I'm really worried because I've been working for them for about two months now and I still didn't have an employment contract and/or labour card. I have spoken with them about this but there's still no update to whether they will really give me or not. That's why I want to resign and start to look for another job. But I have read a lot of consequences if you weren't able to complete the minimum 2-year service even if you're in father's visa/ husband's visa and unlimited contract. I am really confused now, I really need advises regarding this matter. I would be very grateful for your response.

Thank you and regards,
Maria


----------



## BedouGirl (Sep 15, 2011)

The way I see it is if you haven't signed any official - government documents - they can't touch you. Once you sign a labor contract, that changes. If you get out now, you should be fine. If they threaten you with a ban, tell them you will go to the MoL and say you have been working without a labor card. You don't need an NOC if they haven't processed your labor card.


----------



## Visp (Mar 23, 2013)

mariavergara88 said:


> Dear Visp,
> 
> Thank you for your response, I really appreciate it. Ahm, If I resigned and the company didn't give me NOC, am I going to have a problem with my new employer? And am I going to be banned? I'm sorry if I'm asking you too many questions.
> 
> Thank you and regards.


Your 'non-visa-sponsoring' employer doesn't give you an NOC. The only person who gives you the NOC is your Owner AKA visa sponsor (it's a primitive society here, once you scratch the surface). If you're on your husband's visa, there's an implied assumption that you have his permission to work, so you can do as you like.


----------



## mariavergara88 (Dec 5, 2013)

BedouGirl said:


> The way I see it is if you haven't signed any official - government documents - they can't touch you. Once you sign a labor contract, that changes. If you get out now, you should be fine. If they threaten you with a ban, tell them you will go to the MoL and say you have been working without a labor card. You don't need an NOC if they haven't processed your labor card.


Dear BedouGirl

Thank you so much for your reply, reading this really made me feel relieved. But one more thing, can I resign and only give them a week or 15 days notice? Because according to the Offer Letter I signed...


"You may resign from your position by giving a one-month notice in writing. ...

Furthermore, should you fail to submit a one-month resignation notice, you will have to pay notice period equivalent to one month basic salary."

I want to resign and leave asap, but I am worried that they will ask me to pay them for one month basic salary even it's only offer letter.


Thank you so much.


----------



## BedouGirl (Sep 15, 2011)

You signed to agree to the month's notice and to paying them if you didn't, I don't think they can hold you to this legally because nothing is official between you and them but they could withhold money from your last pay cheque and, at the end of the day, you can't take them to MoL because you've been working there illegally. You could threaten them with that, but that would be your call. Try talking with HR and saying you want to go ASAP and see what they say.


----------

