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dbxsoul · Dec 30, 2008

The issue is do you want to leave your current sponsor or not? You don’t specify this… In most cases if the contract draws to a close and both parties wish the situation to remain a new contract is entered into.

1a. Normally yes, the Labour contract will run concurrently with the Residency Visa which is of 3 year duration as well.

1b. No, you can transfer to a new employer without exiting. Bear in mind though that your contract has another 9 months to run, the Labour Law can change a lot in that time.

2a. Yes and no, under the current law you would be banned from working for 6 months (if you did not get a NOC), your family don’t’ work for your employer so are not banned…. But see the point bellow relating to residency sponsorship.

2b. Before your residency sponsorship is cancelled in September (by your employer) your family will have to be cancelled from your sponsorship (as you do this in your own right). When this happens you have 30 days to leave the country or transfer your Labour card to a new employer. After 30 days you would become illegal and would start accumulating a fine. If you can transfer your Labour Card within the 30 days you can then re-apply for residency for your family if you still meet the sponsorship criteria, note this (residency) is a new application and not a transfer as with the Labour Card.

ArchitectRoel · Dec 30, 2008

dbxsoul wrote:The issue is do you want to leave your current sponsor or not? You don’t specify this… In most cases if the contract draws to a close and both parties wish the situation to remain a new contract is entered into.

dbxsoul, thank you very much for answering my queries..Actually, I'm confused if I'm going to LEAVE my current sponsor when my contract ends or to RENEW my contract.

invictors · Dec 30, 2008

I was on an unlimited contract.I'm been working for four months now on a six months probation period.The company has given me a termination letter stating the reason was due to the economy down.
- Will I be banned for six months or one year?
- The Company will give me NOC if I can prove of getting a job after
my visa cancellation during my 28 day grace period.
- If I pay for my return flight ticket,NOC will be given.

What do you think about this situation?

dbxsoul · Dec 31, 2008

Strictly speaking and according to the law you would be banned for 6 months.

I would however, take the termination letter with you and pay a visit to the Labour Department. I think that you would have to get permission from the LD in this instance. According to the current law it would not matter if your current employer gave you a NOC or not, as you have not worked out your probation or the minimum 1 year stipulated by the legislation regarding the transferring of labour cards. What they are offering as well (NOC for payment of return flight) is not legal either, if you were to get a NOC and transfer to a new employer then the new employer would be responsible for your return flight as per the law. What they are asking you to do is forgo their responsibility (the flight) for a NOC, but there is no guarantee of being legally allowed to transfer. This is why I have said that you need to get a ruling in your favour by the LD before accepting your current employers offer.

As I mentioned in a previous posting, due to the financial/ economic situation there will be more and more people in a similar situation as yours – the LD may well make an amendment to the rule to include these circumstances.

ArchitectRoel · Jan 01, 2009

ROUND 2:
Due to the current situation I decided to continue my contract with my current Employer. So I’ll just wait for my contract to end and renew my contract soon.
My questions are:
3. If I renew my contract, can I get my 3 years GRADUITY right away?
4. Can I renew my contract and residence visa “together” with my dependents -wife & kids? (my reason is that I don’t want any exits because it will affect their school)
5. Just to clarify=No need NOC for this case right?

dbxsoul · Jan 02, 2009

ArchitectRoel wrote:ROUND 2:
Due to the current situation I decided to continue my contract with my current Employer. So I’ll just wait for my contract to end and renew my contract soon.
My questions are:
3. If I renew my contract, can I get my 3 years GRADUITY right away?

No, in any case 100% of gratuity is only paid after working for 5 full year with the same employer. It cannot be paid out in the middle of the contract.

4. Can I renew my contract and residence visa “together” with my dependents -wife & kids? (my reason is that I don’t want any exits because it will affect their school)

Yes, they would have been issued thier residency after yours in anycase. Remember you will have to pay for the extension and your wife will have to re-do her medical.

5. Just to clarify=No need NOC for this case right?

Correct. No NOC required as you are staying with the same employer, the contract is simply being renewed.

ArchitectRoel · Jan 08, 2009

FOLLOW UP

dbxsoul wrote:No, in any case 100% of gratuity is only paid after working for 5 full year with the same employer. It cannot be paid out in the middle of the contract.

What do you mean sir? what if your contrcat is 2 years and you wish to transfer to another company at the end of the contract-you still cannot get your Graduity?

dbxsoul wrote:Yes, they would have been issued thier residency after yours in anycase. Remember you will have to pay for the extension and your wife will have to re-do her medical.

We have DIFFERENT EXPIRY DATES in our residence visa...so if my Residence visa expires it won't affect their visa? (as they have 1 year expiry date later than me)

dbxsoul · Jan 08, 2009

FOLLOW UP
dbxsoul wrote:
No, in any case 100% of gratuity is only paid after working for 5 full year with the same employer. It cannot be paid out in the middle of the contract.

What do you mean sir? what if your contrcat is 2 years and you wish to transfer to another company at the end of the contract-you still cannot get your Graduity?

It depends on the type of contract you have, if you have a 2 year LIMITED/ FIXED TERM contract then, yes you would be entitled to the gratuity at the end of the contract.
If you are employed on an UNLIMITED contract then you would only receive a small portion of your gratuity as per the regulations governing the payment of gratuities, and after 2 years service this would not amount to very much.

Severance Pay Article 132

A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end 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' wage for each of the first five years of service.
2. 30 days’ wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year's wage.

Article 133
A worker shall be entitled to severance pay for any fraction of a year he actually served, provided that he has completed one year of continuous service.

And also

Article 137
Where a worker under an indefinite term contract abandons his work at his own initiative after a continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article. Such a worker shall be entitled to two thirds of the said severance pay if his continuous service exceeds three years up to five years, and to the full severance pay if it exceeds five years.

dbxsoul wrote:
Yes, they would have been issued thier residency after yours in anycase. Remember you will have to pay for the extension and your wife will have to re-do her medical.

We have DIFFERENT EXPIRY DATES in our residence visa...so if my Residence visa expires it won't affect their visa? (as they have 1 year expiry date later than me)

Yes, you would have arrived in Dubai before them, or have had your residency sponsored by your employer before you could sponsor your family, that is how the system works. In fact, it sounds like they joined you 1 year after you joined your company, hence the 1 year difference in the validity of the stamps.

You must bear in mind however how sponsorship works, if your sponsorship is withdrawn, removed or terminated by your employer it is automatically lost by anyone who you may be sponsoring for residency in your personal capacity (immediate family or domestic servants). What would normally occur is that if your sponsor applies to have your residency cancelled, they will start to cancel anyone who you are sponsoring as well – irrespective of how long they still have on their residency visas.

ArchitectRoel · Jan 08, 2009

dbxsoul wrote:

You must bear in mind however how sponsorship works, if your sponsorship is withdrawn, removed or terminated by your employer it is automatically lost by anyone who you may be sponsoring for residency in your personal capacity (immediate family or domestic servants). What would normally occur is that if your sponsor applies to have your residency cancelled, they will start to cancel anyone who you are sponsoring as well – irrespective of how long they still have on their residency visas.

In contradiction to the underline above:
So if I continue with my current Employer on Sept. 2009, then there is no need to renew my family’s residence visa right away, correct? Therefore, I can renew there residence visas after few months or 1 year later?

dbxsoul · Jan 08, 2009

yes, you are correct. sorry if it was not clear enough, if you continue with the same employer then there is no reason to renew you families residency until 1 month prior to it expiring - 1 month is a good saftey net.

dbxvisitor · Jan 15, 2009

Can RP be stamped in UAE, under the sponsorship of a company in ZAFZ if there is a valid RP of Qatar in the Passport?

(If a person proceeds on leave from Qatar and taken up a job in ZAFZ)

bong suniga · Jan 20, 2009

1. I'm 26 years old, working here in Dubai as a Civil Engineer for two and half year, I want to leave my employer on the expiration of my labour card which is on October 4 2009.
2.I signed UNLIMITED contract from Sept 2006 to _____, with clause article 127, and the employee is not permitted to work in a competitor company for 2 years after termination.
3.as a civil engineer I got envolved in client transactions and company secrets, as per article 127.

MY QUESTIONS ARE:
1. If my labour card expires, will I be subject to for banas per article 127? Since I didnt terminate or cancel my contract, it expires.
2. I I have to submit 1 month notice for resignation what month will it be?
3. Am I allowed to work to abu dhabi or to freezone since my present employer is in dubai?
4. Or am I allowed to work as draftsman since my present position is civil engineer? It's both in Construction business but Draftsman is just making drawings and not envolve in company secrets.
5. Are there any ban lifting fees as well for the article 127?
6. Please just give me your legal advise, which I can leave my present company and work to other company without being banned.

dbxsoul · Jan 21, 2009

First thing, your contract only expires in Oct 2009 – that is 8 months away, plenty can happen with the law in that time, so things which are valid may be invalid then.

If you leave at the end of the contract period, offering 1 months notice of your intention (at the start of September 2009), then you will not be banned – in accordance with the current regulations. You don’t resign, you simply state that you have no intention of renewing the contract.

Is the Article 127 specifically included in the Legal Labour contract document (English/ Arabic one)? The company can take civil action against you if you do break this agreement. There is no ban per se with regards to Article 127; it is simply a restraint of trade clause that can be implemented legally through the courts. Normally for a restraint to be effected (outside of Article 127 – such as the duration of the restraint or any other conditions), then it is supposed to be included in the Official Contract.

As you are considering working in an allied, but commercially non-threatening position there should be no case for your ex-employer to try and take action against you. He has to actually prove in the courts that you had caused him financial harm and used his company information for your benefit.

At the moment there is no such thing as “Ban lifting” fees (your point 5) and Labour bans cannot be lifted by paying money!

Point 6. The Ban is there to restrict the movement of persons from one position to another, in your circumstances, if you tell them that you will not be renewing your contact they cannot ban you, in your letter simply state that you will be moving to another company when the contract expires and taking up the position as a draftsman. They may threaten, but cannot actually do anything unless you use the information you have against them – then they would be within their right to open a case with the labour courts.

bong suniga · Jan 26, 2009

Thank you very much dbxsoul.

1. So the means that my labour card expiration on October is my contract expiration as well?Yes, Article 127 specifically included in the Legal Labour contract document (English/ Arabic one), yes , duration of (2) years is mentioned in the Official contract that I cannot join a competitor company.

Actually sir I plan not to renew my contract to my present employer and then go back to my country for 1 month, then I'll go back here in dubai as visit visa to find new employer.

My Questions are:

2. Is Article 127 not automatically ban an employee?Or it should be with the request of the employer and proved to the court about his alligations before the ban is empose to the employee?Unlike the 6 months ban from the labour if you cancell a contract, which is the Ministry of Labour automatically emposed even without the employer request. Am I correct Sir?

3. Is that mean when I come back here in Dubai from my country the ministry of labour will not be a problem for me having a labour card, if I get a new employer? as long as my present company dont know?

4. I'm just Curios sir, if ever the employer proved to the court that the employee is positive against article 127. What are the punishment.

Thank you for answering all my questions and sharing your knowledge, you help me a lot sir...I appreciate it.

jhakkasbanda · Jan 26, 2009

I was working for a private company in dubai for last 4 years. Now I have a job offer from a government company in Abu dhabi. My previous company is readu to give NOC.
I wish to wat are the procedures for changeover for self and family. and also i have got a car registered in dubai and under bank loan.
do i need to cancel visa for my family and sell off the car??

dbxsoul · Jan 26, 2009

jhakkasbanda wrote:I was working for a private company in dubai for last 4 years. Now I have a job offer from a government company in Abu dhabi. My previous company is readu to give NOC.
I wish to wat are the procedures for changeover for self and family. and also i have got a car registered in dubai and under bank loan.
do i need to cancel visa for my family and sell off the car??

Hi there. If it is a government company or government department there is no ban. i would check though with the company in question as they will be able to tell you exactly as they would have been through this process before with other staff.

With regards to your family you would have to cancel their sponsorship before yours is terminated. This gives you about 30 days to join with the new company and re-apply for their residency sponsorship in AD.

Regarding the car, it would be best to speak with the bank first, only do this once you have a signed offer from the new company or have even started working for the new company, all they will need to do is have proof of salary from your new employer as I'm sure that your salary will still be paid into the existing account.

The vehicle would have to be re-registered in AD although I'm sure you would be able to use it for a while before transferring its registration. I would suggest that you look elsewhere on this forum as I know the question has come up before, but have no experience in this process.

bong suniga · Jan 26, 2009

Thank you very much dbxsoul.

1. So the means that my labour card expiration on October is my contract expiration as well?Yes, Article 127 specifically included in the Legal Labour contract document (English/ Arabic one), yes , duration of (2) years is mentioned in the Official contract that I cannot join a competitor company.

Actually sir I plan not to renew my contract to my present employer and then go back to my country for 1 month, then I'll go back here in dubai as visit visa to find new employer.

My Questions are:

2. Is Article 127 not automatically ban an employee?Or it should be with the request of the employer and proved to the court about his alligations before the ban is empose to the employee?Unlike the 6 months ban from the labour if you cancell a contract, which is the Ministry of Labour automatically emposed even without the employer request. Am I correct Sir?

3. Is that mean when I come back here in Dubai from my country the ministry of labour will not be a problem for me having a labour card, if I get a new employer? as long as my present company dont know?

4. I'm just Curios sir, if ever the employer proved to the court that the employee is positive against article 127. What are the punishment.

Thank you for answering all my questions and sharing your knowledge, you help me a lot sir...I appreciate it.[/quote]

dbxsoul · Jan 26, 2009

Thank you very much dbxsoul.1. So the means that my labour card expiration on October is my contract expiration as well?

The labour card and labour contract run concurrently for the same periods. The expiry date is stated on the card. Your residency visa as shown in your passport may be slightly different, as labour can be processed independently of labour, although they normally run for similar durations.

Yes, Article 127 specifically included in the Legal Labour contract document (English/ Arabic one), yes , duration of (2) years is mentioned in the Official contract that I cannot join a competitor company.Actually sir I plan not to renew my contract to my present employer and then go back to my country for 1 month, then I'll go back here in dubai as visit visa to find new employer.

My Questions are:2. Is Article 127 not automatically ban an employee?Or it should be with the request of the employer and proved to the court about his alligations before the ban is empose to the employee?Unlike the 6 months ban from the labour if you cancell a contract, which is the Ministry of Labour automatically emposed even without the employer request.

Exactly, Article 127 has to be called for by the employer (in your case), the BIG downside is that all they have to do is call the police and lay a charge against you, the courts will then follow the case. If you are found guilty you can be held personally liable for the loss of earnings by the company! As you are aware in the contracting and construction industry this could literally be millions of Dirhams! As the clause is specifically included in the contract the chances are that court proceedings may go against you. I’m also certain that before you leave your current employer will ask that you sign a non-disclosure agreement - just to make certain that you are aware of the consequences. The article 127 is not a labour ban, but a clause that prohibits you from working for direct competitors of the company.

Am I correct Sir?3. Is that mean when I come back here in Dubai from my country the ministry of labour will not be a problem for me having a labour card, if I get a new employer? as long as my present company dont know?

No, it has nothing to do with the new employer knowing or not knowing; when you apply for labour approval is goes through the Department of Labours computer system. The 6 month ban is in the computer, this means that if anyone tries to apply for a labour card or labour approval for you before the 6 months is up, the system will not allow it! This means that you can enter Dubai again after a month or even a few days on a visit visa, but cannot have a labour card processed in your name for 6 months from the date that the previous card was cancelled.

4. I'm just Curios sir, if ever the employer proved to the court that the employee is positive against article 127. What are the punishment.

See above, it can be a mixture of a jail sentence, a large fine, an amount for damages awarded against you by the courts as well as permanent black listing (ban)!!!! Be very careful, especially if your current employer is well known and has good resources!

bong suniga · Jan 26, 2009

Thank you again dxbsoul.

1. What is the exact meaning of direct competitor?What if I work as a civil engineer in construction business in my next employer the same as my present employer, but I dont affect there bussiness because there client and my client are different, hence we are both in the construction business, Ofcourse Sir there lost will not be my fault in any case,

2. Will I still be subjected in article 127?

3. What if they didnt let me sign a non-disclosure agreement, Is the article 127 still valid ?

4. What are the things that I need to take from my current employer before I leave and after my notice of non-renewal letter?

5. Thus non-competitor means the same business, the same position, the same client, the same subcontractor? what if the same business but different position?

Thanks again SIR, for patiently responding to my questions...THANK YOU

dbxsoul · Jan 26, 2009

bong suniga wrote:Thank you again dxbsoul.

1. What is the exact meaning of direct competitor?What if I work as a civil engineer in construction business in my next employer the same as my present employer, but I dont affect there bussiness because there client and my client are different, hence we are both in the construction business, Ofcourse Sir there lost will not be my fault in any case,

The law in the UAE is very open ended when it comes to definitions, the law is written in Arabic and then translated to English; as such certain nuances in the law may be changed or misinterpreted. My understanding is that Sharia Law is applied in a holistic fashion, an so the law does not have to be specific as it is in “western” terms, its about interpretation according to the circumstances. So in you situation it may mean if you current employer were to loose business loose financially through any actions that you may have initiated either intentionally or even un-intentionally; as long as the old employer can make a reasonable case the courts and police would be forced to look at it.

2. Will I still be subjected in article 127?

Yes the Article 127 that is in your current Labour Contract will remain in effect and can be invoked by you old employer for the duration specified – 2 years.

3. What if they didnt let me sign a non-disclosure agreement, Is the article 127 still valid ?

Yes, it will remain in effect. They may only ask you to sign as a reminder that you are legally bound to the terms in your contract. They may simply tell you that you are still bound by the terms of 127, or may not even inform you at all! It is entirely at their discretion, the fact that it is in your contract and that you signed is legal enough for it to be implemented.

4. What are the things that I need to take from my current employer before I leave and after my notice of non-renewal letter?

MMMMMMM, difficult. Your personal belongings; you may not take any company contact information with you as this would be in direct violation of Article 127 and reason enough for them to pursue the clause of they found such information in your position. Such information would include business contacts, price or costing details, architectural details or files, company policies or procedural information, current tender information etc. You may ask for the return of your qualification if the original documents are kept with the company.

5. Thus non-competitor means the same business, the same position, the same client, the same subcontractor? what if the same business but different position?

Already explained – it depends how the law is interpreted and whether a claim could be substantiated by the employer. Having worked as an employer of people I can tell you how easy it actually would be to find or even manufacture incriminating evidence if I were wanting to specifically get even with someone (not that I have, but how easy it actually is to do!) .....

Thanks again SIR, for patiently responding to my questions...THANK YOU

chrismorgan36 · Feb 01, 2009

Hi,

I was made redundant by my company in Dubai (due to the economic slowdown) and they are refusing to give me an NOC. I had been working for them for 8 months and obviously they are now about to cancel my visa. Can someone help me with the following questions:

1. I sponsor my wife (who is working in Dubai now as well). Can she just sponsor me now instead? Will this mean I still incur a 6 month ban? [I am guessing the answer to the latter is unfortunately yes.]

2. As my wife is on my residency visa, are the company allowed to cancel the visa as then she will have to leave the country as well? [Again I am guessing the answer is yes.]

3. As a general question, why is there no distinction in terms of a ban between someone choosing to leave a company and someone being forced to leave a company?

Many thanks for any help offered.

dbxsoul · Feb 02, 2009

Hi,

I was made redundant by my company in Dubai (due to the economic slowdown) and they are refusing to give me an NOC. I had been working for them for 8 months and obviously they are now about to cancel my visa. Can someone help me with the following questions:

I'm sorry to say that there is nothing that you can do about this situation. Firstly the employer is under no obligation to provide the employee with a NOC, this is not an entitlement irrespective of the duration of service that you may have with the employer. Secondly, as you have only worked 8 months for your current employer a NOC (if you could get one) would still not be sufficient to grant you a transfer - you need to work a minimum of 1 full year with your current employer and still then have a NOC to be able to transfer.

1. I sponsor my wife (who is working in Dubai now as well). Can she just sponsor me now instead? Will this mean I still incur a 6 month ban? [I am guessing the answer to the latter is unfortunately yes.]

No, a woman may not sponsor a male (for residency), unless she is a doctor or a teacher -plus a few other very high level positions.

2. As my wife is on my residency visa, are the company allowed to cancel the visa as then she will have to leave the country as well? [Again I am guessing the answer is yes.]

Correct, when your residency is cancelled hers will be as well. She can however move across to her employer’s residency sponsorship, this would enable her to remain in and continue working in the country

3. As a general question, why is there no distinction in terms of a ban between someone choosing to leave a company and someone being forced to leave a company?

mmmmm.. To a degree there is, normally a person being forced to leave a company for example as he is been found guilty of a criminal act will receive a permanent ban and never be allowed to re-enter the country.

In the past they had two ban, labour and immigration, where you would be banned from working for 6 or 12 months, in addition you would be prevented from re-entering the country for a period of 6 or 12 months. There were exclusions and conditions as well as systems in place to circumvent most of these issues. The ban then was also implemented at the request of the employer, and not mandated by government as the current situation is. The current ban system is in effect a much more relaxed one!

You may well find that in the coming months the labour department revises their current ban system to cater for people who have been retrenched. I have my doubts though.

You can however if you feel your situation is different, unique or unfair take the matter to the Labour Department, as they do have the power to uplift the mandatory ban if the situation warrants it.

Many thanks for any help offered.

Ariez · Feb 08, 2009

Hi, I am working in a private company for almost 4 years now. I want to know if I resign the company and they refuse to give an NOC will I get a labour ban?
Another thing, is the company allowed to reduce a salary without giving a written letter? and knowing that it is 35% of the total package? Please advise.

CaptainCaveman · Feb 09, 2009

Quick question

I'm currently working in Media City and have done for just over a year, my company is terminating my unlimited contract due to cost cutting. Am i right in assuming that as i have completed more than 1year that i will not have a ban and that i do not need an NOC to work for another company. I'm going with a company representative next week to the Oman border to cancel my visa, will i be able to get a 60/90 day visa as the company i'm going to work for do not apply for the residency visa until you have worked for them for 3 months.

dbxsoul · Feb 09, 2009

Ariez wrote:Hi, I am working in a private company for almost 4 years now. I want to know if I resign the company and they refuse to give an NOC will I get a labour ban?

They are entitled to refuse to give you a NOC. NOC is not a right to employees, but is given at the discretion of the employer.

If you do not have a NOC you will be banned.

Another thing, is the company allowed to reduce a salary without giving a written letter? and knowing that it is 35% of the total package? Please advise.

No they are not; this should be reason enough to go to the labour department. I would however need to know more about the actual contract to give you more advice. Type of contract, exact salary and benefits as per the contract, any increases that you may have received since the contract was signed etc..

dbxsoul · Feb 09, 2009

Quick question

I'm currently working in Media City and have done for just over a year, my company is terminating my unlimited contract due to cost cutting. Am i right in assuming that as i have completed more than 1year that i will not have a ban and that i do not need an NOC to work for another company.

Media City is a Free Zone and as such not subject to the same regulations and conditions as the UAE Labour Law. In most cases moving between sponsors in the SAME Free Zone will not incur a ban, there is also (normally) no minimum duration of service requirement within Free Zones.

I would however, suggest that you visit the Media City Free Zone Authority offices and pose the question to them. Each Free Zone uses slightly different variations of their “Labour Laws” so what is standard practice in one FZ may not be in another.

I'm going with a company representative next week to the Oman border to cancel my visa, will i be able to get a 60/90 day visa as the company i'm going to work for do not apply for the residency visa until you have worked for them for 3 months.

This is illegal! The company has the obligation to provide you with a labour card within 30 days after taking “office’ they simply use these 3 months as an unofficial probation period!

It does depend where the new company is, but if they are not located in the Free Zone then you would be subject to the UAE Labour Laws and will still have a mandatory 3 to 6 month probation period after you have served your “unofficial” probation with the company. This means in theory they could terminate your services after 9 months of you working for them and you would not be able to do a thing about it, neither would you be eligible for severance or any form of gratuity; in addition to this you would not have legally even accumulated any leave!!!

And.... to make their offer look even more enticing, as you would be working illegally, you could be subject to a fine, imprisonment and deportation... or all three – for working illegally.

Ariez · Feb 09, 2009

dbxsoul wrote:
Ariez wrote:Hi, I am working in a private company for almost 4 years now. I want to know if I resign the company and they refuse to give an NOC will I get a labour ban?

They are entitled to refuse to give you a NOC. NOC is not a right to employees, but is given at the discretion of the employer.

If you do not have a NOC you will be banned.

Another thing, is the company allowed to reduce a salary without giving a written letter? and knowing that it is 35% of the total package? Please advise.

No they are not; this should be reason enough to go to the labour department. I would however need to know more about the actual contract to give you more advice. Type of contract, exact salary and benefits as per the contract, any increases that you may have received since the contract was signed etc..

My contract is unlimited and salary mentioned is 7,500, yearly ticket as normal because I renewed my contract last June 2008, in October 2008 they increased it to 10,000AED with a written advise but my contract is still the same and not revised.
Thanks.

dbxsoul · Feb 09, 2009

I would honestly advise that you go to the department of labour; if this wage cut has been happening for more than a month then you will have a stronger case. The only way that you could possibly try to get out of your contract at the moment (without the ban), it to prove "non-payment" by the employer.

You will need to take all your documents with you, the increase letter, copies of some bank statements to prove the salary etc.

The Labour Department may then determine whether you have a case to be released from your contract without the ban, or not ....

Ariez · Feb 09, 2009

Thanks a lot for the advise. But I served more than 3 years from the company, how come i will still get a ban?

dbxsoul · Feb 09, 2009

This is a very odd and grey area according to the law.

If you had simply finished your initial 3 year period then there would be no ban. But as the contract has extended you could again be eligible to be banned! I know this sounds very odd, but the law is not very clear on this. As you are aware gratuity etc is based on a 5 year contract cycle, but residency is only valid for three years, so they normally run the labour contract (initial) for a period of 3 years to coincide with the residency renewal.

The best thing in your case is to get a letter from the Labour department confirming this. Remember if you do go to the labour department you may not always get the same person you spoke to previously ....

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