UAE Employers Must Settle Financial Obligations Within 14 Days of Contract Expiration

 

Federal Decree-Law No. 33 of 2021 concerning the Regulation of Employment Relations, Cabinet Resolution No. 1 of 2022 implementing Federal Decree-Law No. 33 of 2021 on Employment Relations Regulation, and Federal Decree-Law No. 29 of 2021 concerning Entry and Residence of Aliens come into play when employees plan to resign in the UAE.

According to Article 53 of the Employment Law, employers must settle all financial obligations owed to employees within 14 days from the contract's expiration, including salaries and other compensations as per the contract terms or relevant resolutions.

Article 7 of Cabinet Resolution No. 1 of 2022 outlines procedures for issuing, renewing and cancelling work permits. Employers must initiate the cancellation process of an employee's work permit with the Ministry of Human Resources & Emiratisation (MoHRE) as per Article 7(3).

Cancellation procedures include submitting an application through specified channels, providing necessary data and documents, paying fines for delays, acknowledging worker entitlements and adhering to additional conditions per resolution.

Additionally, Article 19 of Federal Law No. 6 of 1973 states that individuals must leave the country upon residency revocation.

Article 11 of Federal Decree-Law No. 29 of 2021 outlines fines for individuals residing unlawfully after visa or residence permit cancellation or expiration. Despite visa cancellation, individuals can stay in the UAE until the specified period mentioned in their visa cancellation document issued by relevant authorities.

Resigning employees are entitled to receive salary and end-of-service benefits within 14 days from the date of work permit cancellation, as mandated by law.

Failure of the employer to fulfill financial obligations allows the employee to file a complaint with the Ministry of Human Resources & Emiratisation (MoHRE).

Compliance with UAE employment laws is essential during the resignation process, so it becomes important to understand obligations and timelines to ensure a smooth transition for both employers and employees.

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