Three cases in which UAE workers may join another company after their contract expires

In order to successfully transition from one job to another in your career, it is crucial to make sure that you are meeting all of your responsibilities as an employee.

The Ministry of Human Resources and Emiratization (MOHRE) of the UAE raised awareness about employee rights and three circumstances in which a worker may join a new company through a post on its official social media channels. While there may be instances in which you face a labour ban, such as if you don’t serve the required notice period, these situations are rare. The three situations are as follows:

  1. In the situation that your employment agreement is terminated and not renewed.
  2. If the worker’s employment is terminated by the employer without cause.
  3. If the agreement is cancelled during the period of the contract in accordance with Articles 42 (Termination of Employment Contracts) and 45 (Leaving Work Without Notice) of the Labor Law and its Implementing Regulations

1. If your employment contract is terminated and not renewed.

The new labour law, Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, specifies that contracts must be concluded for a specific amount of time, which does not exceed three years, as opposed to former contracts, which were classified as limited or unlimited. According to the new law, they may be extended or renewed once, twice, or more times for a lesser or equal length.

According to the MOHRE article, you may, however, join a new company if your job contract is terminated and not renewed.

2. If the employer terminates the contract without a reason pertaining to the worker.

Once your contract has expired, you are free to join another organisation if you are asked to leave your position for reasons unrelated to your work. In such a case, you are also entitled to certain rights, including getting your gratuity and end-of-service benefits, a 30-day notice of contract termination, and a ticket for your return home, if you so choose.

3. If the contract is terminated during its term in accordance with Article 42 and Article 45 of the labour law and its implementing regulations

What does Article 42 of the UAE Labour Law state?

Nine cases in which an employment contract may expire are covered by Article 42 of the UAE Labour Law.

According to the Article, an employment contract will end in any of the situations listed below:

  1. By agreement in writing between the parties.
  2. The end of the contract’s term, unless it is renewed or extended in accordance with the provisions of this clause.
  3. At the whim of either party, provided that the terms of this Decree-Law on termination of the Employment Contract and the Notice Period specified in the contract are complied with.
  4. The passing of the employer, unless the contract’s subject is related to him personally.
  5. The worker’s death or total and permanent disability, as proven by a certificate from the hospital.
  6. If the Worker is sentenced to custody for a duration of not less than three months after being found guilty by final order.
  7. The establishment’s permanent closure is in accordance with the laws in force in the UAE.
  8. In accordance with the requirements, regulations, and procedures established by the Executive Regulations and the legislation in force in the UAE, if the employer goes bankrupt, becomes insolvent, or is unable to continue in business for any economic or exceptional reasons.
  9. If, for any cause beyond the employer’s control, the employee does not satisfy the requirements for renewal of the work permit.

What does Article 45 of the UAE Labour Law state?

Four circumstances are listed in Article 45 of the UAE Labour Law that allows a person to leave their job without giving notice and maintain all of their benefits until their employment is over. Examples include instances where the employer disobeys contractual or legal responsibilities, when the employee is the victim of violence or harassment, or when the workplace poses a grave risk to the employee’s health and well-being. Go here for a thorough explanation of this section of UAE labour law.

You must submit a notice to your employer advising them that none of the circumstances described in Article 45 apply to you. According to Article 43 of the UAE Labour Law, a full-time employee who wishes to quit their position must serve a notice period that might range from 30 to 90 days. The amount of notice you must provide your employer will be outlined in your employment agreement

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