59A7D41EB44EABC4F2C2B68D88211BF4 UAE INSIDER - BUSINESS | LAW | CAREERS | INVESTMENT: December 2010

Thursday, December 30, 2010

Canadians to stay outside the country for one month for new UAE visit visa

Canadians need to stay outside the country for one month before they can apply for new visit visas in a stipulation similar to one set out for people of certain nationalities who are required to have a visa in advance to enter the UAE, official said yesterday.
Officials said the same visa rules that are applied to people of certain other nationalities who are required to be in possession of a visa before entering the UAE will apply to Canadians as well.An official from the Ministry of Interior said that the new rules will take effect from January 2.
Canadians who hold regular passports and intend to travel to the UAE need to apply for visa in advance for visit, tourism and business purposes, the official said.
The official added that Canadians seeking to enter the UAE on a visit visa could get their papers processed through a sponsor who could either be a person or a company.
Transit visa

The official said that those Canadians going to the UAE as tourists could apply for tourist visas through hotels or travel agencies in the UAE.He said the same rules that were applicable to people of nationalities requiring an advance visa to enter the UAE would henceforth apply to Canadians, who were earlier exempted from visa rules.
Canadians transiting through the UAE will be able to obtain a transit visa at the airport upon presentation of travel documents indicating that they will leave the UAE within 96 hours to their onward destination, the official said.
"In the past a Canadian with regular passport could enter the UAE after obtaining visa upon arrival. Now the rules have changed," he added.
The UAE Embassy noted that a "short-term visa" will cost C$250 and would be valid for 30 days, a long-term visa for three months would cost C$500 and a six-month multiple-entry visa will set travelers back C$1,000.
He added that Canadians with diplomatic and special passports are required to obtain their UAE visa from the UAE Embassy in Canada before their travel.The official said Canadians visiting the UAE would also have to ensure that their passports were valid for at least six months beyond the date of entry into the country.

New UAE visa charges hit Canadian travellers

Canada's Conservative government is under fire from Liberal Opposition critics on home soil after the UAE Embassy in Ottawa announced new visa charges of up to C$1,000 (Dh3,660) for Canadian visitors to the UAE.
Formerly free for Canadians, UAE visas must now be paid and applied for in writing to the UAE Embassy in Ottawa two weeks in advance of entering the UAE.The new paid visas are mandatory effective January 2.

 
The new visa regulations were first announced in early November, as Canadian troops were vacating Camp Mirage.
Dubai expelled hundreds of Canadian troops from a semi-secret military base on its soil earlier this fall. The Canadian military had enjoyed rent-free access to Camp Mirage for the past nine years. The base served as a key transit point for troops shuttling to and from Afghanistan. Relocating to a new base may cost more than $300 million.
 At the time the U.A.E.'s ambassador to Canada, Mohamed Abdulla Al Ghafli, told the Canadian Press that the decision to institute visa fees was "based on a policy of reciprocity." Weeks later, the U.A.E.'s economic minister, Sultan Al Mansouri, said that Canada's relationship with his country had been "destroyed" by the airline dispute and by remarks made by Canadian officials.
"There have been some statements made from the Canadian side, which were sometimes very fiery statements," Al Mansouri was quoted as saying in Abu Dhabi's The National newspaper. "This is not the way relationships between two countries are handled." In late November, then transport minister John Baird defended how Ottawa handled the landing-rights negotiations, arguing that "literally tens of thousands of jobs" were at risk at home.

Canadian Prime Minister Stephen Harper is being accused of damaging formerly strong ties with an important Middle East ally by refusing additional landing rights for the UAE's two major airlines, Emirates and Etihad.The airlines asked for more than the current six flights a week to Canada but were rejected.In a previous statement, Abdullah Al Gafi, UAE Ambassador to Canada, said failure to reach a new agreement "undoubtedly affects the bilateral statement".

Canadians travel to United Arab Emirates to pay stiff visa fees from January 2, 2011

Canadians wishing to travel to the United Arab Emirates will have to pay stiff visa fees of up to C$1,000, C$250 for a 30-day visa,C $500 for a three-month visa and a whoppingC $1,000 for a six-month, multiple-entry visa . Canada had been one of more than 30 countries whose citizens could travel to the U.A.E. on a free one-month visa. The new fees, which are unusually high by international standards, appear to represent the latest episode in a diplomatic row over landing rights for U.A.E.-based airlines in Canada. The new paid visas are mandatory effective January 2.
"The complete visa application needs to be sent to the UAE Embassy 15 working days before the departure date," the embassy said in its requirements, posted on Tuesday.
The UAE Embassy noted that a "short-term visa" will cost C$250 and would be valid for 30 days, a long-term visa for three months would cost C$500 and a six-month multiple-entry visa will set travelers back C$1,000.
Requiring an approved UAE visa in advance of arrival is a radical departure from the time when Canadians were granted visas upon arrival at Dubai and Abu Dhabi international airports.The new rules won't necessarily affect a large portion of the roughly 25,000 Canadians who live and work in the UAE because many already possess residence permits.

Sunday, December 26, 2010

National ID card deadline In UAE extended to June 30, 2011

Emirates ID card deadline extended, Dr Ali Al Khoury, Director-General of Eida, has urged white-collared expats to not wait until their visa renewal, cautioning that the government will soon link the ID card with a string of services in the country, which may not be accessible without the ID.
Unlike blue-collared workers, professionals have to perform many transactions with the government and without an ID card, they will not be able to access many services, Al Khoury has been quoted as saying by Gulf News. "So they should not delay the registration," he added. The extension in the deadline will nevertheless bring relief to applicants, some of whom were seen last week camping outside ID and typing centers in a last-ditch effort to meet the December 31 deadline.
As reported by this website earlier, the authorities had announced that residents who would not have met the National ID card deadline of December 31, 2010, were not to be denied any government services as no penalties were to be imposed.
Eida announced yesterday that 1.5 million people had registered for the ID in 2010, adding that it would do its utmost to double these numbers in the upcoming period as per the new registration plan and the relevant initiatives. Emiratis have an additional six months to register for their identity cards following an extension of the original December 31 deadline.
The Emirates Identity Authority (EIDA) said that Emiratis now have until June 30 to register for their ID cards. Expatriates also do not have to rush for it to register; whenever they apply for or renew a residency visa, the registration for the ID card will take place simultaneously.
Residents can apply for their cards at any of the 25 registrations centers countrywide that are attached to or near to the preventative medicine centers that conduct medical checkups as part of the visa application process.
According to a statement by EIDA, this is part of their 2010-2013 strategy to link visa issuance and renewal with ID card registration across the UAE. This is currently the case in Umm al Quwain only.EIDA said that more than 1.5 million people registered for their national ID cards in 2010.

Tuesday, December 21, 2010

One-year ban for breach of Limited contract- Ministry of Labour UAE

The new regulations concerning the abolition of the six-month work ban and the removal of the need for a no-objection certificate created confusion and misunderstanding among the employees and has also resulted in workers in some sectors resigning from their jobs. The Ministry of Labour  clarified very clearly that “Workers who are contracted on fixed-term contracts cannot breach the contract and resign on grounds that they have completed a period of two years. If those workers are called to cancel their labour cards they will be subjected to a one-year ban according to terms of the contract. But if the contract is of an indefinite duration, and two years have been completed with the sponsor, they have the right to change their job without objection.”The Ministry of Labour, on Friday, issued regulations allowing workers who finish their contracts to obtain new work permits without undergoing the six-month work ban, and allowing them to move to other firms without the employer's approval from January 1, 2011.
A worker with an expired contract can obtain a new work permit and shift to another employer without the passing of the currently legitimate six-month period and consent of his sponsor, according to the new resolution issued by the Minister of Labour Saqr Gobash.
The new regulations on conditions and criteria of issuing new work permit for a worker after the expiry of his service contract and transfer of sponsorship will take effect as of January 1, 2011 in implementation of the cabinet resolution No 25 of 2010 regarding internal work permit at the Ministry of Labour.
Once operational, the new regulations will replace the current formalities of transfer of sponsorship for expatriate workers.
The resolution says that the new employment permit will only be granted to the worker after the end of his work relationship with his employer without consideration of the legitimate six month period which is usually calculated after the cancellation of the worker's labour card.

Monday, December 20, 2010

UAE Labor Law: Non-Compete Clauses Void if Employer Breaches Contract

Under the UAE’s unified labor framework, an employer cannot enforce a non-competition ban against a former employee if the employer failed to meet their own contractual or legal obligations.

The Ministry of Human Resources and Emiratisation (MoHRE) maintains that non-compete restrictions exist strictly to safeguard an employer’s lawful business interests—not to arbitrarily restrict a worker's mobility. If an employer violates the employment agreement (such as through arbitrary dismissal or failure to pay wages), any post-termination restrictions are automatically rendered invalid.

The Legal Foundation: Article 10 & Article 12

The explicit rules governing non-compete agreements are strictly regulated under two primary legislative provisions: Article 10 of Federal Decree-Law No. 33 of 2021 (the UAE Labor Law) and Article 12 of Cabinet Resolution No. 1 of 2022 (the Executive Regulations).

1. Mandatory Criteria for Enforceability

According to Article 10(1) of the Labor Law, a non-compete clause cannot be applied universally to all job categories. For the clause to hold any legal weight, it must simultaneously satisfy four strict statutory elements:

  • Nature of the Work (Access): The restriction is valid only if the employee’s specific role granted them direct access to sensitive company trade secrets or a direct relationship with the company’s clients.

  • Geographical Scope: The restriction must be reasonable and limited to a specific geographic territory where the employer’s actual business interest is actively disrupted.

  • Time Duration (The 2-Year Cap): The duration of the non-compete restriction cannot exceed a maximum of two years from the contract's expiration date.

  • Explicit Parameters: The clause must detail the exact type of work being restricted to protect a legitimate business interest.

Furthermore, Article 10(2) explicitly mandates that these restrictions do not apply to any employee under the age of 21 at the time the contract is executed.

When a Non-Compete is Automatically Waived

Even if a valid non-compete clause is written into a contract, Article 12 of the Executive Regulations outlines specific conditions where the clause is legally canceled or exempted:

  • Employer Breach (Article 12(4)): The clause is automatically void if the contract's termination is attributed to the employer’s failure to fulfill their legal or contractual obligations.

  • Probation Period Exit (Article 12(2)(c)): If the employment relationship is terminated during the employee's probationary period, the non-compete clause does not apply, regardless of which party initiated the exit.

  • Written Agreement (Article 12(2)(a)): Both parties mutually agree in writing to cancel or waive the clause upon or after termination.

  • The Financial Buyout (Article 12(2)(b)): The employee or their new employer compensates the previous employer with an amount not exceeding three months of the worker's last gross salary, provided the old employer gives written consent.

Legal Remedy and the One-Year Limitation

If a dispute arises over a breach, the legal recourse is strictly financial. UAE labor courts do not issue injunctions to physically block a worker from taking a job.

Instead, under Article 10(3) of the Labor Law, the burden of proof rests entirely on the employer, who must take the matter to court and prove that the employee's new role has caused direct, quantifiable financial harm to the business. Speculative or presumed harm is routinely dismissed.

Furthermore, employers face a strict statute of limitations under Article 10(4): a claim regarding a breach of a non-compete clause will not be considered by the court if one year has passed from the exact date the employer first discovered the violation.


New regulations in UAE Labour Law aim to liberalise labour market

The aim behind the new labour law that will come into effect on January 1, is to lessen the control of employers over employees and liberalise the labour market, a top government official told .The source clarified that the new law completely scraps the "no objection certificate" (NOC).
"The new laws allow an employee to transfer his sponsorship after the contract with his current employer expires, but the employee must inform his sponsor that he will not be renewing his contract 30 days before its expiry," he added.
"The employee will be granted a period of 30 days once his contract expires to find a new job and sponsor. This period is basically given to the employee to complete procedures such as the issuance of a new visa in accordance with the Ministry of Interior's procedures and signing the contract with the new sponsor. However, if the period expires and the employee's paperwork is not completed, he will be considered illegal," added the source.Once the employer and employee's pact was regulated by a contract, the ministry would not be able to interfere in matters pertaining to both parties in accordance with Law number 129 in regard to regulating the relationship between both parties.
"When the contract expires, the employee is granted a special permit by the ministries of labour and interior, allowing him to stay in the country for 30 days to complete paperwork and finalise procedures for the new work visa under the new job and employer," the government official said.
Under the new system, if an employee completed the two-year working period, the employer had no right to force an employee to stay on the job and would no longer face a six-month ban, since the new system scrapped the NOC.
Humaid Bin Deemas, Acting Director-General of the Ministry of Labour, told once a job contract expired or was legally terminated, the Labour Ministry would have the authority to allow workers to take up new jobs without the consent of former employers or the so-called NOC.
"Workers, skilled and unskilled, who end their job contracts legally and complete at least two years of service, will get a labour permit outright," he said.Previously, these workers had to complete at least three years of service with their previous employers and had to obtain an NOC letter.Professional and skilled workers in the first three categories according to the Uniform Gulf Occupational Classification would also be exempt from the six-month ban.
He estimated these three categories (the first category with university or post graduate degrees, the second with less than university degrees and the third category including skilled workers with high school degrees) included 800,000 workers.
Bin Deemas said even for unskilled and semi-skilled workers, companies would lose the right to stop them from getting other jobs if the firm failed to honour its legal or contractual obligations, for example, by not paying salaries for 60 days and not offering proper accommodation. Workers, he said, could also take up new jobs if the employer stopped the business for economic or technical reasons and these workers reported the closure to the Labour Ministry within 60 days.
Bin Deemas said the UAE as determined to protect the rights and welfare of the workers as well as their employers "but these rights and benefits will be fulfilled in keeping with the law. It is not the employer's right to approve or disapprove switching of jobs. But it is his right that workers complete the job contract in the event of contracts with limited period".
Concerning fees, Bin Deemas said a resolution would be issued shortly determining a complete set of "more affordable fees".
Previously, workers had to pay job-switch fees, which were determined according to service of the worker, the category of the business among other factors and which reach up to Dh14,000.
The government official added that the goal behind the ministry's new law was to bring the labour market's level on a par with that of Germany, Canada, the US and other Western countries, as well as cancelling the employers' monopoly of the labour market. The new rules defined three cases in which the worker shall have the right to get a work permit without fulfilling the condition of working at least two years with the employer:
When joining his new job, the worker should be classified in the first, second or third professional class and that his salary should be not less than Dh12,000, Dh7,000 and Dh5,000 if he is in the first, second and third class respectively. nNon-compliance of the employer with legal and labour obligations towards the worker or in the event the worker has no role in terminating the work relationship

Deconstructing the UAE Labor Ban Exemptions: Past Regulations vs. Current Laws

When Humaid Bin Deemas, then Acting Director-General of the UAE Ministry of Labour, introduced the 2011 labor reforms, it was a massive turning point for the expatriate workforce. For the first time, "professional and skilled workers" across three specific categories were granted a pathway to bypass the automatic six-month labor ban without needing their employer’s consent, provided they met rigid salary and degree benchmarks.

Today, the modern UAE employment landscape operates under a completely modernized, contract-driven system regulated by Federal Decree-Law No. 33 of 2021 (The New UAE Labour Law).

If you are updating an old article, here is how the historic 2011 "Three Skill Categories" and "Contract Exceptions" have transformed under current legislation, mapped out completely through direct comparison points.

The Evolving Rules of UAE Job Mobility

1. Minimum Salary Thresholds

  • The 2011 Rule: To change jobs before completing a two-year contract without facing a six-month ban, workers had to meet mandatory minimum monthly salary floors based on their educational classification:

    • Category 1 (University/Post-grad Degree): Minimum salary of AED 12,000.

    • Category 2 (Diploma/Post-secondary): Minimum salary of AED 7,000.

    • Category 3 (High School Certificate): Minimum salary of AED 5,000.

  • The Modern Update: The Ministry of Human Resources and Emiratisation (MOHRE) has completely abolished these salary thresholds as a requirement to avoid a labor ban. Job mobility is no longer dictated by how much money an employee earns. The six-month ban framework has been completely eliminated for normal, compliant job transitions, meaning your salary tier has no impact on your freedom to switch companies.

2. Professional Skill Classifications

  • The 2011 Rule: Workers were divided into three straightforward categories based purely on whether they held a degree, a diploma, or a high school certificate to determine their ban immunity.

  • The Modern Update: The old three-tier structure has been replaced by a more comprehensive 9-level professional classification system aligned with international standards (ISCO). Employees in Skill Levels 1, 2, and 3 (ranging from executives and doctors to technicians and skilled clerical staff) remain completely exempt from labor restrictions when changing jobs, provided they properly serve the notice period specified in their employment contract.

3. Contract Fulfillment & Employer Control

  • The 2011 Rule: Bin Deemas clarified that while employers had no right to veto a job switch via an NOC, they did have the right to demand workers complete their limited-term contracts. Unskilled workers were structurally locked into a company for a minimum of two years before they could switch freely.

  • The Modern Update: The UAE has completely eliminated unlimited-term contracts in favor of Fixed-Term (Limited) Contracts for all private-sector employees. Crucially, workers are no longer required to complete the full multi-year duration of a contract to leave safely. Either party can legally terminate a fixed-term contract early at any time, simply by serving a contractually agreed written notice period, which must legally fall between 30 and 90 days.

4. Immediate Resignation Due to Employer Breach

  • The 2011 Rule: For lower-skilled categories, an employer lost their right to stop a worker from transferring only if they failed to pay salaries for a consecutive 60 days, or failed to provide proper accommodation, followed by a lengthy court process.

  • The Modern Update: Under Article 45 of Decree-Law No. 33 of 2021, employees can walk out instantly without giving any notice and transition to a new job if an employer fails to meet statutory duties. This includes non-payment of wages through the Wage Protection System (WPS) for more than 15 days (down from the historic 60 days) or cases of workplace harassment/assault, provided it is reported to MOHRE within 5 business days.

5. When a 1-Year Ban is Triggered Today

  • The 2011 Rule: Bans were heavily focused on a six-month standard cooling-off period for anyone who didn't hit the salary tiers or complete two full years of service.

  • The Modern Update: The historic 6-month ban is gone, but MOHRE actively enforces a strict one-year labor ban for specific contractual violations:

    • Probation Violations: If an employee resigns during their 6-month probation period to join a new UAE employer, they must provide 30 days' written notice. Failing to provide this statutory notice results in a one-year work permit ban.

    • Absconding: Simply abandoning a job or being absent without a valid reason for more than 7 consecutive days allows an employer to file a work-abandonment report, which carries an automatic one-year ban.

The modern UAE labor market has evolved away from rigid sponsorship controls toward a transparent, mutually binding contract model. For expatriate workers, career mobility is entirely protected by the law—provided contractual notice periods are respected and changes are processed through official MOHRE digital channels.

#UAELabourLaw #MOHRE #UAEDecree33 #JobTransitionUAE #DubaiJobs #ExpatLifeUAE #LabourBanExemption



Sunday, December 19, 2010

Changing Jobs Without an NOC: What the UAE’s New Labor Laws Mean for Your Career


Changing Jobs Without an NOC
DUBAIFor decades, switching jobs in the UAE felt like negotiating a high-stakes hostage situation. Employees were bound by the dreaded No Objection Certificate (NOC), a legal document that gave employers absolute power over a worker's career mobility. Refuse to sign, and an employee faced a mandatory six-month or one-year labor ban—effectively an eviction notice from the country.

But the old guard has fallen.


With the complete eradication of the NOC system and the universal transition to standardized, fixed-term contracts, the UAE has quietly executed one of the most aggressive labor market overhauls in modern history. The power dynamic hasn't just shifted; it has been entirely rewritten.


From Permission to Progress: The Role of Article 43


Under the current legal framework governed by UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, the concept of an employer "owning" a visa transfer is dead. Today, job mobility is dictated by compliance, not permission.

The mechanics of a standard resignation are anchored firmly in Article 43 of the law:

  • Symmetric Notice Periods: If an employee fulfills their contractually agreed-upon notice period—which Article 43 mandates must be a minimum of 30 days and a maximum of 90 days—the Ministry of Human Resources and Emiratisation (MOHRE) automatically clears them for a new role.

  • Equal Treatment: This notice duration must apply equally to both parties; an employer cannot legally force you to serve a longer notice period than they would give you.

"It used to be that your boss held all the cards," says one Dubai-based software engineer who recently changed roles. "Now, as long as I respect the statutory notice under Article 43, my career trajectory is entirely in my own hands. The fear factor is gone."

The Fixed-Term Safety Net & Article 53


The catalyst for this freedom is the mandatory fixed-term contract introduced under Article 8 of the Decree-Law, which completely abolished old "unlimited" contracts in the private sector. By eliminating open-ended timelines, the government has created a highly transparent playground where both sides know exactly what they are signing up for:

  • Predictable Exits: Early termination clauses protect employers from sudden walkouts while ensuring employees aren't trapped indefinitely.

  • Guaranteed Settlements (Article 53): Employers no longer have the luxury of dragging out final payments. Under Article 53 (read in conjunction with Article 42), employers are legally mandated to clear all End-of-Service Gratuities, accrued basic salaries, and outstanding leave encashments within 14 days of the contract's termination date.

The Legal Guardrails: Probation and Absconding


However, this newfound freedom isn't a license for chaos. The law fiercely protects businesses from "ghosting," establishing strict guidelines under Article 9 for the probation period:

  • Moving to a UAE Competitor: If an employee wants to resign during their probation period (capped at a maximum of 6 months) to join another employer inside the UAE, they must provide a minimum of one month’s written notice. Furthermore, the new employer may be held liable to compensate the previous company for recruitment costs.

  • Leaving the Country: Resigning during probation to leave the UAE altogether requires 14 days’ written notice.

Failing to respect these timelines or deserting a post entirely allows employers to file a valid "work abandonment" (absconding) report. Under Federal Decree-Law No. 47 of 2022, a proven case of work abandonment or unlawful probation desertion triggers a swift, mandatory one-year labor ban, barring the individual from receiving any new work permits nationwide.

The New Corporate Reality


For employers, the "Death of the NOC" means the era of relying on bureaucratic barriers to retain staff is officially over. Companies can no longer count on legal red tape to keep talent from walking across the street to a competitor.

To survive in this highly liquid market, UAE businesses are being forced to pivot from restriction to attraction. Retaining top-tier talent now requires competitive compensation, healthy corporate cultures, and clear upward mobility. In the modern UAE economy, if you don't treat your talent right, the provisions of Federal Decree-Law No. 33 will gladly help them find someone who will.


#UAELaborLaw #JobMobility #UAEOpportunities #DubaiJobs #MiddleEastBusiness #TalentAcquisition


Thursday, December 16, 2010

"UAE End of Service Gratuity (EOSG) 2025: New Calculation Rules and Contract Types"

💰 UAE End of Service Gratuity (EOSG): New Calculation Rules and Contract Types (2025 Update)

The calculation and entitlement rules for the End of Service Gratuity (EOSG) have been entirely updated under the Federal Decree-Law No. 33 of 2021 (the New UAE Labour Law), effective from February 2, 2022.

1. The Core Calculation (Article 51)

The calculation method (21 days for the first 5 years, 30 days thereafter) remains, but the maximum cap is removed, and the calculation basis is confirmed.

Old Law (Article 132)

Current Law (Article 51)

Calculation: 21 days for the first 5 years, 30 days for subsequent years. Maximum Cap: Total gratuity cannot exceed 2 years' salary.

Calculation: Same rates apply. 21 days for the first 5 years, 30 days for subsequent years. Maximum Cap: REMOVED. The total gratuity is not capped at two years' salary.

Part of the Year: Entitled to a prorated amount after one year of service. (Article 133)

Part of the Year: Confirmed. The worker is entitled to a prorated amount for the fraction of the year, provided one full year of service is completed.

Leaves Without Pay: Not included in the service period. (Article 132)

Leaves Without Pay: Confirmed. Periods of unpaid leave are excluded from the service period calculation.

2. The Calculation Basis: BASIC Salary Only

The current law explicitly confirms the calculation basis.

Old Law (Article 134)

Current Law (Article 51)

Basis: Calculated based on the last basic salary. Confusing Point: Stated allowances "shall be included in the basic salary" (which was legally disputed).

Basis: Calculated exclusively on the Basic Salary. Clarified: The law confirms that allowances (housing, transport, commission, etc.) are NOT included in the gratuity calculation.

3. Contract Type Distinction: UNLIMITED is ABOLISHED

This is the most critical change. The distinction between Unlimited and Limited contracts for EOSG calculation is GONE because the Unlimited Contract type is abolished for new/renewed contracts.

Old Law (Articles 137 & 138)

Current Law (Article 51 & 42)

Unlimited Contract Resignation: Reduced Gratuity (1/3 or 2/3 reduction based on service period).

Fixed-Term Contract Resignation: NO REDUCTION. The worker is entitled to the full gratuity regardless of the length of service (after 1 year), provided they comply with the lawful termination (notice period).

Limited Contract Resignation: Forfeiture unless service exceeded 5 years.

Forfeiture: ELIMINATED. There are no reductions or forfeitures for an employee's resignation under the new law, provided they follow the lawful notice period.

4. Forfeiture and Dismissal (Article 51 & 44)

The conditions for the worker being banned from gratuity have been streamlined and simplified.

Old Law (Article 139)

Current Law (Article 51)

Forfeiture: Worker dismissed under Article 120 (gross misconduct) OR worker voluntarily resigns without notice (unlimited contract) OR limited contract worker resigns before 5 years.

Forfeiture: The worker forfeits the entire gratuity ONLY if they are dismissed for one of the 11 specific reasons listed in Article 44 (Gross Misconduct).

Voluntary Resignation: Forfeiture is ABOLISHED for lawful resignation.

5. Death, Savings, and Pensions (Article 51)

  • Death: Confirmed. If the worker dies, the employer must pay the full gratuity to the heirs.
  • Savings/Pension Funds (Article 140 & 141): Confirmed. The worker retains the right to choose between the gratuity or any better terms offered by a savings/pension scheme, provided the scheme terms allow it.

6. Return Tickets (Not in EOSG Law)

The obligation for return tickets is NO LONGER tied to the EOSG Law but to the general conditions of the employment contract (Article 13).

  • Current Rule: The employer is responsible for the worker's return ticket to their home country upon termination of the contract, unless the worker joins a new employer in the UAE, or the worker is dismissed for gross misconduct (Article 44 reasons).