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Ban-Free Labour Market in UAE

3/1/2016

According to Ministry of Labour (MoL), a six-month labour ban will not be imposed to an employee IF the employee and employer mutually agreed to terminate their employment contract.

A new labour law comes into effect!

According to Ministry of Labour (MoL), a six-month labour ban will not be imposed to an employee IF the employee and employer mutually agreed to terminate their employment contract. With the new rule, the movement in labour market is easier and beneficial for both parties; the need of the employers to hire workers within the country & abroad and the flexibility of employees to transfer within the country is easy.

As per the new law, employee will be free from six-month ban if the below conditions are met:

Limited period contracts
  • Terms of the contract has expired and not been renewed
  • Employee and employers mutually terminate the contract, provided the worker has completed a period of six months
  • Employer initiates the termination of the employment contract
Unlimited period contracts
  • The two parties mutually terminate contract, provided worker has completed 6 months
  • One of the parties acts to terminate the contract and notifies the other party
  • The employer terminates the contract for reasons other than non-compliance by the worker”
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