KNOW THE LAW: Possible one-year employment ban for individuals who terminate limited period contracts in UAE

An employee who has signed up for a limited period of contract may not be able to terminate it until its expiry to avoid any possible employment ban of one year.

Those who are employed on a six-month probation period by a mainland company based in the UAE are covered under the provisions of Federal Law No. 8 of 1980 (Employment Law) and Ministerial Decree No. 1,094 of 2016.

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Article 128 of the employment law states, if a “ non-national employee leaves his work without a valid reason before the expiry of a contract for a limited period, he may not, even with the employer’s consent, take up other employment for one year from the date on which he left his work. It shall not be lawful for any other employer who is aware of the fact to recruit such employee or keep him in his service before the expiry of such period.”

An employer and the employee may mutually agree to terminate a limited period of the employment contract after the completion of six months.

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