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In the new year comes a new set of rules in the UAE Labour contract. Part of the changes state that there will be no 6-months ban provided that there is a mutual agreement between the employer and the employee to terminate the contract.

In the old work contract set-up, an employee will automatically get a 6 months ban when he/she breaks contract. One such example of ‘breaking the contract’ would be resigning without completing the 2 years of service. The 6-months ban means that you are not allowed to work in another UAE company for 6 months.

UAE Ministry of Labour: The 6 Months Ban Can be Terminated

In the new UAE labour rules, however, the 6-months ban can be cancelled ONLY if both the employer and employee are in mutual agreement and the work permit and employment are terminated. The employee can then find a new job or join another company immediately – so as long as both the parties fulfill the conditions agreed upon in the labour contract signed between them.

This is good news to UAE workers as this gives us more flexibility and the set-up aims to retain employees.

Note: Please be advised that this new rule does NOT apply to workers under level IV and V – employees with no educational degrees & special skills – who have not completed six months with the first establishment.

Related Post: New UAE Labour Law Rules Take Effect on January 2016

News Sources:

For more details, you can contact the UAE Ministry of Labour and go through the law here – UAE Labour Law | MOL

Please be advised that this applies to companies registered under the UAE Ministry of Labour. If you work for a freezone company, you can refer to your specific Freezone Headquarters office for specific updates. Here’s a list of Freezone areas in the UAE.

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