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Facing labor ban under limited contract in UAE

Labor ban under limited contract means when an employee violates the provisions of the UAE labor laws or the conditions of employment as stipulated in the employment contract, the Ministry of Human Resources and Emiratization (MOHRE) may issue a ban against the employee upon receiving such complaint from the employer. Meaning, that the person is prohibited from being employed in the UAE, Dubai for the stipulated period.

The limited contract is signed between the employer(company) and employee which is bound to expire on the date of the expiry of the contract and is for a fixed term of time (usually 2 years). An employee who is employed on a Limited Contract has a responsibility to the company until his contract is valid. After the contract expires, the employee has an option to leave the company.

There are two types of ban

  • 6 months ban
  • One-year ban

Situations for facing limited contract ban 

MOHRE issues a labor ban on an employee when a request for such is put forth by the employer under any of the following conditions:

  • Nonfulfillment of limited contract: a limited contract is where the employee is hired by the employer for a specific time and requires renewal each time it expires. It can only be terminated mid-way by the employee if there is a mutual agreement between the employee and employer.
  • Absconding: If an employee absconds from work for a prescribed period of time as mentioned in labor law without informing the employer. If absconding has been reported by the employer the employee cannot work in the country for a year from the time of reporting.
  • Resignation without notice: if an employee resigns and do not serve notice, the employer could request the MOHRE for a labor ban. There are only two situations wherein an employee can resign without notice as per Section 14 of the UAE Labor Law – if the employer has failed to serve his obligation or if the employee was assaulted by the employer or his legal representatives. In limited contracts, resignation before the end of the contract is considered a breach.

Permanent ban under limited contract

The permanent ban is an application for serious labor offenses like:

  • If an employee falsified any information pertaining to the job application.
  • Disclosing any confidential information of the company. employers who require utmost confidentiality for their business would actually include a non-disclosure agreement (NDA) as an attachment to the labor contract.
  • conclusively convicted in the court of any offense pertaining to honesty, honor or public morals;
  • report to work obviously intoxicated or drugged. This is presumed to be the kind of drugs that are considered illegal in most of the countries e.g. cocaine.

Causing any assault or physical harm to any person you work with during work hours. In this case, the Police and the Department of Labor must have been notified of the incident.

Can You End Your Limited Contract Early?

Categories exempted from labor ban in UAE

If a person falls under the mentioned categories below, may not face a labor ban

  • Person Joining a government or semi-government organization may not face a ban if the relevant government authority needs the service of the person facing a labor ban.
  • The person joining a free zone company may not face a ban. Because the rules and regulations are different for free zones and they apply their own labor rules for the imposition of the ban.
  • If an employee has Completion of a limited-term contract may not face a ban if he has not committed any grave labor offense under labor law.
  • Expatriates who hold a no objection letter from the employer.

For more information about labor, ban check out Labor ban – The Official Portal of the UAE Government.

HHS lawyers and legal consultants

The intention behind imposing labor ban in UAE is that the violation of public policies must not be compromised i.e. breaking the terms and conditions of your labor contract or leaving your job without a valid reason. The ban is lifted automatically after the lapse of time specified and subsequently one is eligible to seek employment again.

The above mentioned is just a simple guide toward labor bans, this may also go through many transitions by government. if you want to have further information on labor ban then contact HHS lawyers and legal consultants files in UAE, Dubai. we are a Dubai-based law firm having vast experience in dealing with labor issues. our dedicated firm has an effective blend of experienced lawyers and young talents. Contact us for further consultation.

Hassan Humaid Al Suwaidi., LL.B. is a Senior Partner in HHS Lawyers. He has 20 years of experience dealing with high-value and complex cases. Frequently featured in local and international legal directories and commended for his ability to attain favorable outcomes for clients, Hassan has been involved in some of the largest legal settlements. A major part of his work is providing expert legal advice on UAE legislation and acting for individuals and businesses during disputes and litigation. Read more