When Must Employers in the UAE Provide Full and Final Payment to Resigning Employees?

When Must Employers in the UAE Provide Full and Final Payment to Resigning Employees?

Question: I intend to tender my resignation and depart from the UAE next month. What are the legal requirements for companies to provide the full and final settlement? Additionally, how soon must I leave the country after resigning

Response: Based on your inquiry, it's assumed that you are employed by a mainland company. Therefore, the regulations outlined in Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations, Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 regarding the Regulation of Employment Relations, and Federal Decree-Law No. 29 of 2021 Regarding Entry and Residence of Aliens are applicable.

As per Article 53 of the Employment Law, employers are obligated to settle all financial dues owed to employees within 14 days from the contract's expiration. These dues encompass the employee's salary and any other compensations explicitly outlined in the contract or as per relevant resolutions and established by-laws of the contract or the employing establishment.

The article specifies:

“Article 53 - Paying the Workers’ Entitlements at the End of the Contract Term

The employer shall pay to the worker, within (14) fourteen days from the end date of the contract term, his wages and all his other entitlements stipulated herein and resolutions issued for its implementation, the contract or the establishment’s by-laws.”

Additionally, Article 7 of Cabinet Resolution No. 1 of 2022 outlines the Conditions, Rules, and Procedures for Issuing, Renewing, and Cancelling Work Permits. According to Article 7(3), an employer is required to initiate the cancellation process of an employee's work permit with the Ministry of Human Resources & Emiratisation (MoHRE).

The resolution specifies the following procedures for cancelling work permits:

a. Submission of an application for cancelling the work permit through specified channels by the Ministry.
b. Completion of the necessary data and attachment of required documents.
c. Payment of fines for any delays in issuing or renewing the work permit.
d. Acknowledgment by the establishment of granting the worker all entitled entitlements.
e. Adherence to any other conditions stipulated by resolution of the Minister or their delegate.

Furthermore, Article 19 of Federal Law No. 6 of 1973 Concerning Immigration and Residence, as amended by Law 7 of 1985, Law 13 of 1996, and Federal Decree-Law No. 17 of 2017, stipulates that individuals must leave the country upon the revocation of their residency.

The article reads as follows:

"Foreigners who have obtained a residence license shall be subject to the provisions of Article 11 herein. They must leave the country upon the revocation of their residence permit or the expiration of their term."

In addition, Article 11 of Federal Decree-Law No. 29 of 2021 Regarding Entry And Residence Of Aliens outlines the repercussions for individuals whose visas or residence permits have been cancelled or have expired without renewal. It specifies that individuals who remain in the country illegally after the cancellation or expiration of their visa or residence permit will face an administrative fine for each day they continue to reside unlawfully.

"Article 11. Cancelling And Expiring Of Visa Or Residence

Any Alien whose visa or residence permit has been cancelled or whose residence has expired with the expiration of the period of the visa or residence permit, and does not initiate renewal - in cases in which this is permissible – or if he did not leave the State within the periods determined by the Executive Regulations of this Decree-Law, an administrative fine shall be imposed on him for each day in which he resides illegally in the State as of the date of the expiry of these periods, and the value of this fine shall be determined by a decision of the Council of Ministers."

However, it's essential to note that in the UAE, once your residence visa is cancelled, you are still permitted to stay in the country until the specified period mentioned in your visa cancellation document. This document is typically issued by the General Directorate of Residency & Foreigners Affairs (GDRFA) Dubai or the Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) in the UAE residency cancellation document.

According to the aforementioned legal provisions, you can continue residing in the UAE after the cancellation of your work permit and UAE residency visa. Ensure to adjust your residency status within the grace period stipulated in your UAE residency visa cancellation document.

Similarly, your employer is required by law to settle your salary and end-of-service benefits within 14 days from the date of cancellation of your work permit.

If your employer fails to fulfill their obligations and does not provide your end-of-service settlements within the specified timeframe, you have the option to file a complaint against your employer with the Ministry of Human Resources & Emiratisation (MoHRE).

News Source: Khaleej Times

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