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Posted in Uncategorized | August 27th, 2011

UAE hiring fee penalty on unlimited labor contract (with penalty condition on offer letter I signed).?

Penalty on hiring fees if resigned on an unlimited labor contract w/ offer letter penalty condition?
Hi, good afternoon.

How much is the following penalty fees in the Abu Dhabi, UAE? I got these estimated values before. Kindly add or verify if it is correct or any other additional fees.

Do I have to pay these hiring fees if I resigned with unlimited contract (ministry of labor)? Please note that as per labor contract there is no penalty but as per my signed offer letter, I have to pay my hiring fees if I resigned before 2 years. I’m currently on probation period (less than 6 months) with my new company.

1. Employment entry visa? AED 500
2. Residence visa? AED 300 Residence + AED 300 National ID
3. Working visa?
4. Labor card and permit? AED 200 each
5. Refundable bank guarantee
6. Typing costs + charges for the PRO
7. Job agency placement fee
8. Airline ticket going here.
9. Health insurance per year.
10. Any other?

Regarding UAE Labour Law all visa and work related fees have to be paid by the employer.
If an employee signs a limited contract and doesn’t fulfill the same, the employer has the right to apply for compensation up to a certain amount (NOT full hiring costs!)
This rule does NOT apply when working on an unlimited contract because under an unlimited contract you have the right to resign any time.

You don’t have to pay anything and in case of a dispute, MoL goes by their contracts only. Even for not fulfilling a limited contract the employer can’t ask for more than pay for 45 days as compensation.