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Why you should not resign at the request of employer?

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khalidkhanblog

In last month I met three clients who were actually terminated from the company but asked by the management to give resignation instead of letting the company give them a termination letter and in each case, I told the client not to give resignation but to allow the company to terminate them.

What would you do if your employer will tell you that since you have worked so long with us we don't want to terminate your services so you better resign yourself. I would resign if I understand my performance is not good but what if my performance is very good and they don't have the reason to terminate me?

If a company wants to avoid paying compensation to the employee while removing him what they would do? They would not terminate him or her but will politely ask the employee to resign to avoid paying him compensation for unfair dismissal.

Do you know why the companies are asking employees to resign and are reluctant to terminate him? I will explain it to you with the help of Article 111.

Article 111 (a), (b) and (c) says as follows:
a- If the employer terminates the indefinite labour contract within the first three month as of the start of work, the worker shall not be entitled to any compensation, unless the termination is an arbitrary dismissal in accordance with any of the provisions of Articles 104 and 105 of this Law and in this case the worker shall be entitled to a compensation equivalent to a one month wage.
b- If the employer terminates the indefinite labour contract for no reason or for an illegitimate reason following the expiry of three month as of the date of start of work, he shall undertake to compensate the worker with a compensation equivalent to the wage of two working days per each month of service, with a minimum of one month wage and a maximum of twelve months wage.
c- If the employer terminates the definite labour contract for no reason or for an illegitimate reason, he shall undertake to compensate the worker with a compensation equivalent to the wage of the remaining period of the labour contract, unless the parties agree on a lesser compensation provided the compensation agreed upon does not fall below the wage of three months or the wage for the remaining period whichever is lesser.

I hope after reading the above Article its clear to you that why your employer is so nicely asking you to resign and not terminating you. They know if they terminate you without a reason then they have to pay compensation for unfair dismissal so what's better than asking employee to resign.

If your company tries to do the same with you don't resign let them terminate you otherwise you will lose your right to claim compensation.[/i][/i]

XTang

Exactly.  Very good post.

In general, in pretty much every GCC country, if you submit your resignation, the problem is yours and the most you can get is your end of service.  Never resign if the employer tells you to - always ask for termination as then, you get paid extra.

The only time you should ever resign is if the employer has cause i.e. your performance is not good and you have been warned verbally & in writing as per labor law, you breached discipline or violated any provisions of the labor law which the employer can prove.  In that case, do resign and end the employment amicably.

khalidkhanblog

Thanks a lot for the appreciation.

Man In Whites

Thank you for this good information. But practically what I understand, when an employer has to expel you, they will get the reason, it is never that difficult to prove your under performance or breech of labor laws. Or they just might start building pressure on you by other means. How one can stand that?

XTang

If they want to get rid of you, there is a process to be followed ie verbal and written warnings. In general employers don't follow the evidentiary trail properly. It is quite onerous especially if you don't have clear cause.

khalidkhanblog

If your performance is not good then employer has to give a notice followed by other notices warning you about your performance and asking to improve it (which should also fall under a certain time).

If you fail to improve your performance after repeated notices then employer can fire you but even those notices can't be given like three notices in three days.

Also, an employee can always prove that these notices were served without cause by his performance record,sales, letter of appreciation etc.

Zteve

In my own case, my HR called me and advise to look for another job reason being that the company is moving to Dubai and they cannot afford to take me along with them. I have worked for this company for 2 years and few months. What should I do? Ask them to terminate my contract with the intention of getting compensation? Does indemnity pay apply here? I have eight months left in my contract. Kindly advise please

XTang

Yes ask them to terminate you "without cause".  Indemnity applies no matter what.

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