POLICY & PRECEDURE

Department Human Resources

Subject Employment Contract Discontinuance Policy

Reference
Issue Date March 2021 Revision Date June 2021
Version 1.0 Reference

Name Position Signature

Written By
Reviewed By

Approved By

Employment Contract
Discontinuance Policy
POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

Purpose

The policy sets out the entitlement for both, Amrita Medical Center LLC (AMC) and the employee in
case of separation by reason of their (voluntary) resignation or retirement or termination

Policy

An employee’s service shall end for any of the following reasons

 Resignation
 Attaining retirement age
 Death
 Medical unfitness
 Unsatisfactory or Insignificant performance
 Termination of service by virtue of an administrative disciplinary decision
 Termination of service by virtue as a result of a court ruling
 Invalidity of nationality
 Non-renewal or termination of contract
 Absence from work without acceptable reason
 Restructuring
 Replacement, pursuant to the policy of nationalization of jobs

Employment contract may be terminated, by AMC or the employee according to the regulations set
by UAE Labour Law

Notice of resignation: Employees are encouraged to provide One (1) Month notice (Applicable to
Non-Clinical AMC Staff) and Three (3) Months notice (Applicable to Clinical AMC Staff) to facilitate a
smooth transition out of the organization. If an employee provides less notice than requested, the
employer may deem the individual to be ineligible for rehire depending on the circumstances
regarding the notice given. This is applicable to both, Limited & Unlimited contracts.

The contract of employment shall continue to be valid throughout the period of notice and will be
deemed to have expired at the end of the notice period.

If employee is serving the probationary period, as per the UAE Labour Law (Up to 6 months), a notice
period of One (1) Month must be served depending on the time period served by the concerned
Employee within AMC. In some cases, an exemption to serve the notice period, maybe given to the
Employee. AMC may compensate an equivalent to the Employee's contracted notice period, and
agree to end the services of the employee with an immediate effect.

AMC Employee may expire his/her Labour contract without serving a notice period as per Article 121
in the UAE Federal Law, UAE Labor Law and its Amendments

Resignation Notice Form

POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

All resignations must be confirmed in writing. Employees may wish to complete the Employee
Resignation Form provided by the company for this purpose or may submit other written notice that
must include the reason for leaving and the effective date.

Employees who verbally resign will receive a Confirmation of Resignation notice within 24 hours;
applicable only upon the submission of a Form – Resignation Notice completed and signed by the
Head of Department

Resignation for failure to report to work

Employees who fail to report to work for seven (7) consecutive days without properly communicating
to their supervisor or manager the reasons for their absence will be viewed as voluntarily resigning
their employment as of the seventh day

Resignation Withdrawal

Employees will not be allowed to rescind a resignation, whether given verbally or in writing, once the
employer has confirmed the resignation and an exit interview has been concluded and processed.
Employees who wish to discuss concerns about their continued employment before making a final
decision to resign are encouraged to do so consistent with the AMC’s retention program

Eligibility for Rehire

Employees who resign in good standing under this policy and whose documented performance is
above average under AMC’s performance management system will be eligible for reemployment.
Former employees will be considered for open positions along with all other candidates. Former
employees who apply for reemployment after Three (3) months will be treated as new employees.

Exit Interview

Resigning employees will be scheduled for an exit meeting to ensure that all tools and equipment are
returned and to provide an opportunity to discuss any questions or concerns related to employment
with AMC. Employees, who fail to return any of AMC’s property, will be subject to legal proceedings
on behalf of AMC

Forwarding address and EOS (End of Service)

Departing employees will be asked to confirm their forwarding address to ensure that benefits are
received in a timely manner. Final pay must be received in person only, unless distinct otherwise by
court.
POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

Termination

Employment contract can be terminated by AMC provided that the provisions of the law are observed

AMC may dismiss an employee without notice as per Article 120 in the UAE Federal Law, UAE Labor
Law and its Amendments

AMC may not terminate the service of an employee for health deficiency before he/she avails himself
of the leaves lawfully due to him. Any agreement to the contrary is deemed null and void even if it is
made before this Law comes into operation.

Breach of Contract

If an employee wishes to terminate the employment contract with the AMC, they must respect and
work by the terms of the contract agreed upon. If any of the terms is not to be followed or respected
and/or adhered to, it may be deemed a breach of contract

Post Contract Expiration

Once the employment contract is terminated and work visa is cancelled, the terminated employee is
granted a 30-day grace period from the date of cancellation, where he/she can either obtain a new
residence permit or leave the country.

AMC shall provide the employee at the end of his service and at the latter's request with an end of
service certificate free of charge
POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

Procedure

Employees and relevant Head of Departments in the event of a resignation scenario should follow the
AMC Contract Expiration procedures

I. AMC Employee must submit a Form HR – Contract Expiration Application

II. AMC Employee must submit a written resignation letter/email to their direct line manager
III. The Employee is required to submit both Form HR – Contract Expiration Application and a
copy of the written resignation letter/email to their designated HRBP or any representable
from the Human Resources Department
IV. AMC will undergo rigorous considerations. Once the company has determined the results or
outcomes of your resignation letter, you will be notified and informed by relevant HR
personnel either via email or letter.
V. Once the resignation is approved, the employee must submit their Form HR – Resignation
Notice and Handover to their Head of Department. In contingencies, some employees are
exempted to serving the notice period
VI. After you have received your approval for exiting the employment contract, it is compulsory
that the employee has to initiate his/her handover process
VII. On the last Three (3) days of serving the notice period, the employee must complete the Form
HR – Exit Checklist. If the employee is exempted from serving the Notice Period, the form
must be completed and a copy is required to be submitted to both the Finance Department
and Human Resources Department

VIII. Exit employee can keep a copy of their Form - HR - Exit Checklist signed and stamped from
relevant departments
IX. Every Form - HR - Exit Interview is submitted to the Managing Director for review
X. Subsequently, the employees shall abide by AMC Contract Expiration Policy
POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

Gratuity

Gratuity Pay (End of Service Remuneration) will be as per Federal Law, UAE Labour Law &
Amendments (Article 132 read with Article 137)

The employee, who has completed one year or more in the continuous service, is entitled to the end
of service remuneration at the end of his service. Days of absence from work without pay are not
included in computing the period of service, and the remuneration is to be calculated as follows:

Limited Contract

Employment Length Gratuity Remuneration

<1 Year(s) N/A
1 Year(s) – 5 Year(s) 21 days pay for every year of Service
5 Year(s) + 30 days pay for every year of Service

 Leaving work before completing One (1) year; Not Entitled

 Twenty-One, (21) days pay for each year of the first Five (5) years of service; from the Basic
Salary
 Thirty, (30) days pay for each additional year; from the Basic Salary

Un-Limited Contract

Employment Length Gratuity Remuneration

<1 Year(s) N/A
1 Year(s) – 3 Year(s) 1/3 * 21 days pay for every year of Service
3 Year(s) – 5 Year(s) 2/3 * 21 days pay for every year of Service
5 Year(s) + 30 days pay for every year of Service

 Leaving work before completing One (1) year; Not Entitled

 One Third (1/3) of Twenty-One, (21) days pay for each year of the first Five (5) years of
service; from the Basic Salary
 Two Third (2/3) of Twenty-One, (21) days pay for each year of the first Five (5) years of
service; from the Basic Salary
 Thirty, (30) days pay for each additional year; from the Basic Salary
POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

The employee shall be entitled to end of service remuneration in respect of fractions of the year
payable pro rata to the time actually worked provided that he has completed one year of continuous
service.

If an employee under a contract with limited period leaves his work at his own option before the end
of the contract period he shall not be entitled to end of service gratuity unless the period of his
continuous service exceeds five years

Deductibles

Any amount paid to the employee for which the employee is personally liable to pay to AMC will be
settled before the final payment is released to the employee in accordance with the 'exit clearance
form.

AMC shall make an appropriate adjustment from the employee's final settlement as per applicable
deductions and will release the settlement details to the respective employee for confirmation
POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

Employee's Rights and Obligations

 The employee has the right to leave AMC without any notice if the employer breaches the
obligations outlined in the contract and the law, or in case AMC or his representative assault the
employee. On the other hand, AMC has the right to terminate the employee without prior notice
before the completion of 6 months. Also if the employee breaches the obligations outlined in the
contract and the law.

 The dismissal shall be considered arbitrary if the employee is dismissed without any reason after the
completion of his/her probation period, or if the reason of such dismissal is not work related or if it
is because of a complaint submitted to the concerned authorities against the employer.

 At the end of the contract period, the employer shall give the employee, based on his request, an
experience certificate; mentioning the date of acknowledgement of contract, date of contract
expiry, total period of service, type of work, last salary and other entitlements, if any. Employees
will be eligible to receive the experience certificate only if their service duration is at least six
months at the time of tendering resignation. An employee whose duration of service is any less
than six months shall not be entitled for an experience certificate.

 If the establishment is sold to another employer, the employee’s service shall continue and both
new and old employers shall be jointly responsible to pay the employee's salary for a period of six
months, after which, the new employer should solely bear the responsibility.

 If the employment contract contains a term preventing the employee from working for a competitor
for a certain period after the end of his service or during suspension from work, the employee shall
be bound to the same throughout the stipulated period.

 If the employee completes his limited period contract and does not wish to renew it, the employer
shall pay his return ticket to country of citizenship. If the employee resigns or terminates his
service contract, whether for a limited or unlimited period, he should bear the cost of the return
ticket

 The employer has the right to ask the employee to vacate the accommodation, if he has paid the
employee all his work dues.

 Employees on limited contracts may not receive all the benefits if they resign before the end of the
contract period.

 The employee also agrees to ensure a seamless transition/handover regardless of the circumstances
of separation from AMC
POLICY & PRECEDURE
Department Human Resources
Subject Employment Contract Discontinuance Policy

AMC Rights & Obligation

 It is the responsibility of the employee to initiate the handover process under the accountability of
the head of Department whereby the employee is required to complete all necessary formalities
stated in the Form HR – Exit Checklist
 The Head of Department is responsible to ensure the return of all property from the concerned
employee
 AMC has the right to terminate all existing and/or requested authorisations; Cheque Signatories,
Stamps, E-Signatures, Email, Passwords, Logins and User Identities. Each of which is accountable by
its designated Head of Department clearly segregated in the Form - HR - Exit Checklist
 AMC has the unrestricted right to store, delete, retrieve or use an AMC employee whose contract is
expired due to an action of termination or resignation at any point of time, as the need arises.
 End of Service settlement will only be processed by Finance only once the Form - HR – Exit Checklist
has been signed off by the concerned Head of Departments

Applicability

 All AMC Employees, Management and Staff

Target Audience

 All AMC staff that are leaving the organization

Responsibility

 Human Resource Department

 Head of the Departments
 Employees

Records

All forms should be archived by the Human Resources Department in the Employee's
personal records.

Operating Forms
Form HR – Contract Expiration Application
Form HR – Resignation Notice & Handover
Form HR – Exit Checklist
Form HR – Exit Interview

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