The UAE visa cancellation and final settlement process requires a clear understanding of labor laws. Knowing the necessary documentation ensures a smooth transition for both employers and employees. To avoid legal complications, follow the steps carefully. Be sure that both parties fulfill their rights and obligations. This guide will walk you through everything about the visa cancellation and final settlement process.
Introduction to Visa Cancellation and Final Settlement
Visa cancellation and final settlement often occur when an employee’s contract is terminated. It also implies when workers choose to leave the UAE. Employers must cancel the employee’s work visa in such situations. By doing so, they ensure that all legal and financial matters are properly settled. These procedures are clear evidence that both the employee and employer comply with the UAE’s labor regulations. This way, they can avoid penalties or future legal issues.
The guide is written to talk about the entire visa cancellation and final settlement process. For instance, we are going to cover:
- What is visa cancellation and its importance
- Visa cancelation types
- Visa cancellation and final settlement process
- Top reasons for visa cancellation and final settlement
- Key considerations for employers to be noted
- Hire PEO Middle East: Your partner in the visa cancellation process
Begin exploring the details with us, and keep reading to get more insights!
What is Visa Cancellation?
The process of a work visa termination is called visa cancellation. It includes a work visa, a residence visa, and a dependents’ visa. The cancellation process ensures that you or your employee is no longer staying in the UAE under that visa status.
Employers are responsible for canceling their employees’ work visas. They do so when they leave the company. On the other hand, employees cancel their residency visas if they are relocating or leaving the country.
Why Understanding Visa Cancellation is Crucial
Employers must grasp the intricacies of visa cancellation. This greatly helps them to comply with the law. The sponsor or employer has the authority to cancel an employee’s visa. An employer initiates the visa cancellation process when the employee leaves the company or a contract is terminated.
Additionally, the employee may submit a visa cancellation request. It must outline the reason for the visa termination.
Types of Visa Cancellations
There are several scenarios under which a visa cancellation may occur. Want to know what are those? Let’s talk about it in detail:
Employment Termination:
The visa will be canceled in both of the scenarios. If the employee’s contract is terminated by the employer. Secondly, in case the employee chooses to resign,
Visa Expiration:
The visa will be automatically canceled if the employee’s visa expires and is not renewed by the employer.
Violation of Law:
The visa may be canceled if the visa holder is found to violate UAE laws or immigration rules.
Automatic Cancellation:
This applies when an individual remains outside the UAE for over six months. The visa will be automatically canceled after this period.
The Process of Visa Cancellation and Final Settlement
If you’re an employer and seeking to visa cancellation process, then this blog part is a must-read. To initiate a visa cancellation, you must follow a specific procedure:
Step 1: Notify the Employee
Employers must provide the employee with adequate notice if they are initiating the visa cancellation. Likewise, employees who terminate their contract must inform their employer. They must sign the necessary documents with a visa cancellation letter.
Step 2: Submit Documentation
The employer must submit the required documents to the relevant authorities. The step is taken to proceed with the cancellation. This includes:
- A passport copy of the employee
- Emirates ID (if applicable)
- Completed visa cancellation request form
- MoHRE (Ministry of Human Resources and Emiratization) approval
- Payment for the cancellation fee
- In the case of an employee’s death, a death certificate is required
Step 3: Final Settlement and Documentation
The employer must settle all outstanding dues after visa cancellation in UAE. The final settlement includes salary payments and unused leave days. It also contains any end-of-service benefits (EOSB) by the UAE’s labor law.
The final settlement should be completed within 14 days of contract termination. The employee is entitled to receive:
- Salary dues: Payment for any unpaid salary or bonuses
- End-of-Service Benefits (EOSB): This includes severance pay based on the employee’s length of service, calculated as:
- 21 days’ salary for each year if employed for less than 5 years
- 30 days’ salary for each year if employed for over 5 years
- Other benefits: This includes compensation for unused annual leave, any bonuses, or outstanding payments.
Step 4: Clearance Process
Employees must complete the necessary clearance procedures before they leave the UAE. It includes:
- Settling any utility bills
- Terminating leases, and
- Ensuring any company-owned assets are returned.
To check Dubai visa cancellation status online, visit the official ICP smart services website.
Final Settlement: What Does It Include?
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- he final settlement is the amount due to the employee upon employment contract termination. This amount compensates for unused leave, end-of-service benefits, and other dues.
- The final settlement is governed by the UAE Labour Law. The amount can vary depending on the employment length and the contract terms.
Here’s what constitutes a final settlement:
End-of-Service Benefits:
Employees are entitled to end-of-service benefits under the UAE Labour Law. They are based on the length of time they have worked with the company. The typical calculation is:
- 21 days of basic salary for each year worked for the first 5 years.
- 30 days of basic salary for each subsequent year after 5 years.
Employees will receive the full end-of-service benefits if their contract is terminated by the employer. The calculation of the end-of-service benefits may differ if the employee resigns:
Unused Annual Leave:
Employees are paid for any unused vacation days based on their basic salary and the number of unused days.
Other Dues:
Gratuity:
Gratuity can be included in the final settlement if applicable. Especially in cases of service-related bonuses or entitlements.
Salaries:
Any outstanding salaries due to the employee will also be part of the final settlement.
Deductions:
The employer may deduct certain amounts from the final settlement, such as:
- Unpaid loans or advances.
- Compensation for any damage or loss caused to company property.
- Overdue penalties, if applicable.
Payment Timeline:
The employee receives the final settlement once the visa cancellation process is completed. The employee has handed over any company property. These are keys, equipment, or access cards. The employee should ideally make this payment within a few days to a week after leaving the job.
Common Reasons for Visa Cancellation and Final Settlement
- Legal Issues: If the employee violates UAE laws or overstays their visa. In this case, the authorities may cancel the visa.
- Policy Changes: UAE immigration or labor law changes may lead to visa cancellation.
- Personal Choice: Employees may choose to cancel their visa if they wish to leave the UAE or pursue other opportunities.
To read about nonrenewal contract letter samples and employee onboarding and offboarding process, you can check our detailed guides here. Explore more and keep upgrading your knowledge!
Key Considerations for Employers
Employers must adhere to the legal obligations regarding the termination of employee contracts and visa cancellation. Try to meet all requirements in a timely so that you can avoid any misfortune. failing to do so may result in legal consequences. These may include fines or travel bans. Therefore, it’s crucial for the employer to:
- Ensure that the employee’s final settlement is processed accurately and promptly.
- Provide the employee with a visa cancellation letter, which is necessary to initiate the process.
- Consult legal advisors if necessary to avoid disputes or misunderstandings during the process.
How to Ensure Smooth Visa Cancellation and Final Settlement:
Communication is Key:
Open communication between the employer and employee is essential. It ensures a smooth transition. Employers should communicate the cancellation process. While employees must aware of their rights and obligations.
Know Your Rights:
Under UAE Labor Law, employees should be aware of their rights. They are entitled to end-of-service benefits and payment for unused leave with other benefits. Employees have the right to raise them with the relevant authorities if there are any issues with the final settlement.
Clear Documentation:
Keep all your documents in order, including:
- Resignation letters
- Employment contracts, and
- Records of communication with your employer.
This can help avoid any potential issues during the visa cancellation and final settlement process.
Check for Outstanding Debts:
Employers should ensure that all financial obligations, such as:
- Unpaid salaries
- End-of-service benefits, and
- Unused leave is settled before the employee’s visa is canceled.
Clear any personal dues or debts. This helps to avoid any legal issues for employees. When an employee resigns or ends their contract, they initiate the visa cancellation process for employers. Employees should cancel their residence visas before leaving the UAE to avoid fines or penalties.
Beforehand apply for the exit visa well in advance if you are an employee leaving the UAE. Employers should issue the exit visa after completing the visa cancellation process.
PEO Middle East: Your Partner to Visa Cancellation Process
PEO Middle East is your trusted partner! The team flawlessly navigates the visa cancellation process in the UAE. PEO Middle East ensures a seamless experience with in-depth knowledge of local labor laws and immigration regulations. A proper compliant solution for both employers and employees. Our expertise helps streamline the entire visa cancellation process. We’ll handle documentation to manage final settlements. This greatly helps businesses focus on their core operations. In the meantime, ensure legal requirements are met efficiently and without hassle!
Get our instant assistance today. We are just a message away. We handle everything while you can focus on other crucial matters. Join us and let us help you with your visa cancelation process.
Conclusion
In conclusion, visa cancellation and final settlement are essential steps, especially in terminating an employee’s contract. It also plays a crucial role when an employee leaves the UAE. Employers have to follow the proper legal procedure. This helps them avoid penalties and provides the employee with their due compensation. Employers should ensure timely documentation submission for a hassle-free process. They also need to meet proper financial settlement and adhere to all requirements set by the UAE government.
Need further assistance with visa cancellation or final settlement processes? It is advisable to consult with experts. They guide you through the legal and administrative requirements. As a result, everything is completed efficiently and within the law.
FAQs
- Why might a visa be canceled?
A visa can be canceled for various reasons, such as:
- A change of employer
- Voluntary departure from the country
- Legal violations, or
- Failure to comply with visa requirements.
The employer or government authorities can initiate the cancellation. An individual can also cancel it depending on the situation.
- What are the common types of visa cancellations?
- Voluntary Cancellation:
When the visa holder chooses to leave or change employment. It usually happens due to relocation, job change, or personal decision.
- Involuntary Cancellation:
When the government or employer cancels the visa. The reasons can be legal violations, expired documents, or non-compliance with visa terms.
- How is the visa cancellation process initiated?
The process starts with compliance with the employment contract. The employer cancels the work permit or labor card. After this, they initiate the cancellation of the employment visa with the relevant authorities. - What documents are required for visa cancellation?
Essential documents include:
- Visa Cancellation Form completed by the employer.
- Original Identification of the worker.
- Ministry of Human Resources and Emiratization (MOHRE) approved test (if applicable).
- Residence Visa Photocopy (if the original is unavailable).
- How are individuals notified about visa cancellation?
The employer typically notifies employees of visa cancellation. This can occur via a cancellation letter, or, if the employee is abroad for over six months, cancellation may proceed without prior notice. Non-notification could result in penalties in cases of absconding. - What financial considerations are involved in the final settlement process?
Final settlements involve clearing any outstanding debts, including:
- Rental agreements
- Utility bills, and
- Loans
All financial obligations are settled by employees before departure to avoid complications.
- What steps are needed for obtaining necessary clearances and completing exit interviews?
Key steps include:
- Initiating the process by receiving a cancellation notice.
- Gathering documents to complete the required paperwork.
- Attending exit interviews and obtaining clearances from relevant authorities.
- Settling all debts to avoid issues during exit.
- Are there legal implications individuals should be aware of during visa cancellation?
Failing to follow the correct procedure can lead to legal consequences. The visa is automatically canceled if an individual is absent for over six months. Employers may also fail to inform employees in certain situations. This may lead to additional challenges. - What are the rights and obligations of individuals during the visa cancellation process?
Employers must communicate clear cancellations to their employees, ensuring transparency in the process. - When is it advisable to seek legal advice during visa cancellation?
Legal advice should be sought in complicated cases, such as when facing visa violations, or when unsure about the legal aspects of the cancellation process. Legal professionals can ensure compliance and protect individuals’ rights.
