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Saturday 12 September 2009 (22 Ramadan 1430)
 

Law and You by Mohammed Jaber Nader

 
 

A.J.K. I am an Indian national who has been working in the KSA for the last eight years. Currently I am working for a trading company, which I joined through a no-objection certificate. There is a clause in my appointment letter (not a contract that I signed) that states if I leave this company at any point of time, I cannot work for a competitor company for at least two years. Now I am seeking to join another company that is not a competitor. I have submitted my resignation letter 30 days in advance. If my employer does not provide me a no-objection certificate, what should I do?

As it says in your contract: You may not work for a competitor company. Therefore you may work for any other noncompeting employer. You should not worry if you have terminated your contract legally.


 

M.J. I have been working for my present company for the past eight years. Recently I received a good offer from another company with an attractive salary package. Can I request that my present sponsor company release me locally? If management declines what should I do?

You cannot compel an employer to do what he is not bound to do by law or by the terms of a contract. You can offer an incentive, such as pointing out that the employer would not have to pay for your final-exit plane ticket. You could offer to forfeit all or some of your end-of-service benefit (ESB). The employer is not compelled to give you a no-objection certificate, but is compelled to pay your ESB and for your flight home assuming you resign in accordance to the law and the terms of your contract, if any. If your employer refuses, your only recourse is to resign, collect your ESB and leave the country. You can return to the country after a year unless your job is of a sensitive nature to the employer, such as salesman, senior management or accounting. If that is the case you may not return for three years.


 

A.I.O. I have been working for a company for about eight years and now I want to resign. The problem is that my company is not accepting my resignation. Can they force me to continue to work?

No. You have a right to resign, but with some responsibility to not leave your employer in a lurch. The best time to resign is at the end of your contract, which is typically the expiration date of your iqama. If you resign within an established work period, you could be considered breaching your contract. If that happens you may be expected to compensate your employer. Generally, if you resign under normal circumstances, this is not an issue. If you time your resignation with the end of your work period stated in your contract (or based on the expiration date of the work/residency permit) there should be no problem. It’s best you approach your employer to gauge his response before making any commitments, and be flexible about your termination date if you can.


 

P.P.L. I have been living in Saudi Arabia for some time. I want to know about SAGIA (Saudi Arabian General Investment Authority) requirements for opening a foreign branch in Jeddah. My brother in India is involved in the computer business and we jointly want to establish a branch office here. Is this possible?

SAGIA offers incredible facilities for foreign investment. Go to www.sagia.gov.sa and you will find answers to many of your questions. You can also visit a SAGIA office in Jeddah or Riyadh. They will help you. It is also good if you retain a lawyer for this.


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