NO LABOUR BAN – SCENARIOS

Types Of Ban Recently Ministry of Labour New Labour Law rule amendment , things have changed a bit. No longer do individuals under SkillLevel 1, 2 or 3 face any labour ban, provided they follow the new labor law rules. Many of us are curious as to whether we face labour ban if we change our jobs. Many of us are under limited or unlimited contract. The scenarios are different and there are different ways in which you can avoid labour ban. 

In this post today, I wanted to cover on circumstance or scenarios under which you will not face labour ban under Limited Contract or Unlimited Employment Contract.

Limited Contract – No Labour Ban – Scenarios

First I’d like to cover when you will have no labour ban under Limited Employment Contract:

1. If your employment contract has expired or has not been renewed:

-A limited contract is time bound and if you have completed the expiry date of your limited labour contract, you will not face labour ban.

2. Either you resign or your company ends your employment contract after it has expired:

-Whoever terminates the contract, should serve notice period as per the employment contract issued by Ministry of Labour;

-You must continue to honour your obligations under labour contract;

-The terminating party indemnifies (settle) the other party amount as agreed in the employment contract issued by MOL;

3. You and your employer agree to terminate the contract during its term, you will have no labour ban provided you are under Skill Level 1, 2, 3. For Skill level 4, 5, you have to complete minimum 6 months of service to avoid labour ban.

4. Your company terminates your employment without your fault, you will have no labour ban. Skill Level 4, 5 need to be minimum 6 months with the company.

5. When you do not receive your salaries for continuous 2 months (60 days), you can resign and you will not face labour ban. 

6. If your company is shutting down, you will not face labour ban.

7. If you have filed a case at MOL and you have won the case against your employer/company, you will not face labour ban. You are also eligible for the below entitlements:

-Wages accrued till the last working as deemed by MOL Court;

-Compensation for early termination of limited contract (usually 3 month gross salary);

-Your End of Service Gratuity payment;

-Accrued leave en cashed;

-Any other obligation of your company as per labour contract;

Unlimited Contract – No Labour Ban – Scenarios

Under Unlimited Contract too, you have similar rights. An unlimited contract is one which does not have an end date and is renewed automatically. Here are the scenarios where you will not face labour ban under Unlimited Contract:

1.  Either you or your employer terminates the employment contract:

-You and/or your company serve the notice as per your employment contract;

-You and/or your company continues to honour the obligations as per your employment contract;

-You have completed at least 6 months of service under your contract if you are skill level 4 or 5. For Skill Level 1, 2, 3 this is not required.

2. You and your employer agree to terminate the contract during its term, you will have no labour ban provided you are under Skill Level 1, 2, 3. For Skill level 4, 5, you have to complete minimum 6 months of service to avoid labour ban.

3. Your company terminates your employment without your fault, you will have no labour ban if you are under Skill Level 1, 2, 3. Skill Level 4, 5 need to be minimum 6 months with the company.

4. When you do not receive your salaries for continuous 2 months (60 days), you can resign and you will not face labour ban.

5. If your company is shutting down, you will not face labour ban.

6. If you have filed a case at MOL and you have won the case against your employer/company, you will not face labour ban. You are also eligible for the below entitlements:

-Wages accrued till the last working as deemed by MOL Court;

-Compensation for early termination of limited contract (usually 3 month gross salary);

-Your End of Service Gratuity payment;

Knowing your rights under limited contract and unlimited contract will serve good to you and your career. Most of the time

So now you know the scenarios in which you will not receive a labour ban. Sometimes, this can be confusing. So read as many times. If you have not understood, do let me know through comments.