Notice Period in the UAE

The UAE Notice period conditions and requirements are essential to understand. Both parties that is employers and employees can act accordingly if they know well what UAE labor law says. It not only provides insights on termination but aware workers of resignation.

The regulations around the notice period enable a smoother transition. Plan to resign or are being terminated in the UAE’s dynamic job market? This ultimate guide explores all the details. Discover everything you need to know about the notice period in the UAE, including:

  • The laws
  • Types of contracts, and
  • How notice periods in UAE are managed.

We help maintain professionalism with the help of our detailed guide!

What is a Notice Period in the UAE?

A notice period is the advance notice. An employee or employer must give this notice before an employment contract termination. The period allows employers and employees to plan for the transition. They have enough time to fill a vacant position or seek new employment. The notice periods are regulated by the MOHRE in the UAE. The Ministry of Human Resources and Emiratisation is working under the UAE Labour Law.

The notice period is specified in the employment contract. It may vary depending on the contract type and the employment length. UAE’s new labor law 2025 ensures fairness by establishing minimum notice periods. It protects the rights of employees and employers alike.

What Does UAE Labour Law Say About the Notice Period?

Articles 117 and 118 of the UAE Labour Law define the notice period. It provides guidelines on its enforcement. These articles specify that:

  1. Notice Period Requirements:

    • Both parties must give notice before the contract termination. This is regardless of the reason for termination.
    • The notice period ranges from 30 to 90 days. It depends on the employee’s tenure and contract terms.
  2. Compensation:

    • The employee may receive their salary and benefits during the notice period
    • The violating party is required to compensate the other party if the notice period is not adhered to. It is usually through a “Notice Period Allowance.

An overview of Articles 117 and 118 for quick reference:

Article Details
Article 117 Specifies the minimum notice period for termination: 30 days for indefinite contracts, with variations based on employment duration.
Article 118 Discusses compensation during the notice period and the continuation of employment obligations.

Types of Notice Periods in the UAE

The notice period in the UAE varies. However, it depends on the employment contract type. The two main types of contracts are:

  1. Unlimited Contracts and
  2. Limited Contracts.

Explore how each one works:

Unlimited Contract

The notice period is 30 days for unlimited contracts. However, If an employee wishes to resign, this 30-day notice period must be honored. The same applies when the employer decides to terminate the contract. Note that, both parties are required to agree.

Employee’s Resignation:

An employee must inform the employer within 30 days. Notifying him in advance before leaving the job.

Employer’s Termination:

The employer must also provide 30 days’ notice before ending the employment. The termination is for reasons specified under UAE Labour Law. An example can be gross misconduct.

Action Notice Period
Employee Resignation 30 Days
Employer Termination 30 Days

Limited Contract

The notice period is also 30 days for limited contracts unless the contract specifies. If the employee chooses to leave. Similarly, if the employer decides to terminate the contract early. In both scenarios, parties must adhere to this minimum notice period.

Notice Period Allowance:

The violating party must pay compensation if either party fails to serve the agreed-upon notice period. This may include the remaining period salary.

Action Notice Period
Employee Resignation 30 Days
Employer Termination 30 Days

If you have a question in mind whether can I resign without a notice period in UAE, then we are going to cover this topic as well later in the blog. Keep reading!

Notice Period During Probation

The UAE probationary periods are usually set for up to 6 months. Either party can terminate the employment with a 14-day notice during this time. Probation periods allow employees and employers to evaluate. They have a chance to determine whether it is a good fit for them or not.

Action Notice Period During Probation
Employee Resignation 14 Days
Employer Termination 14 Days

Can the Notice Period Be Changed?

The notice period can be altered. However, it requires the mutual agreement of both parties. This agreement must be documented in writing. Both parties are required to sign it to be valid. Ensure both parties agree to the change if there is a need to shorten or extend the notice period.

Further, in certain situations, the employer may opt to waive the notice period. It can be conditions such as serious misconduct or breach of contract

Working During the Notice Period

The employee must carry out their duties during the notice period unless otherwise agreed. The employees are required to continue working their normal hours. They should maintain their professionalism until the last day of employment.

Also, employers are required to fulfill their obligations during the notice period. It may include: 

  • Continuing to pay the employee their salary and
  • Providing any benefits outlined in the contract.

While during the notice period, here are a few things to keep in mind:

Completion of Pending Work:

Employees should ensure that all their pending tasks are completed. They can be handed over to a colleague.

Open Communication:

Both parties should maintain clear communication. They must be transparent about expectations and responsibilities during the notice period.

Punctuality:

Employees must continue to arrive on time. They must work their full hours to demonstrate professionalism until their last day.

Payments During the Notice Period

Employees receive their salary and benefits during the notice period. Before the notice period completion, if the employee decides to leave the employer may seek compensation. This can be as outlined in the contract.

The final settlement typically includes:

  • Payment for the days worked during the notice period.
  • Any unused annual leave.
  • Severance pay, if applicable.

The employer must compensate the employee for the notice period. This can be as per the contract terms. This scenario occurs if an employer decides to terminate an employee early.

Process of Notice Period

Notifying the other party is important when either party wishes to contract termination. The employee must inform the employer they are going to resign. Similarly, the employer must provide written notice to the employee. In case, they wish to terminate the contract.

Party Required Action Timeframe
Employee Submit resignation letter (in writing) 30 Days (or agreed)
Employer Provide written notice of termination 30 Days (or agreed)

Factors Affecting Notice Period in the UAE

While the standard notice period is 30 days, several factors can influence this timeframe:

  1. Employment Duration: Longer tenures may require longer notice periods.
  2. Type of Contract: Limited and unlimited contracts can have varying notice periods.
  3. Employee’s Role: Employees in higher positions may need longer notice periods to find suitable replacements.

Immediate Termination

There are certain circumstances under which an employee may be terminated immediately, without the need for a notice period. These include:

  • Gross Misconduct: Theft, fraud, or other criminal behavior.
  • Performance Issues: Failure to meet work standards after repeated warnings.
  • Financial Fraud: Engaging in activities that damage the company financially.

Conclusion

The UAE notice period is essential for a smooth transition for employers and employees. However, rights and obligations understandings are a must. Knowing them closely within the UAE Labour Law can help avoid disputes. An assurance that your job transition is as seamless as possible.

For an employee going to resign or an employer looking to terminate, adhering to the legal notice period saves both. The requirements protect both parties. Giving the chance to handle the transition professionally.

Consider utilizing HR software solutions to stay on top of employment laws. Along with optimizing your HR functions. This way, you can manage contracts, notifications, and settlements efficiently. Navigate the complexities of the notice period with ease with proper planning!

 

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