The Notice Period in UAE is an important part of the employment contract. It is the determination of the terms and conditions for end-of-service and end-of-contract. Employers and employees both parties must comply with the UAE Labor Law 2024 regarding the notice period. The notice period is given before termination or before resignation for the end of employment.
We share the details about the notice period in the UAE in this guide. We will give you a complete overview of limited and unlimited employment contracts in UAE, probation periods, and allowances and compensation for employment.
What is the Notice Period in UAE in 2024?
The notice period in UAE is the pre-determined time period given by the employer in the termination letter in UAE or by the employee in case of resignation at the end of service. Employers and employees, both parties must provide a notice period in writing to notify before the end of the employment contract.
The notice period is an essential part of employment law. It helps to execute a smooth transition process for employers to receive and for employees to hand over the responsibilities with a certain level of trust. It’s essential to determine the notice period in employment contracts to avoid inconvenience, legal obligations, or penalties from the regulated authorities in the UAE.
The new labor law in the UAE describes certain regulations regarding the notice period that employers and employees both parties have to follow to comply with the law of the Emirates. Learning and following the guidelines are mandatory to preserve a harmonious and balanced work atmosphere and a healthy work relationship.
Employees and employers can agree to shorten or extend notice periods.
If an employee wants to switch jobs or wants to quit the company. He or she must provide a written notice period with a resignation letter to the employer to comply with the law. The employee can discuss conditions to reduce notice period with employer agreement.
In case of unethical practices, the employer or employee can face legal obligations and penalties or court proceedings. It’s wise to follow the rules for mutual benefits and a secure transition process to abide by the law of the Emirates.
How Does UAE Labor Law Define Notice Periods?
In the UAE, a notice period is a pre-determined period for employees and employers to prepare for the transition and ensure a smooth transition of duties. It’s an official declaration to end the employment contract with legal compliance and a smooth work relationship.
The UAE labor law mandates a notice period before employment termination to protect the rights of both parties. The duration varies based on the employment contract, employee’s skills, and position in the company.
What is the New Rule For Resignation in the UAE?
The new rule for resignation in the UAE remains the same as it is;
New employees during the probation period must provide a written notice period of fourteen days with resignation. They can check for a resignation letter sample UAE before proceeding.
For permanent employees, there is no specific notice period mentioned in the labor law regulations. Employers and employees should clarify notice periods in employment contracts for mutual agreement.
Both parties must comply with the law, and in case of breaching the contract or notice terms can result in charge of penalties and court proceedings for employers and visa cancellations, delays, or bans in future employment for employees in the UAE.
Factors Determining Your Notice Period in UAE
According to the UAE regulations, the two essential factors can affect the notice period;
Terms of Employment Contract: The employment contract has pre-determined specified terms and conditions for the notice period and end-of-service. The minimum is thirty days and a maximum of ninety days according to the terms and conditions of the company. The employees must check their employment contract for the notice period to avoid inconvenience.
Probation and Permanent Employment: The notice period in UAE depends on the employee’s position in the company. Permanent workers may give or receive notice for up to ninety days, with a minimum of 30 days. However, the employees on probation can receive or provide a fourteen-day notice period in case of termination or resignation.
The UAE unlimited employment contracts have no pre-determined date for the end-of-service. Notice time for employee leaving determined by crucial factors under unlimited contract.
Notice Period for Unlimited Contracts in UAE
The UAE Labor Laws and Regulations:Labor laws and regulations in UAE mention that notice periods can range from one month up to three months, as per conditions. A one-month written notice should be provided in advance by both the employee and the employer before leaving a job.
The Terms of Employment in the Contract: The employment contract can specify the notice period for a minimum and an extended period for the end-of-service in case of leaving or termination. This notice period can be extended to three months or reduced on mutual agreement of both parties. Employees must read carefully the terms of the contract and discuss further changes if required with the employer.
Key Aspects to Avoid Inconvenience;
- Providing a notice period before leaving a job helps employees to build a trust-worthy work relationship and allow a smooth hand over for the responsibilities to the employer.
- It also helps to prevent potential risks of delays, bans, or cancellation of employment visas in the UAE.
- The employer has no legal obligation to offer compensation in lieu of notice. However, it can be possible with negotiation between the employer and the employee.
- In case of a contract breach, the terms of long notice periods from the employee can result in legal obligations, and the employer may withhold some of your end-of-service benefits and compensation.
Notice Period for Limited Contracts in UAE?
On the end of service date specified in the limited contract, it will automatically end. If any employee wants to leave before the renewal date, it can be changed, reduced, or extended. He or she must provide a written notice period to avoid inconvenience.
What is the Notice Period for Probation in the UAE?
According to the UAE labor law, the notice period for probation is fourteen days before leaving or termination from the employer or the employee.
Can The Notice Period Be Exempted or Changed?
According to the terms and conditions of the employment contract, the employer and employee can agree to exempt, extend, or change the notice period.
Employee and employer must agree in writing on the adjusted notice period. It is possible to reduce, extend, or waive the minimum thirty-day employment contract.
How Do the Payments Work During the Notice Period in UAE?
During the UAE notice period, you will still receive your full salary, benefits, and allowances as stated in your employment contract. You can also use paid leave or receive compensation.
Minimum 30 days’ notice required by UAE labor law or contract breach.. The breaching party pays the other their complete salary for the remaining unserved notice period days.
The terms of the employment contract can be changed. It’s better to check it for a specific notice period and payment details.
Notice Period Allowances and Compensation
Notice periods allowances and compensation in the UAE work as a bridge between the employer and your last working day. Here are the essential points on notice period payments and salary checks UAE:
Employees must receive their total salary with allowances and end-of-service benefits throughout the notice period.
You may be entitled to financial compensation or paid leave during the notice period.
Compensation is due to the employer in cases of contract breaches for the notice period, which is 30 days by law. In the event of a breach of contract, the breaching party is liable for the remaining salary.
Notice Period Payment
Notice period payment in the UAE is your final step to the new journey. Here are the notice period payment details;
Total Salary and Allowances:
Throughout the notice period, the employee should receive total salary, allowances, and all the end-of-service benefits, including all the fixed allowances for the position.
Unused Paid Leaves & Vacation Days:
Employees can take unused vacation days or paid leaves during the approved notice period or get them financially compensated as per their employment terms of the contract.
Contract Breach:
The notice period in UAE is a minimum of thirty days, according to the employment terms of the contract. In case of contract breach, it is considered unlawful practice and triggers the compensation.
Unused Vacation Days:
You can use unused vacation days during your notice period with full payment, or you can settle your disagreement with financial compensation.
Compensation in Lieu of Notice:
In the UAE, compensation is liable when the notice period for employment termination is broken or if an employment contract is breached.
- Breach of Contract & Compensation: Failure to provide a thirty-day notice period as required by UAE labor law or employment contract results in owed compensation.
- Compensation Liability: The person who breaches the contract is liable to pay the other party their full salary for the remaining unserved notice working days. It compensates for lost revenue during the unworked notice period.
Notice Period Template for Employer
Here’s the most popular notice period template for the employer in the UAE;
Here’s the most popular notice period template for the employer in the UAE;
Date
Employee Name
Employee Position & Title
Subject: Notice Period – Acknowledgement
Hi, I’m [Employee Name],
The letter acknowledges receipt of your resignation from your position as [Position Title] at [Company Name], effective [Last Working Day] (Number of days from today).
We appreciate your contribution to [Company Name] and your willingness to ensure a smooth handover during the notice period.
We will work with you to finalize your responsibilities and facilitate a knowledge transfer to your replacement.
Please remember to return all company equipment and assets that are company property upon your resignation on the last working day.
We wish you for the growth and success in your future endeavors.
Sincerely,
[Your Name] [Your Title]
Notice Period Template for Employee
Your Name
Your Position Title
Your Contact Information (Address, Email & Phone)
Date
Employer Name
Employer Contact Information (Office Address, Phone, Email ID, Company Name)
Subject: Resignation – [Your Name]
Dear [Employer Name],
Please accept my resignation letter as a formal notification that I am resigning from my position as [position Title] at [Company Name], effective [Your Last Working Day] (Number of days from today) in accordance with my employment contract according to the UAE Labour Law.
I appreciate the opportunities for professional growth and development during my time at [Company Name].
[Briefly state a reason for your resignation, but this is not mandatory.]
I am committed to ensuring a smooth handover of my responsibilities during the notice period to maintain a level of trust. I am glad to assist and provide training for my replacement and complete any outstanding tasks.
Thank you again for the opportunity to work at your company, [Company Name]. I hope you and all your co-workers will have a successful future.
Sincerely,
Your Name,
Your Signature.
FAQs
What happens if an employee resigns without a written notice in the UAE?
Resigning without a written notice in the UAE is leading to potential risks for penalties and legal obligations. Unserved notice may result in full pay, delays in end-of-service benefits, visa cancellation, or even a ban on future UAE employment.
How much notice is required during the probation period in the UAE?
The notice period during a probation period in the UAE is typically 14 days. This applies to both the employer and the employee for either resigning or terminating the employment contract.
What is the 14-day notice period in UAE?
The 14 days notice period in the UAE is required during the probation in case of resignation from the employee and in case of termination from the employer.
Conclusion
The notice period in the UAE serves as a bridge between the employer and the employee’s resignation and final departure from the company. Understanding the importance of the notice period will protect the rights of both parties and prevent legal complications. Employees in the UAE should review their employment contract for specific terms, laws and procedures for smooth transitions.
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