Insights

Notice Period in UAE: All You Need to Know

notice-period-in-uae

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?

notice period in UAE in 2024

The notice period 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.

Employer and employee must agree with the given notice period, and it can be reduced or extended with mutual understanding of both parties.

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 should have a discussion about certain conditions to reduce the notice period, and it can be reduced in case of agreement of both parties.

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.

What is the UAE labor law for notice periods?

The notice period is a pre-determined time period given by the employer or employee before the end of service to allow both parties to settle the essential preparations for receiving and handing over the responsibilities and guarantee a hassle-free transition of services. It’s an official declaration to end the employment contract with legal compliance and a smooth work relationship.

The UAE labor law specifies that the notice period is a legal requirement that must be granted before the end of employment. Both parties must adhere to this law to protect their rights and fulfill the labor laws and regulations in the Emirates. The notice period duration can vary according to the terms of the employment contract and the experiences, skills, and position of the employee 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 in the UAE before proceeding.

For permanent employees, there is no specific notice period mentioned in the labor law regulations. However, employers and employees can agree on mutual understanding, and it’s better to carefully read the employment contract for notice period terms and conditions mentioned in it.

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

notice period in uae new labour law

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 depends on the employee’s position in the company. Permanent employees can receive or provide a notice period of a minimum is thirty days to a maximum of ninety days. However, the employees on probation can receive or provide a fourteen-day notice period in case of termination or resignation.

Notice Period for Unlimited Contracts in UAE

The UAE unlimited employment contracts have no pre-determined date for the end-of-service. If any employee wants to resign or quit from the current position under an unlimited employment contract, the notice period is affected by the two essential factors;

The UAE Labor Laws and Regulations: The UAE labor laws and regulations mention that the minimum notice period issued by the employer or employee can be one month, or the maximum can be three months, as per conditions. The employee in case of resignation and the employer in case of termination must provide a written notice period of a minimum of one month before leaving the job in advance and mention the last working day.

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?

The limited contracts specified a pre-determined date for the end of service, and it will be automatically ended on the given date. In case of renewal can be changed, reduced, or extended if any employee wants to leave before this pre-determined date. He or she must provide a written notice period to avoid inconvenience.

What is the Notice Period for Probation in the UAE?

UAE labor law specifies a fourteen-day notice period before leaving or being terminated.

Can The Notice Period Be Exempted or Changed?

The notice period can be exempted, extended, or changed by the mutual agreement between the employer and the employee according to the terms and conditions of the employment contract.

The agreement between the employee and employer for the adjusted notice period must be written for clarity. However, the minimum thirty-day employment contract can specify more to be reduced, extended, or even waived according to the terms and conditions.

How Do the Payments Work During the Notice Period?

During the UAE employment notice period, you’re entitled to receive your complete salary and mutual benefits according to the UAE labor law. It includes any pre-determined fixed allowances in your employment contract. You can also use your approved paid leaves or vacation days or get them compensated financially.

If either you or your employer breaks the notice term for a minimum of thirty days as required by the UAE labor law or mentioned in the contract, compensation is mandatory. 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 in UAE:

Employees must receive their total salary with allowances and end-of-service benefits throughout the notice period.

Unused paid leaves or vacation days can be utilized during the notice period time or compensated financially, depending on your employment contract.

In case of contract breaches for the notice period, which is a minimum of thirty days by the law in the Emirates, the compensation is due to the employer. The party who breaches the contract is liable to pay a complete salary for the remaining unserved working days of the notice period.

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 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:

Vacation days unutilized during the notice period can be used with full payment or settled 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: If an employee or employer fails to provide the proper notice period of a minimum of thirty days as required by UAE labor law or according to the terms of the employment contract, compensation is owed.
  • 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

Notice Period Template

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.]

To maintain a level of trust, I will ensure a smooth handover during my notice period. 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. The employee could be forced to pay the employer his or her full salary for the unserved notice period, face delays in receiving end-of-service benefits, work 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 fourteen 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 fourteen-day 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

Employees and employers can communicate during a UAE notice period. Understanding the importance of the notice period will protect the rights of both parties and prevent legal complications. Employees are recommended to check their employment contract for these specific terms and conditions. Both parties are encouraged to follow the law and procedures to ensure a smooth transition and prevent any financial and legal consequences in the UAE.

Categories

Sign up to receive the latest recruitment insights and Hudson RPO news






    Popular Articles