UAE Notice Period Explained: When Employees Can Leave Early and What Compensation They May Owe or Receive.
Dubai: Thinking about leaving your current job or considering a more attractive employment opportunity with another company? Before submitting your resignation, it is essential to understand the notice period specified in your employment contract.
In the UAE, notice periods generally range between 30 and 90 days, depending on the conditions outlined in an employee’s contract. However, many workers may wonder whether they can resign before completing the required period and what financial consequences could arise if they leave early.
Understanding these requirements can help employees avoid unnecessary disputes and ensure a smooth transition between jobs.
Here is a detailed explanation of what UAE Labour Law states about notice periods, salary payments, early resignation and the regulations applicable to employees serving probation.
What Does a Notice Period Mean?
A notice period refers to the advance notification that an employee or employer must provide before bringing an employment relationship to an end.
It allows both parties sufficient time to prepare for the termination of the employment contract, whether the employee chooses to resign or the employer decides to end their services.
Under UAE employment regulations, employers and employees are generally required to comply with the notice period agreed upon in the employment contract.
What Is the Required Notice Period in the UAE?
Article 43 of Federal Decree-Law No. 33 of 2021, which regulates private-sector employment relationships in the UAE, establishes the permitted duration of contractual notice periods.
According to the law:
- Minimum notice period: 30 calendar days.
- Maximum notice period: 90 calendar days.
The specific number of days an employee must serve depends on the conditions stated in their employment contract registered with the Ministry of Human Resources and Emiratisation (MOHRE).
For example, an employee whose contract specifies a 30-day notice period would generally be required to provide 30 calendar days’ notice before leaving the company.
Similarly, employees with contractual notice periods of 60 or 90 days must ordinarily comply with those requirements.
The agreed notice period generally applies to both employers and employees. However, the law allows arrangements that provide greater benefits or protections to the worker.
Employees are therefore encouraged to review their employment contracts carefully before submitting their resignation or accepting a new job offer.
Are Employees Required to Work During Their Notice Period?
Yes, employees may be required to continue performing their regular duties throughout the notice period if their employer requests them to do so.
Under Article 43 of UAE Labour Law, the employment contract remains legally effective until the notice period has been completed.
During this time, employees retain their contractual rights and are entitled to receive their full salary calculated according to their last wage.
This means that serving a notice period does not automatically reduce an employee’s salary or remove their entitlement to normal contractual pay.
Employees should continue fulfilling their professional responsibilities unless their employer agrees to release them from work or another lawful arrangement applies.
However, employees and employers may reach a mutual agreement to reduce or waive the required notice period, provided the arrangement does not compromise the employee’s legal rights and entitlements.
What Happens If You Leave Without Completing Your Notice Period?
Employees who resign without serving their full contractual notice period may be required to compensate their employer.
Similarly, employers who terminate an employment contract without providing the required notice may have to pay compensation to the affected employee.
Under UAE Labour Law, the party that fails to fulfil the notice requirement must generally pay the other party an amount known as notice period allowance.
This compensation is calculated based on the employee’s wage for the entire notice period or the remaining portion that was not served.
For example, if an employee has a 60-day notice period but leaves after completing only 30 days without an agreed waiver, compensation may be payable for the remaining 30 days.
The requirement is intended to protect both employers and employees from financial losses arising from an unexpected or premature termination of employment.
Can Employees Take Leave to Search for Another Job?
UAE Labour Law provides a specific entitlement for employees whose employment contracts are terminated by their employer.
Under Article 43, an employee in this situation is entitled to one unpaid working day each week during the notice period to look for another employment opportunity.
The employee may select the day they wish to take off but must notify their employer at least three days beforehand.
This provision is designed to give workers an opportunity to explore alternative employment while completing their notice period.
However, the entitlement specifically applies when the employer initiates the termination of the employment contract. It does not automatically extend to employees who voluntarily resign.
What Are the Notice Period Requirements During Probation?
Employees serving a probationary period are subject to different resignation and termination rules under Article 9 of Federal Decree-Law No. 33 of 2021.
The notice requirements depend on whether the employee intends to move to another employer within the UAE or leave the country.
If You Plan to Join Another Company in the UAE
Employees who wish to change employers while still on probation must provide their current employer with at least one month’s written notice.
Under the law, the new employer is generally responsible for compensating the previous employer for recruitment or contracting expenses, unless the parties agree otherwise.
This requirement is intended to regulate employment transfers during probation and address certain recruitment costs incurred by the original employer.
If You Intend to Leave the UAE
Employees who decide to terminate their employment during probation and depart from the UAE must provide their employer with at least 14 days’ written notice.
However, additional obligations may arise if the employee subsequently returns to the country for employment.
If the worker returns to the UAE and obtains a new work permit within three months of departure, the new employer may be required to reimburse the previous employer for recruitment expenses, unless an alternative agreement has been reached.
Employees should therefore consider their future employment plans before resigning during probation.
What Happens If You Resign Without Notice During Probation?
Failing to comply with the legally required notice period during probation can result in financial consequences.
Under Article 9, the party that does not fulfil the applicable notice requirement must compensate the other party for the period of notice that was not served.
The compensation is calculated according to the employee’s wage for the unserved notice period.
In addition, foreign employees who leave the UAE without complying with the probation-related notice requirements may face restrictions on obtaining another UAE work permit.
In certain circumstances, this could include a one-year labour ban, subject to the exemptions and conditions established under UAE employment regulations.
Workers considering resignation during probation should carefully review their legal obligations, provide the required written notice and seek clarification from the Ministry of Human Resources and Emiratisation (MOHRE) when necessary.
