The United Arab Emirates is an economic powerhouse that employs millions of people worldwide. To ensure the safety and rights of both employers and employees the government has strict rules and regulations in the form of labor laws. One of these labor laws Decree-Law No. 33 of 2021 governs the notice period during the termination or resignation phase.

In this guide, we will find out what is a UAE Labour Law Notice Period, how it works, what are the key things to remember, particularly since the updated notice period rules, and what roles the employer and employee play when the notice period is given.

What Is a Notice Period In UAE?

A notice period in UAE is the time duration that must be provided by the employer or employee when terminating an employment contract. This time serves as a buffer period for both parties to get their affairs in order, like the employer finding a replacement and the employee finding a new job or evaluating his prospects.

Under UAE Labour Law notice period is mandated by the government and is compulsory for a smooth transition, as without it there can be unforeseen and negative consequences for both parties.

Important Things to Know About the Notice Period In UAE

There are a few important things regarding the notice period that both parties need to remember and they are as follows.

• Standard Minimum Duration: The minimum stand duration for a notice period is 30 days and it can only be lowered with mutual agreement between both parties.
• Probation Period: During the probation period if the contract is terminated then the notice period is generally 14 days, but if the employee is resigning then he still needs to give a 30 days notice.
• Written Notice Period: The notice period needs to be in written form with clear reasons for the termination of the contract and should state all the relevant details. UAE labor laws do not allow a verbal notice period and failure to give a written notice period has legal penalties.

Notice Period for Limited Contracts

For professionals working with limited or fixed-term contracts, the notice period in UAE may or may not be given under the following scenarios:

• Termination at End of Term: Unless specifically stated in the contract, the notice period is not given at the end of a term as the duration of the contract is already known to both parties.
• Termination Before Expiry: In case either party wishes to terminate the contract before the official expiry date set in the contract then a 30-day notice period is given. However, if the employee commits a serious breach of contract, then the employer can terminate the contract with a notice period.

Notice Period for Unlimited Contracts

As unlimited contracts have no set date for the expiry of the employment contract, the notice period rules slightly differ from limited contracts and are observed in the following ways.

• Standard Notice Period: The Standard Notice Period works the same as the limited contract and if either party wants to terminate the contract, they need to give a 30-day notice, before the contract can be terminated:
• Negotiated Notice Period: If both parties agree, they can extend the standard Notice Period from 30 days to 90 days and no more. This can be beneficial for both parties as it gives them both a longer transition period, meaning the employee has more time to find another job and employer a replacement.
• Termination Without a Notice Period: Similar to the limited contract if the employee is found to commit a serious breach of contract, then the employer is under no obligation to give a notice period. Breach of contract may include theft, dishonesty, or repeated violations of workplace regulations.

Exemptions to the Notice Period

White the notice period in UAE is mandatory exemptions can be given in the following scenarios:

• Official Misconduct: As mentioned before if the employee repeatedly violates workplace regulations, and is guilty of serious misconduct like theft or dishonesty then the employer can cite a breach of contract and is exempt from giving a notice period.
• Employee Rights: If the employee feels that his rights are being trampled on in the workplace then he can leave the workplace right away and take legal action against the employer. This may include unsafe working conditions or harassment and if found guilty the employer has to pay compensation to the employee.
• Mutual Agreement: If both parties mutually agree, they can waive the notice period or shorten its duration.

Employee’s Roll During the Notice Period in UAE

Here are some important things to consider for the employee.

• Fully Employment: The employee is expected to keep working during the notice period and fulfill his job requirements unless this is waived by the employer.
• Salary and Benefits: Employee is entitled to all the benefits and complete salary, as long as he is employed and the contract has not been terminated. This includes allowances, access to residence if provided bonuses, and other such entitlements.
• Leave: During the notice period employees are generally not allowed to go on annual leave unless specifically specified in their contract.

Employer’s Roll in the Notice Period in UAE

Similar to the employee the employer also has to consider a few important things and they are as follows.

• Reason for Notification: When providing the notice period, the employer needs to clearly state the reason for the termination of the contract and mention all the relevant details.
• Salary and Benefits: The employer is responsible for paying the salary and all other benefits such as gratuity, bonuses, and other entitlements during the notice period and upon the termination of the contract.
• Compensation: If the employer chooses to end the contract before its official expiry date, and does not want to offer the employee a notice period then it needs to compensate the employee for lost wages of the notice period.
• Record Keeping: To comply with the UAE Labour Law Notice Period, the employer must keep a detailed record of the notice period to avoid any legal disputes.