Notice Period in UAE

The notice period is important for employment changes in the UAE’s competitive job market. It is crucial for businesses and employees and helps ensure a smooth transition for all parties involved. Using HR software can simplify HR functions in organizations. In the UAE, the notice period is a set time before an employee leaves work. This guide will help you understand the importance of the notice period in the UAE Labour market.

What Is The Notice Period In UAE?

In UAE Labour Law, a notice period refers to the advance notification required before termination of employment. This notice period is specified in the employment contract for resignations or terminations, and it facilitates communication and provides the parties involved with time to plan for the future. The UAE government has established laws and regulations through the Ministry of Human Resources and Emiratisation (MOHRE) to protect the rights of employees.

The term of notice is based on UAE Labour Law, which aims to protect employees and employers’ rights and obligations. The law sets the minimum notice period for termination in the UAE between 30 and 90 days. The exact duration depends on the provisions of the employment contract. This legal foundation ensures openness and fairness in the labour market and establishes clear expectations for both parties in an employment arrangement.

Provision For Notice Period Under Law

Articles 117 and 118 of the UAE’s labour legislation specify the notice period in the UAE and its characteristics. Both of them are mentioned as follows:

Under Article 117

The employer and the employee can end the open-ended employment contract if they have good reasons. Both parties must give a notice period of at least 30 days. Workers hired daily must follow different deadlines based on how long they have worked for the company.

• Seven days for personnel with 6 months to less than a year of service.
• Fourteen days for employees with at least one full year of service.
• Thirty days for employees with at least 5 years of employment.

Under Article 118

Article 118 specifies the employment conditions and compensation that will apply during that time. Next, the conditions specified by law will be outlined below:

• The parties’ employment contract will remain in force during the notice until it expires.
• The employer must pay the employee’s entire salary based on his previous remuneration.
• If the employer needs it, the employee must perform regular duties during the abovementioned period.
• Employees and employers cannot shorten the stipulated notification period.
• The employee and the employer are unable to compromise on the exemption period.
• The legislation allows the notice time to be prolonged by agreement between the parties.

Types of Notice Periods in UAE

Unlimited Contract

The notice period of unlimited contracts in the UAE may need to be observed when leaving an organization to pursue a better opportunity. If you need to serve a notice period or want to resign immediately, giving your employer advance notice in the UAE may be a choice.

Giving advance notice allows the employer to prepare for your departure. This includes assigning a replacement and arranging your final settlement.

Employees with unlimited contracts must provide 30 calendar days’ notice before leaving their jobs. Leaving after this period is allowed under Article 121 of the statute, and requiring employees to serve beyond 30 days violates the employment contract.

Limited Contract

In the UAE, an employee’s minimum notice time for a limited contract is 30 days. Before joining the new firm, you must ensure that everything between you and your old workplace is settled.

• The employment agreement will continue in effect even throughout the period.
• If required by the company, the employee must put into effect during this period.

Under Article 43 of the UAE Labour Law, if the notice period is not served, the breaching party must compensate the non-breaching party with a “Notice Period Allowance.”

Article 35 of UAE Labour Law specifies the notice time to be served during the leave of absence. In this case, both parties must mutually agree on the legislation.

Termination

Article 43 states that any party, either the employer or the employee, may terminate the employment agreement for any justifiable cause if they can demonstrate:

• Whichever party is ending the employment contract must offer notice in advance.
• The warning time should be issued one to three months beforehand.

It is important to note that an employer can review the employment contract, regardless of whether it is specified. Additionally, an employer may waive the notice time. The rest of the negotiation may depend on both parties and the scenario.

Notice Period During Probation

In the UAE, an employee can serve a probationary period of up to six months. During this time, the employer can fire the employee by notifying them 14 days in advance, according to Section 9(1) of the Employment Law.

The probation period cannot be extended beyond six months from the employee’s start date. However, an employer may fire an employee by providing 14 days’ advance notice.

Can The Notice Period in UAE Change?

Yes, the Notice period in UAE can be altered, but only with the mutual agreement of the employer and employee. For this agreement to be valid, it must be in writing and signed by both parties. It is difficult to prolong the notice time without both parties’ consent.

In addition, specific scenarios may need a change or an error. To expedite the dismissal process, the employer or the employee may obtain legal advice if either party has committed significant wrongdoing. Nonetheless, you must follow UAE labour and employment rules at this time.

How Does An Employee Work Under Notice Period in UAE?

In the UAE, it is critical to communicate an employee’s notice. The tasks of the employees leaving must be completed by the last day. They continue contributing to daily tasks, allowing the team to function smoothly.

Communication is still important. The departing employee should maintain open communication lines with their management and teammates. This ensures the smooth transition of any outstanding responsibilities or projects. When unanticipated issues develop, timely communication is critical for finding a solution.

Being punctual will not be negotiable. The departing employee must work regular hours to demonstrate their commitment to the job until the end. To maintain a positive work atmosphere, they must follow professional norms, attend regularly, and actively participate.

How Are Payments Under The Notice Period in UAE?

In the UAE, getting money during the notice time is straightforward. Employees continue to receive monthly payments, providing financial stability when they move out. Usually, all employers follow the notice period in UAE adjustment procedures to complete all employee payments on time.

Companies usually honour wage and benefit agreements until the last day of work. No complex calculations or adjustments are necessary. Everything proceeds as usual until the employee goes.

A smooth transition is essential. Throughout notice, the employee remains a vital team member and participates in daily duties. This technique ensures that everyone works together till farewell.

Furthermore, remuneration can be changed if a staff member quits early or the employer releases them immediately. This usually entails settling overdue payments immediately to guarantee a smooth division for both parties.

Process Of Notice Period in UAE By Employee And Employer

When a notice time duration is established, the employer formally tells the employee and defines the duration. It is critical to be precise about the timing, whether you give this notification verbally or in writing.

On the other hand, employees must tell their employer of their intention to depart within the prescribed notice time. Giving written notice to the employer and making sure they are aware of the departure date will help achieve this. Once notice is issued, both parties must carry out their commitments during this time.

Companies usually conduct exit interviews throughout the notification period to learn about the reasons for the departure and gather feedback. On the other hand, workers must be there to assist with the transfer, complete outstanding tasks, and pass on duties.

Being open with one another is critical during this Notice period in UAE. Both employers and staff must be honest and helpful to ensure a smooth leaving and happy transition for all parties involved.

Difference Between Notice Period By Employer And Resignation By Employer

The notice period in UAE differs regarding the maximum time allowed for both parties. So, what is the notice period for resignation in UAE? The period for the employer is typically 30 days, and for the employee, it might range from 30 to 90 days. The completion and notification processes vary slightly between the worker and the business they work for.

On the employee’s side, he sends a formal notification to the worker, alerting him of the term during which the employment connection will stop. According to the legislation, the notification must be in writing, with both parties signing the document. This ensures the legality of the process and allows the employee to get ready to accept the termination of employment.

Factors Affecting Length Of Notice Period in UAE

Several variables influence the notice period in the UAE. They include the sort of work and duration of service, among other things. According to local labour law standards, the typical term is 30 days. Here are the factors that influence the period of notice for termination of employment:

Day workers might work for 7, 14, or 30 days, depending on their length of service. In this example, they would be 6 months to less than a year, a whole year, or more than 5 years.

If the worker is on trial, the duration cannot exceed 14 days.

In the UAE, employers and employees can agree to extend the maximum notice time. The agreement must be in writing and signed by each party. It must adhere to labour law principles and any compliance rules.

Circumstances Employee Contract Gets Immediately Terminated

Article 44 of the New UAE Labour Law addresses employees’ unexpected severance from their jobs. There are a few occasions when a firm may dismiss or fire an employee:

Termination During Probation

Either party may termJnate the agreement during the trial period without providing notice. Consequently, no long-term commitments allow employers and employees to assess how well their working relatJonship matches.

Failure to Perform Essential Duties

The employer reservesJthe right to terminate a worker’s employment without cause if they frequently fail to complete their required tasks and address performance concerns.

Gross Misbehaviour

If employees engage in inappropriate gross misconduct, the corporation may terminate their employment contracts immediately. This includes severe offences like theft, fraud, or other acts that materially violate corporate policies.

Financial Fraud

If an employee is found guilty of fraud or misappropriation, the employer may terminate them without cause. Even though such activity poses a serious risk to a company’s financial integrity, it must be stopped immediately.

Consistent Violation of Conditions

If an employee consistently violates the conditions of their employment contract, the employer may terminate them without cause.

Arbitrary Dismissal In Dubai

Arbitrary dismissal occurs when an employer fires an employee without a good reason. Employers must follow labour regulations, and terminations must have a legitimate basis. This technique ensures no wrongful termination, and the employees are treated fairly.

UAE labor laws protect workers from being fired without cause. Employers must provide written notice and an explanation for termination during the notice period in UAE. This allows employees to understand why they are dismissed and seek recourse if needed.

During this time, the worker does not take a break from work. They are fully compensated and get benefits until the termination takes effect. Illegally sacked workers can file a complaint with the Ministry of Emiratisation and Human Resources. This legal option protects employees by guaranteeing that unlawful terminations are thoroughly investigated.

Conclusion

The notice period applies whether the employee wishes to leave their job or if the employer wishes to terminate the employment connection. If the employee is working relentlessly in the organization, the employer may try employee retention for the betterment of the organization. The Notice period in UAE allows both parties to prepare for the future following the termination of their employment.

The UAE has implemented several reforms to strengthen its economy and protect the rights of its workers. Changes in labour regulations are one example of a move to attract and retain talented workers. Employers who fail to abide by the new legislation will likely face significant fines. However, if they follow the rules, they will gain from increased employee happiness, productivity, and business growth. To simplify all the HR functions in the organization and stay updated with new technology, you may use FactoHR solutions. Schedule a demo with us today!

FAQs

Can An Employee Quit Without Completing The Full Notice Time In The UAE?

The requirements for the period in the UAE are precise: this notice must exist. If an employee resigns without notice and for justifiable reasons, the company may pursue legal action. Because this is a blatant violation of your contract and the law, you may face a ban from working in the nation.

Is It Legal To Resign Without A Notice Period In UAE?

The answer is yes, but only for the reasons specified in the country’s labour laws. You are qualified if you have valid grounds for quitting your employment without notice.

What Happens If A Worker Fails To Give Sufficient Notice Before Resigning In The UAE?

Employers and employees must adhere to the notice period in UAE, except in some instances. If an employee or employer fails to comply with the specified period, they must face a penalty. The standards are outlined in the UAE labour code, specifically Article 119.

What If The Employer Wants To Cancel The Contract Early?

Suppose an employer terminates a contract before the end of the term. In that case, the employee is entitled to “early termination compensation” of at least three months’ remuneration, including salary and allowances (or the remainder of the contract’s term if the period remaining is less than three months).

When Does The Notice Period Begin?

It begins on the day when the resignation is submitted or sent by email. An employee’s resignation is effective from the date it is tendered to the employer. The employer’s consent is not required. Resignation via email is likewise legal as long as delivery can be confirmed.

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