Understanding Notice Period Rules in UAE Employment Law
In the UAE, employers and employees have to respect the notice period agreed in the employment contract when quitting or getting terminated from the job. This is in conformity with Article 43(1) of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, which states:
“Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work shall be performed during the notice period agreed upon in the contract, provided that such period is not less than (30) thirty days and not more than (90) ninety days.” take help from Employment Lawyers in Dubai.
Is a Three-Month Notice Period Legal in the UAE?
Yes, a three-month notice period is legal if it is stated in the employment contract. The law provides for a minimum notice period of 30 days and a maximum of 90 days. Both employees and employers have to respect the notice period set in the contract filed with the Ministry of Human Resources & Emiratisation (MoHRE).If your contract says that you have to serve three months’ notice, then you are legally obliged to do so unless both parties agree to curtail it.
Can You Serve a Shorter Notice Period?
The notice period can be shortened or waived by employees and employers. This is so because Article 43(2) of the UAE Employment Law provides the following;
”The parties may be agreed upon exemption from the notice period condition or reducing its period while preserving all the rights of the worker for the notice period agreed upon in the employment contract, provided that the notice period is the same for both parties unless it serves the interests of the worker.”
If you want to leave early from the period stated, you need to talk to your employer about it. If your employer agrees to it, then you can leave early without any penalty.
What Happens If You Do Not Serve the Full Notice Period?
If an employee fails to serve the full notice period, he has to compensate the employer for the unserved notice period. This is called “pay in lieu of notice”.
Under the Employment Law, Article 43(3):
“The party who did not abide by the notice period shall pay to the other party compensation, which is called notice period allowance, even if the absence of notification does not cause damage to the other party and the compensation shall be equal to the worker’s wage for the full notice period or the remaining part thereof.”
Therefore, if your notice period is three months and you only serve one month, you will have to compensate your employer for the two months remaining. The compensation amount will be based on your last drawn salary.
How to Check Your Notice Period
To determine the exact notice period you must serve, follow these steps:
- Review Your Employment Contract: The notice period should be mentioned in your contract.
- Verify with MoHRE: Make sure that your contract which you have registered with MoHRE align well with the conditions agreed upon.
- Discuss with Your Employer: To reduce the notice period, you should negotiate with your employer and come up with a mutual decision.
What If Your Employer Asks for a Longer Notice Period?
In case your employer is acting against the law and demand a longer notice period than the one provided for by the employment contract. You are only to serve the notice period provided for in your contract.
If your employer demands a longer notice period, you are entitled to report the matter to MoHRE.
What Are Your Rights During the Notice Period?
- You must carry on with your work as per the terms of the employment contract.
- You have a right to your full salary throughout the notice period.
- You can try and resign earlier than the agreed period, but only if the employer agrees with it.
How to Resign Properly in the UAE
If you wish to resign, then do the following:
- Submit a Written Resignation: The resignation letter should be written and the notice period should be stated.
- Complete Pending Work: You should make it a point to meet all the commitments before leaving the company.
- Negotiate the Notice Period: To reduce the notice period, this should be discussed with the employer.
- Request a Final Settlement: It is important that all salaries, gratuity and end of service benefits are settled.
- Collect Your Experience Certificate: It may come in handy in getting a job in the future.
Can Your Employer Terminate You Without Notice?
In certain cases, an employee can be terminated by the employer without notice but only if there is a valid reason such as gross misconduct. Otherwise, the employer must follow the agreed notice period.
Final Thoughts
If your contract requires you to serve a three month notice period, you are legally required to do so unless both parties agree to a shorter period. If you fail to serve the full notice period, you may have to compensate your employer for the remaining days. To avoid legal issues it is always recommended to check your contract, follow the law and if needed, negotiate with your employer. If your employer insists on an unfair notice period, you can complain to MoHRE.
How HHS Lawyers Can Help
At HHS Lawyers, we are employment lawyers in the UAE. We can help you with the following:
- Employment contract review
- Negotiate your notice period
- Filing complaints to MoHRE
- Make sure you get your end of service benefits.
Do you need legal advice? Get in touch with HHS Lawyers in Dubai for professional advice on employment issues in the UAE.
