Notice Period in UAE

What is the Notice Period in the UAE?

In the UAE, a notice period refers to the duration an employee must continue working after notifying their employer of their intention to resign, or vice versa, in case the employer decides to terminate the contract. This notice period allows both parties to plan and prepare for the transition.

For employees, this period helps in finishing ongoing tasks and, in many cases, securing a new job. For employers, it provides time to find a suitable replacement and ensure the continuity of operations.

According to the UAE Labour Law, the minimum notice period for termination generally ranges from 30 days to 90 days, depending on the employment contract. This helps ensure transparency and fairness in the employment relationship, with clear expectations set for both the employee and the employer.

Notice Period Examples Across Different Sectors

Notice periods may vary depending on the sector or job role. Here are a few examples to highlight this:

• IT Sector: Ahmed, a software developer, decides to resign. His contract specifies a 30-day notice period. This duration allows him to wrap up ongoing projects while his employer searches for a replacement to ensure a smooth transition.
• Education Sector: Sara, a school teacher, resigns. Her contract requires a 60-day notice due to the longer time needed to recruit and onboard a new teacher, ensuring no disruption to students’ education.
• Healthcare Sector: Dr. Ali, a dentist, is required to give a 90-day notice. Given the specialized nature of his role, his clinic needs sufficient time to recruit a suitable replacement without compromising patient care.

Notice periods are essential for maintaining a positive working environment. They provide employees ample time to transition to new opportunities, reducing any financial and professional stress. Meanwhile, employers benefit from a smooth handover of responsibilities and can make more strategic hiring decisions.

Notice Period for Limited-Term Contracts in the UAE

Since 2022, limited contracts have become the standard for new hires in the UAE. If you are on a limited-term contract, you or your employer are required to give between 1 to 3 months’ notice if either party wants to terminate the contract early.

Additionally, there may be a penalty or financial compensation if one party terminates the contract prematurely, as stipulated in the terms of the agreement. This ensures fairness for both employees and employers, especially since the contract has a fixed end date.

Notice Period During Probation in the UAE

During your probationary period, which can last up to six months, both parties can terminate the employment without adhering to a lengthy notice period, but typically, notice is required for 14 days to 1 month, depending on the company's policy.

It’s important to note that, while the law doesn't mandate a specific notice period during probation, maintaining a respectful approach and following company guidelines helps ensure a smoother process for all parties involved.

Can the Notice Period be Waived or Modified?

Yes, both employees and employers can agree to waive or modify the notice period when circumstances change. This flexibility allows both sides to act in their mutual interest, whether it’s to accommodate an immediate job offer or resolve an unforeseen situation.

Examples of Modifying or Waiving the Notice Period:

• Immediate Job Opportunity: You may receive a job offer that requires you to start sooner than your current notice period allows. If your employer agrees, they might waive or shorten the notice period, especially if a replacement can be found quickly.
• Personal Emergencies: If you face a sudden family emergency or urgent personal situation, your employer might grant you the option to leave early without fulfilling the full notice period.
• Company Downsizing: If a company faces financial constraints or downsizing, both the employer and employee might agree to waive the notice period to reduce costs or expedite the employee’s transition.

Process for Changing the Notice Period:

• Discussion and Agreement: Both parties must agree on modifying or waiving the notice period. This should be done through mutual discussion.
• Written Documentation: Once an agreement is reached, it’s critical to document it in writing, such as through a formal letter or email, acknowledging the agreed-upon terms.
• Legal Considerations: Any changes made should still comply with UAE Labour Law, ensuring that both parties are protected in case of future disputes.

Impact of Not Serving the Full Notice Period

Failing to serve the full notice period can result in financial and legal consequences for both employees and employers. For employees, the employer might withhold the final salary, accrued benefits, or impose penalties as specified in the employment contract. Some contracts also include clauses for financial compensation if an employee chooses to leave before completing the required notice period.

On the other hand, if an employer decides to terminate an employee’s contract without serving the full notice period, they may be required to compensate the employee. This compensation could involve paying the employee for the remaining duration of the notice period or other agreed-upon benefits. It is critical that both parties refer to their employment contract and seek legal advice if there are any doubts.

Common Mistakes Employees Make with Notice Periods

One of the most common mistakes employees make with regard to notice periods is assuming that verbal notice is sufficient. While informing an employer verbally about resignation is courteous, UAE law requires formal written notice to be provided. This written notice should be submitted in a way that provides evidence of the resignation, such as through email or a letter.

Another mistake is failing to read the employment contract thoroughly. Employees should ensure they fully understand the terms of their notice period, including whether it is calculated in calendar days or working days, and whether they are entitled to any leave during the notice period.

When Can an Employer Terminate a Contract Without Notice?

According to Article 121 of the UAE Labour Law, an employer can terminate the contract without notice in certain situations, such as:

• False Identity or Nationality: If the employee provides false information about their identity or nationality.
• Forgery of Documents: If the employee submits fake certificates or documents to gain employment.
• Harm to Employer’s Reputation: If an employee’s actions harm the employer’s business reputation.
• Serious Financial Mistakes: If an employee's mistake leads to significant financial loss for the employer.
• Safety Violations: If an employee violates written safety instructions, endangering lives or property.
• Failure to Perform Duties: If the employee defaults in their duties, leading to substantial material loss for the employer (provided the employer reports the incident within 48 hours).
• Disclosure of Confidential Information: If an employee reveals proprietary information that results in a loss to the company.
• Criminal Conviction: If the employee is convicted of a crime that affects their ability to perform their job or damages their reputation.

These provisions ensure that employers can protect their business and employees from serious misconduct while preserving the integrity of the workplace.

How to Handle a Situation When the Employer Wants to Waive the Notice Period?

If an employer wishes to waive or reduce the notice period, it is important for employees to understand their rights. Employees are not obligated to accept a waiver of the notice period unless it is mutually agreed upon.

If the employer wants to terminate the contract without serving the full notice period, the employee may request compensation for the shortened notice, especially if it impacts their financial situation or job search. This should be discussed and formalized in writing, ensuring that both parties are clear on the terms. A formal agreement, such as a written notice or settlement agreement, should be signed by both parties.

Notice Period During Public Holidays

In the UAE, public holidays are generally considered part of the notice period, unless otherwise stated in the employment contract. If a public holiday falls during an employee’s notice period, it is typically not deducted from the total notice duration. However, it is important to refer to the specific terms of the employment contract, as some companies may adjust the notice period accordingly, especially if the employee is unable to work during that time.

Notice Period for Expats in the UAE

For expatriates working in the UAE, notice periods are generally similar to those for nationals; however, there are additional considerations when it comes to visas and work permits. When an expatriate employee resigns or is terminated, the employer must initiate the cancellation of the work visa or, in some cases, transfer the visa to a new employer. This process can extend the employee’s stay in the country beyond the notice period, depending on the type of employment and the duration of the employee’s visa.

Expatriates should be aware that they cannot leave the country without having their work visa properly canceled or transferred. It is crucial for employees to consult their employer regarding the timeline for visa cancellation and ensure all necessary documentation is completed before departing.

Conclusion

Notice periods in the UAE play a crucial role in maintaining professional relationships and ensuring smooth transitions for both employees and employers. Whether you’re working on a limited or unlimited contract, understanding the specifics of your notice period is essential for navigating any employment changes.

It’s always best to clarify these terms when you sign your contract and communicate openly if modifications are needed. Keeping everything in writing ensures that both parties are protected and that the transition is as smooth as possible.

Easily manage and track notice periods for your employees in the UAE using intuitive HR software, ensuring smooth transitions and compliance with local employment laws.