Notice Period in UAE: A Definitive Guide in 2025

An employee may decide to resign from their job for several reasons, including pursuing a new and exciting opportunity, moving to a new city or country, or simply having a change of interest and the urge to take a leap of faith in pursuing their hobbies. 

Regardless of the reasons, understanding the key aspects and processes of the resignation process, including the nuances of a notice period, is critical. 

While the rules and duration of a notice period may vary from one company to another, it also depends on the country and its labor laws. 

In this article, we’ll guide you through the notice period rules and regulations in UAE and their significance for employees and employers, especially when it comes to meeting compliance requirements. 

Understanding the Notice Period and Its Importance in UAE

A notice period is the time an employee has to serve their employer from the moment they send their resignation letter until their last working day. At the same time, the employee also needs to serve the entire notice period in case the employer fires them. 

The purpose of a notice period is to ensure that both parties have enough time to prepare for the future. For instance, an employee needs to hand over and explain their tasks and responsibilities to their replacement—giving ample time for a company to find a suitable resource. 

Here is the importance of a notice period in UAE: 

• Ensures smooth work transition for both employers and employees
• Prevents instances of sudden resignations that could disrupt business processes
• Ensures employees receive their due compensation and benefits during the transition
• Helps employers and employees adhere to the UAE labor laws, avoiding penalties
• Clear notice period rules in an employment contract avoid legal complications and misunderstandings
• Demonstrates professionalism, improving the employer’s brand reputation and employee relationships 

Legal Framework Governing Notice Period in UAE

The Federal Decree-Law No. 33 of 2021 governs the notice period regulations in UAE. This law applies to private-sector companies, mainland companies, and free-zone companies. However, specific free zones like JAFZA and DIFC may have variations as they may have their own labor laws. 

The minimum standard notice period, according to this law, is 30 days. For contracts exceeding 2 years, longer notice periods of a maximum of 60-90 days are agreed upon by companies, especially when aligned with the UAE Labor Laws Standards. 

It’s important to note that employees and employers may mutually decide and agree to shorten or extend the notice period in UAE, depending on their needs and requirements, provided the agreement is well-documented in the employment contract. 

The notice period duration often varies depending on the type of contract. Let’s take a detailed and closer look into these. 

Notice Period For Limited Contracts in UAE

A limited contract in the UAE consists of a fixed duration of notice period specified in the employment agreement. Here are the limited contract’s key rules regarding notice period regulations governed by the Federal Decree-Law No.33 of 2021: 

• Unless otherwise stated in the contract, an employee must serve a minimum of 30 days’ notice before the limited contract expires. 
• An employee is expected to serve a maximum of 90 days (3 months) notice period, given it’s explicitly mentioned in the employment contract. 
• In case either parties (employees and employers) decide to terminate the contract without proper notice or valid reason, the non-compliant party needs to compensate with a penalty equivalent to 3 months’ salary or the remaining contract duration. 

Hence, the law requires both parties to abide by mutually and agree upon the rules of the contract. Any deviation or non-compliance with the law results in rightful actions and considerations. 

Notice Period For Unlimited Contracts in UAE

Unlike the limited-term contract, an unlimited contract in UAE is an open-ended employment agreement with no specific expiration date. 

Typically, the notice period for unlimited contracts is 30 days, but it may vary or extend if the employer requires it and if mutually agreed upon by both parties. At the same time, asking employees to work beyond the 30-day notice period, especially without their agreement, is a breach of the contract and a law violation. 

Notice Period For Probation in the UAE

The probation period is a trial period of 6 months in the UAE, during which companies or employers assess an employee’s skills and abilities to determine whether they are suitable for a role. 

Here are the rules that govern the notice period requirements in the UAE as per the Federal Decree-Law No. 33 of 2021: 

• Employers have the right to terminate an employee during a probation period by providing them with a 14-day notice period in advance. 
• At the same time, if an employee decides to join another employer, they must give a 30-day notice period to their current employer. 
• During the probation period, both parties can agree to modify or waive the terms of the notice period, provided that this is documented. In addition, if either party fails to comply with and adhere to the notice period rules, the party that breaches the rules is required to compensate the other for the unserved notice period. 

Employer Obligations During a Notice Period

Employers in the UAE are bound by specific responsibilities and obligations when it comes to an employee’s notice period. Here are the obligations an employer must fulfill to ensure compliance and a smooth transition. 

• Employers must continue paying full salaries to the employees, including allowances during the notice period. 
• Employers must take care of the final settlement of dues and of all outstanding payments. Pending payments due for the days worked by an employee must be paid by the employer. This also includes unused annual leave balance, end-of-service gratuity, pending bonuses, and unpaid overtime hours. 
• Once the notice period ends, or a few days before it does, employers must issue all the necessary documents, including a release or experience letter, an end-of-service letter, a No Objection Certificate (NOC), and a reference letter, which is not mandatory, to the employee. 
• If applicable, employers are also obligated to conduct and initiate the work permit and visa cancellation process once an employee’s notice period ends. The cancellation process should meet the UAE immigration and UAE labor law requirements to avoid legal repercussions and penalties. 
• Employers are strictly prohibited from retaliatory actions, such as mistreating or penalizing employees by withholding salaries, adding additional workloads, and creating a hostile work environment. 
• Employers must also ensure compliance with contractual and legal obligations and prohibit acts like reducing the notice period or terminating an employee before the end of the notice period without a just and valid reason. 

By meeting and fulfilling these obligations, employers not only meet compliance needs but also maintain professionalism and positive employee relationships and boost brand reputation. 

Employee Responsibilities During a Notice Period

Not just employers but employees also need to adhere to certain laws and moral obligations when serving a notice period in UAE. Here’s more detail about the same: 

• First and foremost, employers are expected to continue performing their tasks and duties with full dedication and professionalism, as before submitting their resignations. The employee must complete all pending tasks or hand them over to their designated replacement within the stipulated time. 
• Employees must transfer and hand over all their knowledge and data regarding their ongoing projects to their replacement or colleague and willingly participate in handover training sessions and meetings. 
• Employees must serve their full notice period unless both the employee and the employer mutually agree upon shortening it. Deliberately leaving the company without completing the notice period can lead to legal actions and financial compensation owed to the employer. 
• Employees are expected to be punctual with 100% attendance during the notice period and have a professional attitude to avoid conflicts and disruptions. 
• Employees are legally obligated to protect and safeguard the company’s confidential information even when serving a notice period. 
• Employees must return the current company’s issued properties, like laptops, mobile phones, keys, and ID cards, before their notice period ends. 

Can an Employer Terminate an Employee Without Notice? 

An employer in the UAE can terminate a contract and make an employee serving a notice period go under specific conditions and circumstances. 

Article 44 of the Federal Decree-Law of No. 33 of 2021 governs these conditions. Here are some reasons why an employer can terminate an employee before the end of their notice period: 

1. Gross misconduct 

   When an employee engages in gross misconduct and inappropriate behavior, the employer can instantly terminate the employee without any notice. 

   Such misbehavior includes practices that violate the company’s policies, such as fraud, theft, harassment, or physical violence. 

2. Document forgery

   An employer can terminate the contract and the employee if the employee presents forged documents or false information to secure their job. 

   Examples include submitting fake and forged educational documents, fake medical certificates, counterfeited experience letters, and false claims on professional certifications. 

3. Repeated violation of terms

   Consistently violating the terms and conditions of the employment contract is one of the primary reasons behind terminating an employee without cause. 

   Repeated violations and non-compliance with workplace policies despite prior warnings show a lack of commitment and ignorance on the part of the employee. 

   Examples include disrespectful behavior towards colleagues, poor performance, constant customer complaints, misuse of company property, and data or policy breaches. 

4. Financial fraud

   The employer can remove or terminate the employee if found guilty of financial fraud and misinterpretations. Examples of the same include

   • Embezzlement, where employees either manipulate invoices or divert the company’s funds to their own personal accounts. 
   • Submitting falsified, inflated, and fake receipts for reimbursements. 
   • Conducting payroll fraud by either counterfeiting the number of normal working hours or creating ‘ghost employees’ to collect additional salaries through the payroll system. 

   Financial fraud poses significant threats and risks to the company’s financial integrity; hence, it must be stopped by terminating the employee right away. 

5. Unauthorized absence

   Unauthorized absence from work from more than 7 to 20 consecutive days in a year without any valid reason, especially when the employer is not informed, is a breach of company policy and conduct. 

   Employers have the right to terminate employees and their contracts in such cases. 

6. Failure to perform authorized duties

   An employer can terminate an employee’s position and tenure at work if the employee consistently fails to perform the necessary tasks and authorized duties, especially when the employee holds a crucial and higher position. 

Contract Termination By an Employee Without Notice

Employees in the UAE have the right to resign and leave work without serving their notice period under Article 45 of the Federal Decree-Law if the resignation is based on valid reasons. 

Here are a few reasons why employees may resign without serving notice periods: 

• Non-payment of wages: If the employer fails to pay the employee’s salary for 60 consecutive days, despite multiple follow-ups by the employee, the employee is entitled to resign. 
• Unsafe work environment: If the workplace conditions impede risk and injury and endanger the employee’s health and well-being, without the employer addressing the safety issues, employees have the right to resign without cause. 
• Harassment or violence: When an employee faces repeated instances of workplace harassment, such as verbal abuse, inappropriate comments by colleagues or managers, or physical violence, it justifies the employee’s immediate resignation. 
• Workplace discrimination: If the employee repeatedly faces discriminatory behavior, such as denial of promotions or restricted workplace amenities, based on race, caste, color, religion, gender, or nationality, they are entitled to resign immediately. 
• Breach of contract by the employer: If the employer breaches the terms of the contract and fails to fulfill contractual obligations, such as demanding additional hours of work from employees without mutual agreement or not providing agreed-upon benefits, the employee can end the contract and submit their resignation. 

Can the Notice Period be Changed or Exempted? 

Yes, the employment and labor law in the UAE provides the flexibility to alter or exempt the notice period upon mutual agreement between the employee and the employer. 

Both parties are required to consent in a written notice to either eliminate or reduce the length of the notice period in the employment contract. This agreement must be legally binding and comply with UAE labor regulations. 

Here are a few instances where employees and employers can decide to shorten or waive the notice period: 

• The employee finds an urgent offer that requires immediate joining. Hence, they can request the employer to shorten or eliminate the notice period if there’s not much dependency on them. 
• The employer can decide to waive the employee’s notice period to reduce payroll expenses, especially when the company no longer requires the employee’s services. 
• When the employee’s position is already filled with a capable candidate and the workload has decreased, the employer can decide to waive the notice period upon mutual agreement with the employee. 
• Employees may request the employer to waive or shorten the notice period due to personal reasons and emergencies, such as relocation needs or health issues. 

Mutual agreement to adjust the notice period not only promotes greater flexibility but also fosters a positive and cooperative employment relationship. 

Factors That Determine The Length of a Notice Period

According to labor law, the standard notice period in the UAE is 30 days. However, the length may vary depending on several factors, including the nature of the job, the type of employment contract, and the mutual agreement between the two parties. 

Here are a few factors that determine the length of a notice period: 

• The length or duration of service may affect the notice period, especially for long-term and senior-level employees. For instance, an employee who has been with the company for many years, like over a decade, with a high seniority position may be required to serve a longer notice period to ensure a smooth handover and continued business operations. 
• The notice period may fluctuate based on different industries and the nature of the job. For instance, depending on the length of their employment, day workers might work for 7, 14, or 30 days of notice period. At the same time, legal or financial sectors might have longer notice periods to ensure compliance and protect sensitive information. 
• If the employee is on a trial or probationary period, the notice period cannot exceed more than 14 days as per the UAE labor law. 

Understanding Payment Terms During Notice Period In UAE

An employee’s payment terms during the notice period in the UAE depend on the specific terms mentioned in the employment contract and the labor law. 

Typically, employees are entitled to receive a full salary when serving their notice period, provided they actively work during this time. This salary includes the basic salary and the allowances. 

However, if the employer decides to waive the notice period for reasons like finding a replacement or having minimal to no workload, they must compensate the employee with the full salary equivalent to the notice period. At the same time, if the employee decides to waive the notice period, the employer does not need to pay the employee's salary unless agreed otherwise. 

Moreover, once the employee completes their notice period, the employer is required to provide the full and final settlement to the employee, which includes unpaid salary, leave encashment, and gratuity pay. 

Arbitrary Dismissal in UAE

Arbitrary dismissal in the UAE refers to the act when an employer terminates an employee unfairly without a valid reason, outlined under Article 47 of the Federal Decree-Law no. 33. 

This law protects employee rights and ensures they receive fair treatment from their employers. 

In case of arbitrary dismissal, where employees believe they have been dismissed illegally without cause, they can file a complaint to the Ministry of Human Resources and Emiratisation (MoHRE), which will resolve the issue. 

In case the arbitrary dismissal is proven, employees are entitled to the 3 months’ equivalent salary from their employer, including allowances and other dues payments. 

Common Disputes and Challenges Related to Notice Periods

While labor law provides clear guidelines for serving notice periods in the UAE, disputes and challenging situations may arise in the workplace due to reasons such as miscommunication, non-compliance, or lack of awareness. 

Here are a few common challenges and disputes surrounding notice periods in the UAE: 

• Non-adherence to the notice period contract, like an employee resigning without serving the full notice period or an employer terminating an employee without cause or justification. 
• Disputes over compensation in lieu of notice or over final settlement or gratuity. 
• Handover and work transition disputes, where employers may allegedly claim incomplete handover by an employee during the notice period. 
• Dispute over an employer abusing the notice period for retaliation by assigning excessive or irrelevant tasks to the employee. 
• Disputes arise from ambiguous or vague employment contract terms, such as the mention that either party is allowed to terminate the agreement by providing reasonable notice or payment in lieu of notice, which may lead to confusion and legal disputes. 

Best Practices For Employees and Employers To Efficiently Manage Notice Period Transitions

To avoid disputes and confusion caused by the scenarios mentioned above and ensure a smooth and hassle-free transition process, employees and employers must follow the professional best practices listed below while adhering to UAE labor regulations. 

Best Practices for Employees for Efficient Transition

• Thoroughly read and go through the employment contract to understand your contractual obligations and notice period requirements. 
• Strategically plan and submit the resignation so it doesn’t clash with critical deadlines and projects to avoid disruptions. It’s also important to send a clear and timely resignation to the manager stating the last working day that aligns with the notice period requirements. 
• Employees must clearly and openly communicate their needs, like negotiating the length of the notice period with their employers. 
• Employees must maintain professionalism and diligently fulfill their tasks and responsibilities when serving notice periods, as well as assist in the handover process. 

Best Practices for Employers for Efficient Transition 

• Clearly communicate and guide employees with notice period policies and contracts and formally notify the employees of the commencement of their notice period and its length. 
• Provide employees with a checklist of tasks they need to complete during the notice period, find the potential replacement, and plan handover and transition sessions and training. 
• Adhere to legal obligations and UAE labor laws, and clear all dues and final settlements before the employee’s last working day. 
• Be flexible and open to negotiating the terms and length of the notice period if requested by an employee. 
• Maintain professionalism, avoid retaliatory actions, and conduct exit interviews to gain feedback. 
• Communicate non-disclosure and non-compete clauses with employees before they leave to ensure confidentiality and also restrict employees’ access to sensitive company data and tools once they leave the organization. 
• Maintain thorough records and documentation of employee performance issues, handover activities, and disciplinary actions to support the case in case of disputes. 

Conclusion 

The notice period is an integral phase of employment transition for both employees and employers. 

While for employees, it’s a crucial opportunity to demonstrate their professionalism by completing their duties even during their last days of employment, employers need to ensure a smooth transition and depart the leaving employees with grace and respect to maintain integrity and reputation. 

To avoid disputes and miscommunication, it’s crucial for both employees and employers to abide by the notice period and labor laws in the UAE. To facilitate employment transition and other crucial operations, at Darwinbox, we offer core HR services that automate and make day-to-day HR operations a breeze. 

Whether you need help with payroll, leave management, or simply ensuring compliance with national and international laws, our intuitive solutions, like the workforce management suite, advanced time and attendance management system, seamless payroll management solution, and compensation management, take care of these redundant tasks. 

They ensure smooth business operations by automating notice period processes and tasks like payroll calculations, employee attendance and pending annual leaves, allowing you to focus on more intricate and complex tasks. 

Schedule a demo today to try these solutions out and learn more.

FAQs

Can an employee use their annual leave during the notice period in UAE?

Typically, employees are exempt from taking leave during the notice period because they are committed to completing the work before they leave. However, if both parties mutually agree, employees can take a few days of leave; otherwise, the accrued leaves are paid out in the final settlement.

Does the notice period apply to part-time or freelance workers in the UAE?

The notice period for freelance or part-time workers depends on the terms and conditions outlined in their specific contracts and agreements. Standard labor law does not have any notice period rules for part-time workers.

Can employees take a sick leave during the notice period?

If the employer agrees and the employee submits a proper leave application with valid medical proof, the employee can take sick leave during the notice period.

Is mentioning the reason for resignation in the notice period mandatory for employees?

While it’s not mandatory to explicitly state the reason for resignation in the notice period letter, it’s a best and professional practice to do so to provide clarity and maintain a positive employment relationship with the employer.