A notice period is the time between informing your employer you’re leaving (or being told you’re terminated) and your actual last working day. In the UAE, this isn’t just a courtesy – it’s a legal requirement spelled out in the country’s labor law. Think of it as a transition period that gives both parties time to wrap things up properly.
For employees, the notice period means time to hand over responsibilities, complete pending work, and receive final dues. For employers, it’s the window to find a replacement and ensure business continuity. Getting this wrong can lead to financial penalties, employment bans, or legal disputes that nobody wants to deal with.
The rules around notice periods in the UAE changed significantly with the new labor law that came into effect in February 2022. Gone are the days of different rules for limited and unlimited contracts – now everyone follows the same playbook. Whether you’re planning to resign or managing employees, understanding these rules helps avoid costly mistakes.
UAE Labor Law on Notice Period
The current notice period rules fall under Federal Decree-Law No. 33 of 2021, which replaced the old labor law from 1980. Article 43 of this law lays out the basic framework: either party can end an employment contract by giving written notice to the other party.
The law requires this notice to be in writing – a verbal “I quit” during a heated moment doesn’t count. The notice must clearly state the termination date and be delivered in a way that can be proven (email with read receipt, registered letter, or acknowledged hand delivery). WhatsApp messages are generally not considered official notice unless your company policy specifically allows it.
One major change from the old law is that all employment contracts are now considered fixed-term, with a maximum duration of three years. This simplification means everyone follows the same notice period rules, regardless of contract type. The law also protects both parties – employers can’t force immediate departure without pay, and employees can’t just disappear without consequences.
Who Needs to Serve Notice Period?
Pretty much everyone working in the UAE mainland needs to follow notice period rules. This includes:
Private sector employees on standard employment contracts need to serve notice whether they’re resigning or being terminated. The only exception is termination for gross misconduct under Article 44, where immediate dismissal is allowed.
Government employees follow different rules under their respective human resources laws. Federal government workers have their own regulations, while each emirate sets rules for local government employees. These often differ from private sector requirements.
Domestic workers hired through Tadbeer centers have specific notice requirements outlined in their standard contracts. Free zone employees follow the regulations of their specific free zone, which sometimes differ from mainland rules. DIFC and ADGM have their own employment laws with different notice provisions.
Part-time workers and freelancers depend on their contract terms. While the labor law covers them, their notice periods might be shorter or follow different structures based on the nature of their work arrangement.
Standard and Maximum Notice Periods in UAE
The UAE labor law sets clear boundaries for notice periods:
Standard Duration:
- Minimum: 30 days
- Maximum: 90 days
- Must be specified in the employment contract
The 30-day minimum applies even if your contract doesn’t mention a notice period. Courts typically enforce this as the default. Companies can set any period between 30 and 90 days, with many opting for 30 days for junior positions and 60-90 days for senior roles.
Table: Common Notice Periods by Position Level
| Position Level | Typical Notice Period | Common in Industries |
|---|---|---|
| Entry Level | 30 days | Retail, Hospitality |
| Mid-Level | 30-60 days | Most sectors |
| Senior/Manager | 60 days | Corporate, Banking |
| Executive/Director | 90 days | All sectors |
The law prevents employers from setting notice periods longer than 90 days. Any contract clause requiring more than 90 days is considered void, and the maximum 90 days applies instead. This protects employees from being trapped in unreasonably long notice periods.
Notice Period During Probation
Probation period notice rules are completely different and much shorter. The probation period itself cannot exceed six months, and either party can end the employment with minimal notice.
During probation, the required notice is:
- If the employee resigns: 14 days notice required
- If the employer terminates: 14 days notice required
- Exception: For UAE nationals, employers must give 30 days notice even during probation
Here’s the catch – if termination happens in the first month of probation, no notice is required from either party. You can leave or be asked to leave immediately. This gives both sides a true “trial period” to assess fit.
Some companies try to extend probation beyond six months or restart it after a break. This isn’t legal. Once you’ve completed six months with an employer, you’re automatically considered confirmed, regardless of what paperwork says. Any termination after six months requires the full notice period, not probationary terms.
Notice Period Rules by Contract Type
Fixed-Term Contracts (All Contracts from Feb 2022)
Since February 2022, all new employment contracts are fixed-term with a maximum three-year duration. The notice period rules are uniform:
- Either party can terminate with proper notice
- Notice period as per contract (30-90 days)
- Early termination doesn’t require showing cause
- No additional compensation beyond notice period
Unlimited Contracts (Pre-2022, Still Valid if Not Renewed)
Employees still working under pre-2022 unlimited contracts follow the old rules until their contract is renewed:
- 30 days notice minimum
- Up to three months maximum
- Different compensation rules may apply
Part-Time and Temporary Contracts
Part-time employment permits allow different notice arrangements:
- Can be shorter than 30 days if specified
- Must be proportional to working hours
- Multiple part-time employers require separate notices
Freelance and Contractor Agreements
These fall outside standard labor law:
- Notice period as per service agreement
- Can be project-based rather than time-based
- Usually shorter or tied to deliverables
Termination Without Notice
The law allows immediate termination without notice in specific circumstances defined under Article 44 (for employers) and Article 45 (for employees).
Employers can terminate without notice if the employee:
- Uses false identity or forged documents
- Causes serious financial loss through negligence or deliberate action
- Violates safety instructions despite written warnings
- Fails to perform basic duties despite written warning
- Reveals company secrets
- Is convicted of a crime involving dishonesty or morality
- Reports to work drunk or under drug influence
- Assaults colleagues or employer
- Is absent without valid reason for more than 20 intermittent days or 7 consecutive days in a year
Employees can resign without notice if the employer:
- Fails to fulfill contractual obligations
- Commits assault or harassment
- Has knowledge of serious workplace safety violations
- Fundamentally changes job responsibilities without consent
These situations are rare and require solid documentation. Simply claiming one of these reasons without proof won’t hold up in labor court.
Employee Rights and Obligations During the Notice Period
Your rights remain fully protected during the notice period. You’re still a regular employee until your last day, which means the employer can’t suddenly change your terms, reduce your salary, or deny you benefits you normally receive.
Key obligations include continuing to work professionally, completing assigned tasks, and participating in handover activities. You can’t just phone it in because you’re leaving. Courts have upheld employer claims for damages when employees deliberately underperform during notice periods.
You also have the right to look for new employment. The law entitles you to time off for job interviews, though the specific amount isn’t defined. Most companies allow reasonable requests, typically a few hours per week. Document these requests and approvals to avoid disputes.
Confidentiality obligations continue and often extend beyond employment. Using the notice period to copy client lists, download proprietary information, or solicit colleagues for your new venture can lead to legal action. Many employees have faced criminal charges for data theft during notice periods.
Salary and Benefits During Notice Period
You’re entitled to full salary and benefits during the notice period, paid at regular intervals. This includes:
Fixed Components:
- Basic salary
- Housing allowance
- Transportation allowance
- Any fixed monthly allowances
Variable Components:
- Commissions based on actual performance
- Bonuses if eligibility criteria met
- Overtime for actual hours worked
The employer cannot withhold salary during notice period as leverage. Even if there are disputes about final settlement, your regular monthly salary must be paid on time. Any deductions must follow legal limits (no more than 25% for loans/advances).
Medical insurance continues until your last day. If you’re hospitalized during the notice period, you remain covered. Family coverage also continues if it’s part of your package. Some companies try to cancel insurance early – this isn’t legal.
Annual leave continues accruing during the notice period. If you have unused leave, it’s typically paid out in final settlement. However, employers can require you to take pending leave during notice period if operationally feasible.
Working During Notice Period
Unless specifically agreed otherwise, you’re expected to work normally during the notice period. This means regular attendance, normal working hours, and maintaining productivity standards. The notice period isn’t a vacation.
Some companies offer “garden leave” – paying you to stay home during notice. This usually happens in sensitive positions where continued access to systems or clients poses risks. Garden leave must be paid at full salary. You cannot work elsewhere during garden leave unless specifically permitted.
Remote work during notice depends on company policy and role requirements. If you’ve been working remotely, this typically continues. If you’re office-based, employers can require physical presence for handover purposes.
Taking sick leave during notice period requires proper medical certificates. Extended sick leave doesn’t automatically extend the notice period – your employment still ends on the scheduled date unless mutually agreed otherwise.
Early Termination of Notice Period
Both parties can agree to shorten the notice period. This requires written mutual agreement – one party cannot unilaterally decide.
Notice Period Buyout:
Employers wanting immediate departure can pay you in lieu of notice. This means receiving full salary for the notice period without working. The calculation is straightforward: (Daily salary × Remaining notice days).
If you want to leave early, you may need to compensate the employer. The amount equals the salary for the unserved notice period. Some companies waive this for good performers or when they’ve found replacements quickly.
Calculation Example:
- Monthly salary: AED 10,000
- Daily rate: AED 10,000 ÷ 30 = AED 333.33
- Unserved notice: 20 days
- Compensation: AED 333.33 × 20 = AED 6,666.60
Notice Period for Specific Sectors
DIFC (Dubai International Financial Centre)
DIFC Employment Law requires:
- Minimum 30 days, maximum 90 days
- Can exceed 90 days for senior positions with justification
- Different rules for wrongful dismissal
ADGM (Abu Dhabi Global Market)
- Similar to DIFC with 30-90 day range
- Allows longer notice for executives
- Specific provisions for financial services roles
Free Zones
Each free zone has its own regulations:
- DMCC: Follows mainland rules
- JAFZA: 30 days standard
- Dubai South: As per contract, max 90 days
- Sharjah free zones: Typically 30 days
Government Sector
- Federal employees: 30 days minimum
- Local government varies by emirate
- Often longer for senior positions
- Special rules for Emiratis
Domestic Workers
- 30 days standard notice
- Can be waived by mutual agreement
- Special provisions for emergency situations
Calculating Notice Period
Notice periods are calculated in calendar days, not working days. If you resign on January 15th with 30 days notice, your last day is February 14th, regardless of weekends and holidays in between.
The notice period starts the day after the other party receives notice. If you email your resignation on Sunday, the notice period begins Monday. This is why proof of delivery matters – it establishes the start date.
Public holidays and weekends don’t extend the notice period. However, if your last day falls on a holiday, it typically moves to the next working day. Some companies have policies about notice period ending mid-week versus month-end for administrative convenience.
Key Points:
- Always calendar days unless contract specifies otherwise
- Starts day after notice received
- Includes all days (weekends, holidays)
- Cannot be retrospective
Notice Period Pay Calculation
Final settlement during notice period includes several components calculated differently:
Regular Salary:
Paid normally if you work the full notice period. For partial months, it’s calculated pro-rata:
- Daily wage = Monthly salary ÷ 30 (always 30, regardless of actual days in month)
- Amount due = Daily wage × Days worked
End of Service Gratuity:
- 21 days salary per year for first five years
- 30 days salary per year thereafter
- Based on last basic salary
- Calculated up to last working day
Leave Encashment:
- Unused annual leave paid at basic salary rate
- Calculated as: (Annual leave balance × Daily basic wage)
Other Dues:
- Pending expense reimbursements
- Unpaid allowances
- Commission/bonuses earned but not paid
- Any loans/advances deducted
Sample Calculation:
Employee with AED 8,000 salary (AED 5,000 basic + AED 3,000 allowances) resigning after 3 years:
- Gratuity: 3 years × 21 days × (5,000÷30) = AED 10,500
- 15 days unused leave: 15 × (5,000÷30) = AED 2,500
- Final month salary (20 days worked): 20 × (8,000÷30) = AED 5,333
- Total settlement: AED 18,333
Conclusion
Understanding notice period rules protects both employees and employers from legal complications and financial losses. The 2022 labor law simplified many aspects, but proper documentation and following procedures remains crucial.
For employees, serving proper notice ensures you leave professionally, receive full dues, and maintain your reputation. For employers, respecting notice period rules helps retain goodwill and avoid labor disputes.
Remember that employment laws evolve. While this guide covers current regulations, always verify the latest rules through official MOHRE channels or consult legal professionals for specific situations. A properly handled notice period sets the stage for positive future references and maintains professional relationships in what’s often a small business community.
FAQs
Can I withdraw my resignation during the notice period?
Yes, but only if your employer agrees. Once resignation is submitted, the employer isn’t obligated to accept withdrawal. Many companies allow it if a replacement hasn’t been found, but get any withdrawal agreement in writing.
What happens if I don’t serve the full notice period?
You’ll owe compensation equal to salary for unserved days. The employer can file a complaint with MOHRE, potentially resulting in an employment ban. Your final settlement might be adjusted to recover this amount.
Can my employer force me to leave immediately after I resign?
The employer can place you on garden leave or pay you in lieu of notice, but cannot force you to leave without compensation for the notice period. You’re entitled to full pay for the entire notice duration.
Is the notice period different if I’m terminated versus resigning?
No, the notice period is the same regardless of who initiates termination. The only difference might be in final settlement calculations or if termination is for cause under Article 44.
Can I join a new employer during my notice period?
Not while you’re still employed. Your new employment can only start after your current employment officially ends. However, you can sign contracts and complete joining formalities in advance.
What if I’m on vacation when I submit resignation?
Notice period begins when the employer receives your resignation. If you email it while on leave, the notice starts from the next day after receipt. You’re expected to return and work the notice period unless agreed otherwise.
