Notice Period Rules: Key Information for Employees and Employers

3 June 2024

Notice Period Rules: Key Information for Employees and Employers

UAE Notice Period Rules: Key Information for Employees and Employers

The Ministry of Human Resources and Emiratisation (MOHRE) has clarified the notice period rules for employees in the UAE regarding work contract termination. Understanding these regulations ensures that both employers and employees are aware of their rights and obligations.

UAE Notice Period Explained

According to MOHRE, both employers and employees can terminate a contract if they adhere to the specified terms and conditions. The notice period in the UAE must be between 30 and 90 days, during which employees are required to fulfill their duties.

If either party fails to serve the notice period, they must compensate the other with a “notice period allowance,” equivalent to the worker’s wage for the full notice period or proportionate to the remaining duration. This allowance is calculated based on the last wage received by the worker.

“Under The Regulation of Labour Relations Law and its Implementing Regulations, both parties can terminate the work contract as long as they’re complying with the terms and conditions of the notice period.” – MOHRE

Additionally, during the notice period, an employee is entitled to one unpaid day off per week to search for another job, provided three days’ notice is given in advance.

Notice Period Allowance

The notice period allowance is determined by the worker’s most recent wage, whether received monthly, weekly, daily, or hourly. For piece-rate wage workers, it is based on the average daily wage.

The notice period can be reduced or exempted by mutual agreement between both parties without infringing on their rights.

Termination of Contract Without Notice by the Employer

Under Article 44 of the UAE Labour Law, an employer may terminate an employee without notice under certain conditions:

  • Submitting false identity or forged documents
  • Causing substantial material loss or deliberately damaging employer’s property
  • Violating safety instructions
  • Failing to perform basic duties despite warnings
  • Divulging establishment secrets
  • Being intoxicated or breaching public morals at work
  • Assaulting colleagues or the employer
  • Unjustified absenteeism for over 20 intermittent days or more than 7 successive days in a year
  • Illegally exploiting position for personal gain
  • Joining another establishment without following proper procedures

Termination without notice requires a written investigation and the dismissal notice must be justified and handed to the employee in writing.

Termination of Contract Without Notice by the Employee

According to Article 45, an employee may terminate the contract without notice if the employer:

  • Fails to meet contractual or legal obligations
  • Assaults or harasses the worker
  • Instructs the worker to perform fundamentally different tasks without consent
  • Does not remove factors posing grave danger to worker’s safety or health

The employee must notify MOHRE 14 working days before quitting, and the employer must rectify the breach. For harassment or danger, MOHRE and competent authorities should be informed within five working days.

About Guildhall’s Executive Search and Recruitment Services

Guildhall offers top-tier executive search and recruitment services tailored to your business needs. With a deep understanding of UAE labor laws and extensive industry experience, we connect you with the best talent to drive your organization forward. Partner with Guildhall for comprehensive recruitment solutions that ensure compliance and excellence.

 

3 June 2024

Notice Period Rules: Key Information for Employees and Employers

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