UAE Employees Must Honour Contractual Notice Period Before Resignation, Labour Law Clarifies

Employees in the UAE who wish to resign from their jobs are generally required to serve the notice period specified in their employment contracts, unless both the employer and employee mutually agree otherwise, according to the country’s labour regulations.

Under the UAE’s Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, both employers and employees are legally bound to comply with the notice clause agreed upon in the employment contract when terminating employment. The law applies to private sector employees working in mainland UAE establishments, including Dubai-based companies.

The legislation states that either party may terminate an employment contract for a legitimate reason by providing written notice to the other party. During this period, the employee is expected to continue performing assigned duties if requested by the employer. The notice period agreed between both parties must not be less than 30 days and cannot exceed 90 days.

The Employment Law defines the “notice period” as the duration specified in the employment contract that both parties are obligated to observe if either side decides to terminate the employment relationship.

However, the law also allows flexibility if both parties mutually agree to reduce or waive the notice period. Even in such situations, employees remain entitled to receive all dues and salary relating to the agreed notice period.

The law further clarifies that the employment contract remains valid throughout the notice period and officially expires only after the period ends. Employees are entitled to receive their full salary during this time based on their last drawn wage.

In cases where either the employer or employee fails to comply with the agreed notice period, the defaulting party may be required to compensate the other side financially. This compensation, referred to under the law as a “notice period allowance”, is calculated based on the employee’s salary for the full notice period or the remaining unserved portion.

The requirement to pay compensation applies even if the party affected by the early termination does not suffer any direct financial damage.

The law also stipulates that the notice period should generally remain equal for both employer and employee unless a different arrangement benefits the employee.

Employees considering resignation without completing the required notice period are therefore advised to first seek mutual agreement from their employer to avoid potential financial liabilities or disputes. Employers and workers may also approach the UAE Ministry of Human Resources and Emiratisation or seek legal advice for further clarification on employment termination procedures and contractual obligations.

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