UAE Notice Period Pay: Why Your MoHRE Employment Contract — Not Your Labour Card — Determines Compensation

If you have resigned or been terminated from your job in the UAE, one of the first things you are likely to calculate is your notice period compensation. But what happens if your employer bases that calculation on the date listed on your labour card, which may differ slightly from the date on your official employment contract?

 

Although the difference may appear minor, even a few days can affect the final amount payable — particularly where notice compensation is involved. Under UAE Labour Law, your notice period rights are not determined by your labour card. They stem from your registered employment contract with the Ministry of Human Resources and Emiratisation (MoHRE).

 

Notice periods in the UAE: What determines your rights?

 

The rules governing notice periods and compensation are set out in Article 43 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations.

 

The law requires either the employer or the employee to provide written notice before terminating an employment contract. During this notice period, the employee is entitled to full remuneration.

 

If either party fails to serve the required notice, they must pay compensation in place of the unserved period. This is commonly referred to as payment in lieu of notice.

 

Notice calculation is based on the MoHRE contract — not the labour card

 

A common misunderstanding arises when employers rely on labour card dates to calculate notice entitlements.

However, notice calculation must be based strictly on the registered MoHRE employment contract. The official notice period and any compensation due are determined by what is stated in that contract — not by the labour card or other administrative documents.

 

The specific notice period applicable to you depends on what was agreed in your contract. The law requires that notice must fall within a minimum of 30 days and a maximum of 90 days. Within this legal range, your contract may specify one month, two months or three months. Both parties are bound by the agreed period unless a statutory exception applies.

 

Termination during probation

 

Different rules apply during probation. Under Article 9(1) of the Labour Law, if an employer terminates an employee during the probation period, the employer must provide 14 days’ written notice.

 

This shorter notice requirement applies strictly during probation and does not extend beyond that stage.

 

Article 43: Key notice period rules

 

Under Article 43, either party may terminate the employment contract for a legitimate reason, provided that:

 

• Termination is communicated formally in writing.
• The employment relationship continues throughout the notice period.
• The notice period is between 30 and 90 days, in accordance with the law.

The contract remains valid until the notice period expires.

 

Salary rights during the notice period

 

Article 43 confirms that:

• The employee is entitled to their full wage during the notice period.
• The wage is calculated based on the most recent salary received.
• The employment contract ends only after the notice period has fully expired.

 

Payment in lieu of notice

If either party does not serve the full notice period, compensation must be paid.

Key principles include:

• Compensation is payable even if no actual damage is proven.
• The amount is calculated based on the employee’s last received wage.
• It covers the entire portion of the notice period that was not served.
  

Where to check your official notice terms

If you are uncertain about the notice period that applies to you, the safest course of action is to review your official MoHRE employment contract. A copy can be accessed online through the MoHRE website (mohre.gov.ae).

This document — not your labour card — determines your notice obligations and your entitlement to compensation under UAE law.

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.