Highlights

• The notice period in the UAE provides smooth employee transitions and minimizes disruptions to daily business operations.
• UAE labor law requires notice periods ranging from 14 to 90 days for resignations, terminations, and probationary periods.
• Limited and unlimited contracts impact notice periods, which are accurately tracked using platforms like Pasimo and payroll for business.
• Employees must serve notice; employers must provide notice and pay, with tools like Performance Suite ensuring compliance.
• Best practices include clear contracts, timely settlements, proper documentation, and respectful exit processes for startups and HR teams.

The notice period in UAE is important for smooth employee transitions. It allows employers and employees to plan ahead and reduces disruptions to daily operations. For HR teams, knowing the rules around notice periods is vital to ensure legal compliance, smooth payroll handling, and strong employee relations. Using solutions such as HR software UAE and payroll software helps efficiently monitor and manage notice periods without errors.

In this blog, we highlight the importance of notice periods in the UAE labor market and share practical tips to help HR teams and employers manage smooth and professional employee transitions.

What Is a Notice Period in UAE?

A notice period is the time between informing your employer or employee about the end of employment and the actual last working day. It gives both employers and employees time to plan and hand over work smoothly. In the UAE labor law, the notice period ranges from 14 to 90 days.

Following these rules helps maintain professionalism, supports smooth transitions, and gives employees and employers adequate time to adjust to changes in the workplace.

What Are the Notice Period Rules Under UAE Labour Law?

The notice period rules in UAE are designed to help employees plan their next steps and allow employers to manage staff changes efficiently. As outlined in Federal Decree-Law No. 33 of 2021, both employers and employees are required to follow these rules to ensure compliance, fairness, and smooth workplace transitions.

Important notice period rules:

1. Minimum Notice Period Requirement

Under Article 43, the minimum notice period is 30 calendar days for both resignations and terminations. This written notice must be formally delivered to the other party. The purpose of this period is to give enough time for handovers, replacement hiring, or job searching before the final working day.

2. Maximum Allowable Notice Period

Employers and employees can agree on a more extended notice period if necessary, but it cannot exceed 90 days. Extending the duration helps organizations manage critical projects or transitions more smoothly. However, any period longer than 90 days is only valid if explicitly permitted under UAE labor law.

3. Shorter Notice Period (By Mutual Consent)

In some cases, both parties may desire to shorten the notice period. This is only allowed if employer and employee agree in writing, and the agreement is properly documented and signed. This flexibility allows for faster transitions while ensuring both sides’ consent is respected.

4. Notice Period During Probation (Article 9)

During probation, employers must give at least 14 days’ written notice before termination. Employees who wish to resign must provide 14 days’ notice if they intend to stay in the UAE or 30 days’ notice if they plan to leave the country. These rules promote transparency and prevent sudden disruptions during the trial period.

5. Working During the Notice Period

Employees are expected to continue performing their duties during the notice period. However, the employer may waive this requirement if they prefer the employee to leave earlier. In such cases, the employer must pay the employee for the unserved period to maintain compliance and fairness.

6. Termination Without Notice (Article 44)

Employers can terminate an employee without prior notice in specific situations, such as providing false documents, committing serious misconduct, or continually absenting themselves without a valid justification. These actions must be supported by evidence and noted in accordance with the UAE labor law to ensure fairness and transparency.

7. Resignation Without Notice (Article 45)

Employees may resign without notice if wages are unpaid for over 60 days, or in cases of harassment, abuse, or serious contract breaches. These rules protect workers from unfair treatment.

8. Limited vs Unlimited Contracts

Since 2022, all new employment contracts in the UAE have been limited-term. The previous system of limited and unlimited contracts no longer applies. Regardless of the contract type, every agreement must clearly state the notice period, and both parties must follow it to remain legally compliant.

Types of Employment Contracts and Notice Periods

In the UAE, employment contracts are either limited-term, tied to a residency visa, or unlimited-term, which are open-ended and governed by the UAE Labor Law. The notice period varies by contract type, and platforms like Pasimo along with payroll for business software, help track it accurately and ensure compliance.

Factors Determining Notice Period Length

The notice period length depends on the job type and the employee’s service. The standard period is 30 days, but it can be extended if both parties agree in writing and sign the agreement, ensuring clarity and compliance.

How the Notice Period Differs Between Resignation and Termination

The main difference between resignation and termination is how the notice period is handled. Employees must serve at least 30 days or face deductions, while employers must give written notice and pay the period even if work is not required. Tools like performance suite can help track notice periods and ensure compliance during transitions.

1. If the Employee Resigns: Employees are required to serve the full notice period and continue working. Leaving early may result in salary deductions for unserved days.
2. If the Employer Terminates: Employers must give written notice and pay the whole notice period regardless of whether the employee works it. They must also prepare a final settlement, including unused leave and benefits.
3. Termination During Probation (Article 9): Employers must give 14 days’ notice. Employees must provide 14 days’ notice if staying in the UAE or 30 days if planning to leave the country.

How Do The Payments Work During The Notice Period?

In the UAE, receiving payments during the notice period is straightforward. Employees continue to receive their regular salary and benefits, providing financial stability as they transition out. For global teams, understanding notice period in UAE rules ensures that payments are processed correctly and consistently through the last working day.

Additionally, payments may be adjusted if an employee leaves early or is asked to exit immediately. In such cases, unpaid wages and benefits are settled promptly to ensure a smooth transition, keeping operations and team contributions uninterrupted until the employee departs.

Best Practices for Employers & HR Managers

For startups, following best practices for notice periods ensures smooth transitions, legal compliance, and a positive employee experience. Clear communication, timely settlements, and proper documentation help maintain operational efficiency and protect the organization.

Here are the key steps to implement these practices effectively:

1. Mention notice period rules clearly in every offer letter.
2. Process final dues without delay.
3. Store all termination-related documentation securely.
4. Track resignations and exits using HR systems.
5. Begin exit formalities on day one of notice.
6. Make the exit process clear, respectful, and organized.
7. Maintain employee experience during exit to protect employer branding.

Summary

The notice period in UAE ensures smooth employee transitions, legal compliance, and minimal disruptions. Spanning 14 to 90 days, it varies by contract type and probation. Clear communication, timely payments, and proper documentation are vital. Platforms like Pasimo offer tools for payroll, automated tracking, and streamlined notice period management to support HR teams effectively.

FAQs

What Is Notice Period in UAE?

A notice period is the time between informing your employer or employee about ending employment. It allows both parties to plan work handovers and usually ranges from 14 to 90 days.

In Probation Period, What Is Notice Period in UAE?

During probation, employees or employers must give at least 14 days’ written notice. If the employee plans to leave the UAE, the notice period extends to 30 days.

Is Notice Period Included in Gratuity UAE?

Yes, the notice period is included when calculating end-of-service gratuity. It counts toward the total length of service for final settlement purposes.

Become a part of the Paismo community

Paismo simplifies your tasks with its core HRMS, timesheets, and attendance management, as well as biometric attendance, payroll automation, and leave management system.

Take the first step toward modernizing your HR and payroll processes and explore what Paismo can do for you. Book a demo with our sales team.