UAE labor laws are structured to ensure fairness and transparency. Especially in the workplace for employees and employers. The notice period is one essential aspect of these laws. It regulates the time amount an employee or employer must give before an employment contract termination. This notice period is crucial for both parties. This helps prepare for the changes in the employment relationship. Be it a resignation or dismissal.
The article discusses the:
- Significance of the notice period in the UAE
- The potential consequences of resigning without notice
- The exceptions to this rule, and
- The provisions under the country’s labor laws.
Explore how to resign immediately without notice period and other related issues in this blog!
What is the Notice Period in UAE?
The notice period is a defined period. The time span that an employee or employer must provide before ending an employment relationship. It can be given in writing. However, the duration of the period depends on various factors. These include employment contracts, job types, and length of service.
The notice period is designed to:
- Allow employees time to find a new job or prepare for career transition.
- Give employers sufficient time to find a replacement or make necessary adjustments.
- It ensures a smooth, legal process for both parties.
Both parties can avoid misunderstandings and legal complications by adhering to the notice period requirement.
Stay reading this article if you have these questions in mind can I resign without notice period in UAE? Also, can I resign immediately without a notice period?
How Long is the Standard Notice Period in UAE?
As per law, the notice period can range between 30 to 90 days. It depends on the employment type and contract. However, the standard notice period is 30 days. It can differ depending on the specific terms. These are outlined in the employment contract.
The notice period details are outlined. They are defined in Articles 117 and 118 of the Labor Law. The law specifies that both must abide by the notice period. Unless there are valid reasons for immediate termination.
Resignation without Notice Period UAE
An employee can resign without providing the full notice period in the UAE. To do so, may have consequences unless there is a valid reason. The employer can take legal action and impose penalties. In case, a worker resigns without fulfilling the required notice period.
Valid reasons for resigning without notice include:
Breach of contract by the employer:
If the employer fails to meet the employment contract terms.
Non-payment of salary:
Fails to pay the agreed-upon salary on time by the employer.
Unsafe working conditions:
If the workplace is hazardous. In case, it violates safety regulations.
Unilateral changes to the contract:
If the employer changes the conditions of employment without consent.
Workers may be allowed to resign if any of these circumstances occur. They don’t need to serve the full notice period. This is without facing legal consequences.
Provisions Regarding Notice Periods Under UAE Labor Law
The notice period regulations are clearly outlined. They are defined in Articles 117 and 118 of the UAE Labor Law:
- Article 117: States that both can terminate an indefinite employment contract with at least 30 days’ notice. For day laborers, notice periods vary depending on the length of service:
- 7 days for employees with less than one year of service.
- 14 days for employees with at least one year of service.
- 30 days for employees with over five years of service.
- Article 118: Defines the conditions during the notice period:
- During the notice period, the employment contract remains valid
- Employers must pay employees their full salary. It is based on their most recent wage.
- Employees may be required to fulfill their regular duties during the notice period.
- Neither party can reduce the notice period, and mutual exemption from the notice period is not allowed unless specified.
What is the Notice Period During the Probation Period?
The notice period is shorter for employees on probation. A great way to evaluate if the employment relationship is suitable or not. The probationary worker’s notice period is 14 days. Implied for both limited and unlimited contracts.
Probationary notice periods offer flexibility. They are designed to give employers and employees enough time to assess. They can easily evaluate if the role is a good fit. The notice periods for both apply after the probation period ends.
Factors That Determine the Length of the Notice Period in UAE
Several factors can influence the UAE’s notice period length. These factors ensure that the notice period is equitable for both parties:
Type of employment contract:
Limited and unlimited contracts have different notice period requirements. Limited contracts employees may have a longer notice period. Indefinite contracts typically have 30 days.
Length of service:
Workers with more than 5 years of service have a longer notice period. They enjoy extended periods than those with less time at the company.
Probationary period:
The probation period has its notice period. It is typically 14 days.
Mutual agreement:
Both parties can agree to extend or reduce the notice period. The agreement must be in writing and comply with labor laws.
Can an Employer Terminate an Employee Without Notice in the UAE?
An employer can terminate an employee without notice. Happens under certain circumstances and may involve serious offenses including:
Fraudulent identity or false documentation:
If the employee has falsified their identity or submitted fake documents to obtain the job.
Behavior damaging to the company’s reputation:
Actions by the employee that harm the company’s honor or reputation.
Serious misconduct:
Severe actions by the employee that lead to significant financial or material loss for the company.
Endangering the workplace:
If the employee ignores safety procedures, risking harm to themselves, others, or company property.
Breach of confidentiality:
In case the employee discloses sensitive or confidential company information. This results in damage to the company.
The employer can dismiss the employee immediately without a notice period in these cases.
Consequences of Resignation without Notice Period UAE:
Employees may face legal repercussions if they resign without serving the required notice period. According to Article 119 of the UAE Labor Law:
- The party failing to notice period compliance must compensate the other party.
- Compensation should equal the salary that would have been earned during the notice period. Or the part of it that was not served.
Compensation must still be paid even if the failure to provide notice does not directly cause harm.
Maximum Duration of the Notice Period in UAE
As per UAE Labor Law, the maximum notice period cannot exceed 90 days. This varies based on the contract type and agreement between the employer and employee:
Limited contracts:
The notice period is 30 days to 90 days. This is agreed upon in the contract.
Unlimited contracts:
The standard notice period is 30 days. It can be extended based on mutual agreement.
Notice Period for Employees Under a Limited Contract
Employees on limited contracts have a 30-day notice period. The duration can be extended up to 90 days. However, it depends on the contract’s terms. Employers and employees should clarify the notice period in the employment agreement. It helps prevent any confusion or disputes.
Notice Period for Employees Under an Unlimited Contract
The notice period is 30 days in unlimited contracts. The contract may stipulate a different period. Flexibility is given to extend the notice period through mutual agreement.
Is There a Difference Between Notice Periods for Employers and Employees?
The notice period is a legal requirement for employees and employers. But, there are some differences in how they are handled:
For employees:
Employees are required to give notice before leaving the company. The notice must be in writing, and both parties must sign the termination notice.
For employers: Employers must provide notice if they are ending the employment relationship. Employers may ask employees about their reasons for leaving. They can discuss possible solutions before proceeding with the resignation process.
Both parties must adhere to the notice period. This way, they can comply with the UAE Labor Law and avoid penalties.
Conclusion
UAE’s notice period is a crucial part of the employment contract. It protects the employer and the employee alike. It is essential to understand the implications of resigning without notice and knowing when it is permissible. It helps you navigate the UAE labor laws with confidence. Always refer to the contract terms and ensure compliance with the legal requirements. It avoids legal disputes and penalties.
Know your rights beforehand if you’re considering resigning or employee termination. You should know the obligations regarding the notice period. For further assistance, legal expert consultation in UAE labor laws is highly recommended.
Emiratisation Nafis is a reliable consulting agency operating for years in the UAE while delivering several clients across UAE. Helping you understand the consequences of resignation without notice period in UAE.