In the UAE, the notice period for terminating an employment contract is governed by the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations. This law stipulates that the notice period must be at least 30 days and not more than 90 days, as outlined in Article 43(1). If an employment contract specifies a notice period within this range, it is considered legal and must be adhered to by both the employer and the employee.
For instance, if your employment contract requires a three-month notice period, you are obligated to serve this duration unless you and your employer mutually agree to reduce it. However, if you wish to serve only one month, you would need to negotiate this with your employer. If an agreement cannot be reached, you may have to provide compensation to your employer for the remaining notice period not served, known as “pay in lieu of notice.”
The UAE Labour Law emphasizes that both parties must honor the agreed-upon notice period. If either party fails to do so, they must compensate the other for the full or remaining notice period, as per Article 43(3). This compensation is based on the employee’s last salary.
It is crucial to verify your employment contract registered with the Ministry of Human Resources & Emiratization (MoHRE) to ensure compliance with the stipulated notice period. If your contract specifies a three-month notice, you must serve this period unless otherwise agreed upon. However, if the contract allows for a shorter notice period, you are not obligated to serve more than what is specified.
Mutual agreements can be made to adjust the notice period, but any reduction requires compensation for the unserved portion. If disputes arise regarding the notice period, employees can file a complaint with MoHRE.
In summary, while a three-month notice period is legal if specified in your contract, you can negotiate a shorter period with your employer. However, failing to serve the agreed-upon notice period may result in financial penalties.