What is a Notice Period?

There have been lot of confusion and queries with regard to notice period. In this post I will attempt to shed some light on what is a notice period.

So you have been working in a company for some time and want to resign. You could resign today and go tomorrow. But who will take care of the responsibility that you have been handling? This is where the notice period comes into picture. Also your company needs time to find a replacement for your position. A notice period is the time between your resignation and your last day of working at a company or organisation.

What does UAE Labour Law say?

As per Article 117 of UAE Labour Law, the employer and employee may terminate the employment contract with unlimited period, for a valid reason at any time after conclusion of the contract by written notice duly given to other party, thirty days (30 days) at least prior to termination. However, your actual notice period may vary according to the complexity of your work and what is mentioned in your contract.

In respect of daily wage employees period of notice shall be as follows:

·         On week in the employee has worked for more than six months but less than one year.

·         Two weeks if the employee has worked for at least one year.

·         One month if the employee has worked for at least five years.

What about salary during the notice period?

The employee is entitled to full salary during the notice period. This is clearly written in the Article 118 of the UAE Labour Law. The employee must also work during the notice period as usual. A notice period can not be decreased but it can be increased if both the parties agree to it.

What if I am unable to serve the notice period?

If either of the parties has failed to serve the notice period, the failing party should pay the other party “Compensation in lieu of notice” indemnity. This is mentioned in the Article 119 of the UAE Labour Law.

Notice period during probation:

An employer can terminate an employee during the probation period with One day notice period. However, in the UAE Labor Law it is not clearly stated what if employees wanted to terminate contract during probation period. However, most organisations do mention a clause of termination of labour contract during the probation period by either party and it is usually One day.

Article 129 of UAE Labor Law:

If the non-national employee has notified the employer of his desire to terminate the contract with unlimited period and has absented himself from work before the end of the legal notice period, he may not take up employment elsewhere before the lapse of one year from date of absence from work, even with consent of employer, and no other employer, who is aware of the case may recruit him or keep him in service before the end of such period.