3-Month Notice in UAE: Legality Check

UAE Notice Period: Is 3-Month Notice Legal Post-Halt?

A reader inquires about the rules regarding notice periods in the United Arab Emirates (UAE). The question highlights a situation where an employee at a Dubai company is being asked for a three-month notice period after the company halts operations. Is this legal? What does the UAE labor law say? What happens if an employee wants to serve only a one-month notice period?

The UAE Labor Law and Notice Periods

According to UAE labor regulations, both the employee and the employer must adhere to the notice period specified in the employment contract. This is governed by Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, Article 43(1). The law states that either party can terminate the contract for a valid reason, but must provide written notice. During the notice period, the employee is obliged to continue fulfilling their job duties, provided the notice period is at least 30 days and no more than 90 days.

What Happens if You Want to Reduce the Notice Period?

The law allows for the reduction of the notice period if both parties agree. The notice period can be shortened if both the employee and employer agree. Importantly, the employee remains entitled to full salary for the notice period even if it is reduced. This is regulated by Article 43(2), which states that the employment contract remains in force during the notice period, and the employee is entitled to full pay. If the parties agree to shorten the notice period, the employee continues to receive all entitlements for the notice period.

What Happens if Either Party Fails to Adhere to the Notice Period?

If either the employee or employer fails to adhere to the notice period specified in the contract, the other party must be compensated. The law defines this as "pay in lieu of notice." According to Article 43(3), if either party fails to comply with the notice period, the other party must be paid the full salary for the notice period or its remaining part. This applies even if the non-compliance did not cause any harm to the other party.

What to Do If the Employer Demands a Three-Month Notice Period?

First, check the employment contract registered with the Ministry of Human Resources & Emiratisation (MoHRE) to see the exact notice period specified. If the contract includes a three-month notice period, the employee must comply. If the contract specifies a shorter notice period, a three-month notice isn't necessary.

If the employee wishes to reduce the notice period, they must reach an agreement with the employer. If the employer is unwilling to cooperate and demands a notice period not specified in the contract, the employee can file a complaint with the MoHRE.

Summary

UAE labor laws clearly regulate notice periods, and both the employee and employer must adhere to the conditions specified in the contract. If an employee wishes to reduce the notice period, they must agree with the employer, but the entitlements for the notice period should remain intact. If the employer attempts to enforce conditions that are not in the contract, the employee has the option to file a complaint with the MoHRE.