The Ministry of Human Resources and Emiratisation (MOHRE) in the UAE recently clarified the rules regarding notice periods and contract termination, shedding light on key aspects affecting both employers and employees.
Notice Period Regulations in the UAE
Under the Regulation of Labour Relations Law and its Implementing Regulations, both employers and employees have the right to terminate a work contract, provided they adhere to the terms and conditions of the notice period.
Duration and Duties During Notice Period
Notice periods in the UAE typically range between 30 and 90 days. During this time, employees are obligated to fulfil their duties as usual. Failure to serve the notice period requires the defaulting party to pay a “notice period allowance” equivalent to the worker’s wage for the full notice period or proportionately for the remaining period.
Compensation and Job Search Allowance
When an employer terminates a contract, the employee is entitled to one unpaid day off per week during the notice period to search for alternative employment, given three days’ notice in advance. The allowance for the notice period is calculated based on the worker’s most recent wage.
Flexibility and Mutual Agreement
The notice period may be reduced or waived entirely upon mutual agreement between the employer and employee, ensuring the protection of both parties’ rights.
Termination Without Notice: Employer and Employee Rights
The UAE Labour Law outlines conditions under which either party may terminate a contract without notice. For employers, these include cases of falsified documents, substantial material loss, safety violations, repeated negligence, and other specified breaches. Employees, on the other hand, may terminate contracts without notice in response to breaches of contractual or legal obligations by the employer, workplace harassment, unauthorised work changes, or failure to address safety concerns.
Legal Procedures for Termination
Termination without notice must follow strict procedures, including a written investigation and notification to the concerned party. Dismissal notices must be justified, written, and duly handed over to the employee.
Understanding notice period regulations and contract termination rights is essential for both employers and employees in the UAE. By adhering to these guidelines, businesses and workers can navigate employment transitions with clarity and fairness, ensuring a harmonious work environment for all.
