In the UAE, notice periods may vary depending on whether termination is initiated by the employer or employee and whether it is for a valid legal reason under labour law.
UAE employment: Can notice periods differ depending on the cause of termination?
Question: I lost my job in the UAE due to performance-related reasons rather than misconduct. What notice period applies in my case, and how will my end-of-service benefits be worked out?
Answer:
Under UAE labour regulations, either the employer or the employee is permitted to end an employment contract for a lawful reason, provided written notice is given. The notice period must be served while the employee continues working and should fall between 30 and 90 days, depending on what is stated in the employment contract. This is outlined in Article 43(1) of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships.
The law specifies that both parties may terminate a contract for legitimate reasons as long as written notification is provided and the agreed notice period—no shorter than 30 days and no longer than 90 days—is respected.
Regarding end-of-service benefits, gratuity becomes payable only after an employee completes a minimum of one year of uninterrupted service. Article 51(2) of the Employment Law clarifies that full-time foreign employees who meet this requirement are entitled to gratuity calculated on the basis of their basic salary.
The calculation is structured as follows: employees receive the equivalent of 21 days’ basic pay for each year of service during the first five years, and 30 days’ basic pay for every additional year beyond that period.
If an employee’s service ends before completing one full year, no gratuity is due.
In addition, employers are legally required to settle all outstanding salaries and contractual benefits within 14 days from the date the employment ends. This obligation is stated in Article 53 of the Employment Law, which mandates the timely payment of wages and any other entitlements outlined in the contract, company policies or related regulations.
In summary, the applicable notice period depends on what is specified in the employment contract, provided it complies with legal limits, while end-of-service gratuity applies only after one year of continuous employment. Should there be any unpaid dues or disputes, employees are advised to first raise the issue with their employer and, if unresolved, file a complaint with the Ministry of Human Resources and Emiratisation.
Ashish Mehta is the Founder and Managing Partner of Ashish Mehta & Associates and is licensed to practise law in Dubai, the UK and India. More information about his firm is available on its official website. Readers may submit legal queries via email or by post to the Legal View section at Khaleej Times.
Employees are also advised to carefully review their employment contracts to understand any specific clauses related to termination, notice periods or performance-related exits. Some contracts may include provisions for payment in lieu of notice, allowing either party to compensate the other instead of completing the full notice period. However, such arrangements must still comply with UAE labour law. Workers should keep copies of their contracts, salary slips and termination letters, as these documents may help clarify entitlements and serve as evidence in the event of a dispute.
Legal experts further recommend that employees maintain clear communication with their employer during the notice period to ensure a smooth transition. Completing handovers, returning company property and fulfilling assigned duties can help avoid delays in final settlements. In cases where disagreements arise over notice periods or gratuity calculations, employees can seek guidance from authorised legal professionals or approach MoHRE for mediation. Prompt action and proper documentation often lead to quicker resolutions and help protect the rights of both parties under UAE employment regulations.
