What does New UAE Labour Law Say About Notice Period ?

The new labour law – Federal Decree-Law No. 33 of 2021 on the regulation of labour relations – has updated the regulations for the private sector in the UAE. The new law replaces Federal Law No. 8 of 1980 and its amendments, and will come into effect on February 2, 2022. One of the many aspects covered in the new law includes the Notice period Opens in a new tab.and provides details of the rights of the employer and employee when an employee either leave the job of his or her own accord, or if the employer terminates the employee’s contract.

As per the Article 43 of the law: Notice of Termination of Employment Contract:

  1. Either party to an employment contract may terminate the contract for good cause, by giving the other a notice in writing. A notice period of 30 to 90 days needs to be served, regardless of which of the two parties (employer or employee) decides to terminate the work contract. The worker shall perform his duties during the notice period agreed upon in the contract.
  2. Employment contract shall continue in force throughout the notice period and expires with the expiry of the notice period. The worker shall be entitled to his full wage for such period on the basis of his last wage and shall perform his work if the employer so requests. This notice period can be waived off as well, if both the parties mutually agree to do so. The notice period shall be equal for both parties unless the same is in the interest of the worker.
  3. The party in breach of the notice period shall pay the other a compensation called pay in lieu of notice, even if no harm results from the failure of notification. The compensation shall be equal to the wage of the worker for the entire notice period, or the remainder thereof.
  4. Notice pay shall be calculated based on the last wage received by the worker, for monthly, weekly, daily or hourly paid workers, and on the basis of the average daily wage referred to herein for piecemeal paid workers.
  5. If the employment contract is terminated by the employer, the employee can take a working day off per week (without pay), to look for other job opportunities.
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