If the employer ends the job contract, the employee is entitled to one unpaid day off each week during the notice period to seek new employment opportunities.
Employment transitions, whether due to termination or resignation, can be complex. The notice period plays a crucial role in ensuring a smooth departure for both employers and employees, facilitating an organized handover of responsibilities, and safeguarding the interests of both parties.
In the UAE, either an employer or an employee can terminate a job contract by serving a notice period specified in the agreement. This process involves giving the other party a written notice, thereby enabling an orderly exit or transition.
Understanding the Notice Period
The notice period is vital for maintaining an effective work environment. This article explores the intricacies of the notice period in the UAE, the legal framework, and best practices for employers and employees.
Termination of Employment Contracts
According to UAE labour law, an employment contract may be terminated under the following circumstances:
- The contract expires and is not extended or renewed.
- Both employer and employee mutually agree in writing to end it.
- Either party wishes to terminate it, provided they observe the provisions of termination and the agreed notice period.
- The employer dies, and the contract is related to the entity.
- The employee dies or is permanently unable to work, as certified by a medical entity.
- A worker receives a final court judgment with a freedom-restricting penalty for at least three months.
- The establishment closes permanently, per UAE legislation.
- The employer becomes bankrupt, insolvent, or faces economic or exceptional reasons preventing the project's continuation.
- The worker cannot renew the work permit for reasons beyond the employer's control.
Employee Rights upon Termination
An employee may terminate the contract without notice if the employer does not fulfill the contract's conditions, assaults the employee, or assigns work without consent.
If an employer fails to serve the notice period, they must compensate the employee with an amount equal to the salary for the entire notice period or the remaining part thereof.
Conditions for Terminating the Contract
Either party can terminate the contract for any legitimate reason, provided the following conditions are met:
- Written Notification: A written notification must be given to the other party.
- Notice Period: The terminating party must serve a notice period of 1 to 3 months (30 to 90 days).
Additional provisions include:
- Work Requirements: The agreed work must be performed during the notice period.
- Full Wage Entitlement: The worker is entitled to their full wage during the notice period.
- Job Search Leave: If the employer terminates the contract, the worker is entitled to one unpaid leave day per week during the notice period to search for another job.
- Failure to Serve Notice Period: If a party fails to serve the notice period, they must pay the other party an allowance equal to the worker’s wage for the full notice period or proportional to the remaining period. This allowance is calculated based on the last wage received by the worker.
The notice period may be reduced or exempted by mutual agreement between the two parties, without infringing on any party’s rights.
Termination During Probation Period
In the UAE, an employer may place an employee on probation for up to six months. The employer can terminate the contract during this period by serving a 14-day notice, provided there is no breach of contractual obligations.
An employee wishing to resign and join another employer in the UAE during probation must serve a one-month notice. The new employer must compensate the current employer for recruitment or contract costs.
An employee may also resign by serving a 14-day notice if they intend to leave the UAE.
If either party fails to serve the notice period during probation, the party that fails must compensate the other.
Understanding these processes and legal requirements ensures a smooth and fair transition for all parties involved in employment contracts in the UAE.
News Source: Khaleej Times
