UAE redundancy: Can you skip your notice period on being terminated or do employees have to serve it under UAE Labour Law?
When an employee is let go due to redundancy (business restructuring or cost-cutting) in the UAE, a common question arises: Can the employee skip the notice period and leave immediately? The short answer is no, not without consequences. UAE labour law clearly sets out rules about notice periods that apply even in redundancy cases and both parties must understand their rights and obligations.
Notice periods are mandatory in the UAE, even for redundancy
Under Federal Decree-Law No. 33 of 2021 on employment relations, either party (employer or employee) can terminate a contract for a legitimate reason but must first give written notice and the employee must usually continue working during the notice period unless both sides agree otherwise.In redundancy cases, being let go due to organisational changes does not automatically exempt the employee from working or honouring the notice period, the law makes no special exception just because the reason is redundancy. If an employer requests the employee to work through the notice period, the employee is generally required to comply.
What happens if the employee refuses to serve the notice period in the UAE?
If an employee refuses to work the notice period after being told to do so:
- They are obligated to pay the employer compensation equivalent to the salary for the full notice period or the remainder of it. This is known as the notice period allowance under UAE law.
- The employer can also file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE) if the employee refuses to serve the notice period, and the matter may be decided by a labour court.
- Importantly, even if the refusal does not cause actual financial loss to the employer, compensation is still due simply because the notice period was not honoured.
In practice, the notice period is typically between 30 and 90 days, depending on what your employment contract specifies; it must never exceed 90 days under UAE law.
Notice period rules work both ways in the UAE
The law is symmetrical: it applies to both termination by the employer and resignation by the employee. That means:
- An employee must serve the agreed notice period if they choose to leave, unless the employer agrees to shorten it.
- Failure to honour the notice period can result in “pay in lieu of notice”, where one party compensates the other instead of serving the period in full.
- In all cases, proper written notice is required, verbal or informal communication is not sufficient under the employment law.
For employees terminated for redundancy, this means that the notice period still applies just as it would in any formal termination, and employers generally cannot force an employee to leave immediately without paying for the notice period if they do not want to serve it.
What about job search leave in the UAE?
An employee who has been terminated, including for redundancy, is entitled to one unpaid day off per week during the notice period to look for new work, provided they notify the employer at least three days in advance of taking this day off. This provision balances business needs with employee welfare, especially in redundancy situations where finding a new job is a priority.
Best practices for employers and employees in the UAE
For employers:
- Clearly state the notice period in the employment contract and ensure it adheres to the minimum 30- to 90-day rule.
- Issue written termination notices with the reason (e.g., redundancy) and the notice period requirement.
- Be prepared to seek compensation through MoHRE or labour courts if employees refuse to serve the required notice.
For employees:
- Review your contract carefully; the agreed notice period is legally binding.
- If you wish to leave earlier, negotiate with the employer for mutual agreement or be ready to pay the salary in lieu of notice.
- Remember your one unpaid day off per week to hunt for a new job during your notice period if demanded to serve it.
In the UAE, even if you are let go due to redundancy, you generally cannot unilaterally skip your notice period if the employer asks you to serve it. The law requires notice periods to be respected and compensation to be paid if one party fails to observe them. Whether you are entering redundancy discussions or planning a resignation, understanding your rights and obligations and working them into your contract and exit planning is essential for a smooth and legally compliant transition.
