UAE notice period requirements — 30 to 90 days, payment in lieu, and what trips employers up

The basic 30 to 90 day rule

Article 43 of FDL 33/2021 requires the employment contract to specify a notice period of at least 30 days and at most 90 days. The contract's chosen figure binds both parties symmetrically — the employer owes the same notice it expects the worker to give.

If the contract is silent on notice or specifies something outside the 30–90 day range, the default 30 days applies. Contractual attempts to extend beyond 90 days are not enforceable.

Wages, leave, and benefits during notice

During the notice period the worker continues to be a full employee in every respect. The wage continues at the same agreed rate. Annual leave continues to accrue. WPS payments must still hit on schedule (see our WPS guide). Health insurance must remain in place.

The worker can use any unused accrued leave during notice, subject to employer agreement on timing. Many employers use this as a way to clear the leave balance — saves the payment-in-lieu calculation at the end.

Payment in lieu of notice

Payment in lieu is calculated on the total wage (basic + allowances), not just basic. So a worker on AED 15,000 total / AED 10,000 basic, with a 30-day notice, is owed AED 15,000 in lieu — not 10,000.

Garden leave

Garden leave is the middle ground: the employer says"stay home, we'll keep paying you, but don't show up at the office or do any work." It's used when the employer wants the worker out of sensitive operations during their notice but still wants the notice period's legal effect (confidentiality, non-compete, no immediate competitor start, etc.).

Garden leave is permitted in the UAE provided the contract allows it or the worker consents. The worker remains bound by their employment obligations (confidentiality, non-solicit, non-compete clauses) for the duration. Annual leave still accrues. The relationship formally ends only at the conclusion of the notice period.

Probation is treated separately

The 30–90 day notice rule under Article 43 applies only after probation has been completed. During probation, much shorter notice applies under Article 9:

• Employer terminating during probation:14 days' written notice.
• Worker resigning during probation, leaving the UAE:14 days' written notice.
• Worker resigning during probation, moving to another UAE employer:1 month's written notice — and the new employer compensates the original for recruitment costs.

See the full probation guide for the detail.

What about end-of-service entitlements?

Notice runs in parallel with end-of-service calculations — it doesn't replace them. At the end of the notice period (or on the same day, if paid in lieu) the employer must still settle:

• All unpaid wages up to the final day, via WPS.
• Cash in lieu of any unused accrued annual leave.
• End-of-service gratuity if the worker has completed at least 1 year of service.
• Repatriation costs (one-way air ticket to home country) for workers entitled under Article 53.

All of these must be paid within 14 days of the end of the employment relationship.

Common mistakes

• Asymmetric notice in the contract. Contracts that demand 90 days from the worker but offer 30 days from the employer aren't enforceable — Article 43 binds both sides to the same number.
• Calculating payment in lieu on basic only. It's the total wage. Underpaying here is a common MOHRE complaint trigger.
• Forgetting that leave still accrues. Workers on a 90-day notice accrue ~7.5 days of additional annual leave during the period, which has to be paid in lieu if unused.
• Treating "serious misconduct" dismissals as needing notice. Article 44 terminations for defined serious misconduct can be immediate without notice or gratuity — but the procedure must be followed precisely. Doing this wrong opens the employer up to bigger claims.

Related resources

• UAE probation period rules
• End-of-service gratuity (EOSB) calculator
• Wage Protection System (WPS) deadlines