Receiving a new job offer can be thrilling, but it can also be stressful if the new employer expects you to start immediately. Here’s how to manage the notice period at your current job when you need to transition quickly.
Understanding the UAE notice period requirements
In the UAE, the private sector is regulated by Federal Decree-Law No. 33 of 2021, commonly known as the UAE Labour Law. This law mandates that both employers and employees must provide a written notice when ending an employment contract. The notice period, which typically ranges from 30 to 90 days, ensures a smooth transition and allows employers time to find a replacement.
What happens if you don’t serve your notice period?
If you fail to serve your notice period, you might face financial liabilities. The UAE Labour Law requires you to compensate your employer for the portion of the notice period you do not serve, known as ‘payment in lieu of notice.’
Senior legal counsel Zeiad Yehia from Kashwani Law Firm explains in a Gulf News report that compensation is due even if the lack of notice doesn’t cause any direct harm to the employer. This compensation is equivalent to your full wage for the notice period, including any allowances.
Calculating the notice period allowance
The compensation you owe is based on your last wage, regardless of whether you are paid monthly, weekly, daily, or hourly. This means your gross salary, including all allowances, will be considered when calculating the amount.
Options for managing your notice period
Negotiate an early release: If you have a good relationship with your current employer, discuss your situation with them. They might agree to a shorter notice period without requiring compensation, especially if you can help find or train a replacement quickly.
Prepare to pay compensation: If negotiation isn’t possible, be ready to compensate your employer. This can be arranged by deducting the amount from your final settlement or through a direct payment, as per your agreement.
Legal resolution: In cases of disagreement, the issue might be taken to court. The court will determine the appropriate compensation based on your contract and the UAE Labour Law.