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uae labour law resignation limited contract

Resignation Under UAE Labour Law: Limited Contract Perspective

The UAE has a diverse job market where both residents and foreigners have a chance to work. Flexible contracts are the most practical option for businesses, and workers can use them too. Nevertheless, the UAE labor law’s resignation limited contract comes with its specific processes and legal aspects.

In this article, we will cover the different components of UAE labor law resignation limited contract. Therefore, touching the types of limited contracts, notice period requirements, and the instructions for the resignation. As well, we emphasize employees’ and employers’ rights and responsibilities when tendering resignation.

Understanding Types of Limited Contracts in UAE Labour Law

uae labour law resignation limited contract

The UAE Labour Law recognizes two main types of employment contracts. Unlimited contracts with no fixed end date or limited contracts with a set expiration date. Understanding the exact kind of restricted contract, you have is vitally important to the decision to resign.

  • Duration: The contract for a limited term is valid for a maximum of three years from the commencement of employment.
  • Renewal: From that point, both parties have a right to renew the deal. This can be for a comparable or a shorter duration following the end of the contract period.
  • Common Uses: Contract jobs are mainly for the people who work on a project basis, for a limited time, or seasonal positions.
  • Benefits and Protections: Employees based on limited contracts are qualified for many benefits and protections. Such as salary, leave allowances, and gratuities just as those employees based on unlimited contracts.

Types of Limited Contracts

  • Fixed-Term Contract: In a standard limited contract, the term and the date of commencement and completion clearly specified in the contract.
  • Probationary Contract: Short-term (few months) trial period contract. Used to assess performance of an employee before offering the person a permanent job.
  • Project Contract: A restricted contractor tied to the completion of a particular job.

A crucial step is identifying the precise limited contract clause that applies to you. We recommend to:

  • Take a look at your written contract to check what kind of contract it is and how long it will last. If both contract renewal clauses are present or not.
  • In case of doubts, appeal to the Human Resources department for clarification.

By this, you will be able to take considerable action regarding your job. Such as when to resign and the most appropriate time to do it.

Notice Period Requirements for Resignation from Limited Contracts

In order to comply with the UAE labor law resignation limited contract, you must adhere to the notice period guidelines. As mentioned in your employment agreement and UAE Labor Law. Not meeting the requirements may lead to penalties such as delay in visa application or salary deduction.

  • Contractual Notice: Your contract with your employer will include a notice period you must abide by if you choose to resign. This period may be longer or shorter than the statutory minimum.
  • Legal Minimum Notice: A notice period clause can be optional in employment contracts. The UAE Labour Law will determine your minimum notice period if you do not have one. This depends on your salary level:
  • Below AED 4,000 monthly: 30 days’ notice.
  • AED 4,000 or above monthly: 60 days’ notice.

Remember the following important points:

  • The serving notice begins the day of your letter of resignation submission to an employer.
  • During this period of notice, you still have the responsibility of performing your duties and earn satisfactory performance.
  • Your employer has three days to reinstate the usual working hours and to enable you to complete all your duties at the office.
  • You still keep your regular salary and benefits amount for the duration of the notice

There are limited situations where you might not be required to serve the full notice period:

  • Serious misconduct by the employer: This could comprise violations of contract, unsafe working conditions, work refusal, or nonpayment of salaries.
  • Mutual agreement: The notice period can be either completely waived or made shorter by mutual agreement of either party.

If you have any doubt about the process obligations, then contact the MOHRE or seek legal advice.

Step-by-Step Resignation Procedures for Limited Contracts

The UAE labour law resignation limited contract should be done by following a distinct process to ensure a smooth departure and the due compliance with labor laws. Here is a step-by-step guide:

  1. Draft a Resignation Letter:
    • Hand in a formal UAE labour law resignation letter to your employer (usually to the HR department).
    • Announce explicitly that you are resigning and your last working day which falls within the calculated notice period
    • Briefly explain why you have decided to resign (optional).
    • If you wish, state that you are very grateful to join the company (you can type it or not but it is a good tone if you want to be professional).
    • Keep a copy of your signed resignation letter for your records.
  1. Submit your Resignation Letter:
    • Bring your signed letter of resignation to the HR department or your direct supervisor.
    • Confirm your resignation in writing.
    • If there is no hand delivery, be sure to use certified mail or email with a read receipt, so there is proof of submission.
  1. Fulfill your Notice Period:
    • During the notice period, make sure to perform your job tasks with dedication and to the best of your ability.
    • Facilitate the handover process that may include training the replacement, creating documentation, and finalizing existing projects.
  1. Finalize your Employment:
    • As you near the end of your notice period, make sure that you have completed all assigned tasks and projects.
    • Get your final paycheck, gratuity (if applicable), and any remaining leave balances.
    • Secure a clearance letter from the company that confirms your UAE labor law resignation and reflects that no debts are left.

By following these steps, you can ensure a professional and compliant UAE labor law resignation limited contract, minimizing potential issues with your employer or delays in receiving your final dues.

Employee Rights When Resigning from a Limited Contract

The UAE Labour Law ensures certain rights to employees who leave the limited-term contracts. Gain knowledge of these rights, and it will help you go through this procedure easily, as well as ensure your interests.

  • Right to Resign: You are eligible to resign from your work at any time with proper notice. (as per your contract or legal minimum).
  • Fair Treatment During Notice Period: Specifically, your employer cannot retaliate against you. Also, he cannot create a hostile work atmosphere once you notify that you are leaving the company. While you get your regular salary and benefits, your working conditions are not compromised negatively.
  • Gratuity Payment (End of Service Benefits): If the period of continuous service with a limited contract has accumulated to one year or more, you can opt to a termination payment if leaving work. This overtime allowance shall be based on your basic salary and years served.
  • Unused Leave Encashment: Once you resign, you can cash out any unused vacation days or sick leave that was available at the time. As per your contract or company policy stipulates.
  • Experience Certificate: Your company has by law to hand over an experience certificate or service letter to you when you need it. The letter of employment should provide these details: your employment dates, position, and salary.

Keep under consideration the following aspects:

  • Non-Compete Clauses: This may stop you temporarily from taking up another job of a similar nature from a competitor in a specific period after limited contract resignation in UAE. Be sure to review these clauses and seek out legal help when necessary.
  • Settlement Agreements: In some cases, you and your employer may reach an agreement through a settlement that modifies the regular notice period or gratuity calculations of the employment laws.

Employer Responsibilities During Resignation from Limited Contracts

In the case of UAE labour law resignation limited contract, employers have the explicit legal duties to ensure transition is smooth and facilitate the proper observance of labor laws. Next we will describe the key employer obligations:

  • Accepting the Resignation: The employee who has submitted a formal letter of resignation should receive a confirmation from the employer that the resignation has been accepted.
  • Notice Period: The employer shall consider compliance with the period of notice stated in the employment contract or the minimum specified by the law. During this time, the employee retains their right to work and receives their regular salary and benefits.
  • Handover Process: The employer should make the passing over simple. This could be for example, identifying a replacement and training them.
  • Final Settlement: The employer’s last responsibility is to settle all the employee’s dues on their last working day. This includes:
    • Final payment of salary, including overtime or bonuses if any are accrued.
    • Salary and time-based payment of gratuity (if applicable), if applicable.
    • Utilization of any vacation or leave without pay (LWP) as per company’s rules and regulations.

Additional Responsibilities:

  • Clearance Letter: The employer has to give the acceptance of the resignation letter. Which should mention the employee’s resignation date, position held, and also no repo due.
  • Experience Certificate: On written request, the employer is to provide the employee with a certificate of service or an experience letter recording the employee’s employment details.
  • Maintaining Professionalism: The employer should try to behave in a professional manner and treat fairly even if the resignation comes unannounced or inconveniently.

Through fulfilling such duties, employers could be able to guarantee a working environment in which the resignation procedure is compliant with the law and in a manner that gives the employees the feeling that they leave a company professionally.

Strategies for Handling Resignation Disputes in Limited Contracts

UAE labor law resignation limited contract can lead to misunderstandings. The conflicts can, therefore, stem from diverse factors. Such as lack of notice periods, unpaid gratuities, or lack of contractual clauses. Here are some strategies to navigate such situations:

Open Communication:

  • Maintain a clear and professional communication channel: Put your cares or grievances to the employee in a written form or directly.
  • Gather documentation: Save your employment contract, resignation letter, payslips, and any other similar docs. Certainly, these can be useful in the future.

Resolution mechanisms:

  • HR Department: they can explicate your organization’s policies and they can also serve as a neutral arbiter between you and your manager.
  • Internal Grievance Procedures: A lot of companies have now developed internal complaint mechanisms that the employees can use to address workplace problems.

External Resolution Mechanisms:

  • Ministry of Human Resources and Emiratisation (MOHRE): The Ministry of Human Resources and Emiratisation is the government body that governs labor and employer relations in the UAE. You have a right to contact these authorities if they are violating your rights during the resignation procedure at your place.
  • Labour Courts: For the most part, you will have to turn to legal filters in the UAE Labour Courts to carry out your unresolved disagreements. This choice is often obliged to hire lawyers and may turn out to be very long-lasting.

Strategies for Employers:

  • Mediation: The use of mediation can be a form of saving time as well as budgeting the cost towards the process of dispute solving. A neutral mediator can assist communication, thus paving the way for any compromise made acceptable for both parties.

When using these tactics, it becomes easier for both workers and employers to have a clear and successful limited contract resignation in UAE, with the legal consequences and disruptions minimized.

The probation period is a vital element in the initial stages of employment in the UAE. It provides an opportunity for both employers and employees to assess suitability and reduce the chance of making a wrong decision before making a permanent jump. However, resigning during this time comes with specific legal considerations you should be aware of:

  • The UAE Labour Law privileges employees who resign during the probation period, offering them a shorter notice period than those who have unlimited contracts.
  • Article 9 of the law requires employers to inform employees verbally of the notice period at least 14 working days before their last working day during probation.
  • Violating the notice period regulations can lead to deductions of your salary or delays for granted visas.
  • Employers are also entitled to terminate your employment during probation without giving a reason or a notice period.
  • Such days will be then compensated to you as worked days and any accrued vacation or sick leave.
  • After a three-month probationary period, your new contract does not allow any other probationary period.

Impact on Future Employment:

  • Due to that fact, the UAE Law does not have a special database of employee resignations, some companies may share information with relocation agencies or other future employers.
  • However, staying on good terms with your former employer and leaving on good professional terms will help you build a good image and potentially avoid complexities in your future job search.

Exceptions and Considerations:

  • If the reason behind your resignation is an unlawful behavior of your employer, you may not have to fulfill your notice period. Which includes health-hazardous working conditions or not getting paid.
  • It is best to seek the advice of a lawyer specialized in UAE labor law when you encounter these kinds of circumstances.

FAQs: Common Questions About Resignation from Limited Contracts

uae labour law resignation limited contract

What happens if I do not give proper notice during my UAE labor law resignation limited contract?

Not respecting the required notice period (30 or 60 days) may lead to penalties. Including visa cancellations that are delayed or deductions from your final pay. In addition, a similar scenario could be when the employer prevents you from getting gratuity if it is applicable.

Can I change my notice period with my employer?

Indeed, you can try to settle on an early notice period, ideally, one that is a little more flexible. This is better achieved if you already have a substitute in place or if the departure does not dramatically affect any ongoing projects.

What is included in the final settlement upon resignation?

Your final settlement should include:

  • Your last monthly salary (total time spent on the job including overtime and bonuses).
  • The amount of your gratuity payment (based on your salary plus service time) must be paid to you within one year or more and you have completed the limited contract.
  • Encashment of any unused vacation or sick leave upon company protocol.

What are my options if I believe my employer is violating my rights during UAE labor law limited contract resignation?

  • File a complaint with the MOHRE.
  • If your situation gets too complicated and you face difficult legal issues, consult with a lawyer. Situations such as unclear terms and conditions, non-compete clauses or conflicts with your employer are good examples.

Can I take up a job with a competitor after resigning?

Such a decision is contingent on the signing of a non-compete clause in your employment contract. Check these clauses over again and contact a lawyer if you need to. We recommend you have a copy of your contract of employment and salary accounts, resignation letter, and any other documents.


In conclusion, UAE labor law’s resignation limited contract makes you think about your legal rights and duties. This article has equipped you to go through this process with confidence, from the presentation of the notice period to the final agreement. By understanding your rights and obligations, you can navigate the resignation process from a limited contract with greater confidence and ensure a smooth transition.

Recall that fostering transparency with your boss and seeking professional legal advice when the need arises is a crucial element that will keep the whole transition process as smooth and stress-free as possible.

Do you have any questions regarding the UAE labor law resignation limited contract? We are here to help! Contact us if you need any help with details or if you would like to discuss your particular case in more detail.


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    Connect Staffing is established by Connect Group to connect you with life-giving opportunities and discover solutions to your tough hiring challenges, whether you’re establishing a career or a business.

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