Notice period pay in the UAE follows a clear legal process, yet it remains one of the most disputed parts of employment termination. The issue is not that the law is unclear. The issue is that many people look at the wrong document.
This explainer walks through how notice period pay works from start to finish, which document governs each step, and what both employees and employers should follow to stay compliant.
Contents
- The one document that governs notice period pay
- Understanding Notice Period Pay
- What happens if there is a dispute
- What employees should do now
- What employers must correct immediately
- Summary: How Notice Pay Period Works
The one document that governs notice period pay
Every notice period calculation in the UAE starts and ends with the MOHRE registered employment contract.
This contract is the legal agreement approved by the Ministry of Human Resources and Emiratization. It defines the rights and obligations of both parties and is the document used by MOHRE and the labor courts when disputes arise.
The labor card or work permit does not serve this function. It is an administrative record, not a contract.
This distinction is where confusion often begins, but legally, the hierarchy is settled.
Understanding Notice Period Pay
Step 1: Confirm the notice period written in the contract
UAE Labor Law requires that every private sector employment contract includes a notice period.
The rules are strict:
- Minimum notice period: 30 days
- Maximum notice period: 90 days
The exact number of days is not assumed or calculated using visa dates. It is explicitly written in the MOHRE contract.
This applies whether:
- The employee resigns
- The employer terminates
- The contract ends early
If it is written in the contract, it applies.
Step 2: Decide whether notice will be served or paid
Once termination begins, only two scenarios are legally recognized.
Notice is served
The employee continues working during the notice period and receives their full wage as usual.
Notice is not served
The party ending the contract must pay payment in lieu of notice, equal to the full wage for the unserved notice period.
This payment is mandatory. It does not depend on fault, intent, or business reasons.
Step 3: Calculate notice pay using the correct wage base
Notice period pay is calculated using the last wage actually received, as defined in the MOHRE contract.
This typically includes:
- Basic salary
- Any regular allowances that are contractually defined as part of the wage
What is not used:
- Labor card issue or expiry dates
- Visa dates
- Internal HR timelines
- Offer letters not registered with MOHRE
The contract wage is the only legal reference point.
Step 4: Apply special rules if the employee is on probation
Probation periods follow separate legal rules.
During probation:
- Employer termination requires 14 days written notice
- Employee resignation requires:
- 14 days notice if leaving the UAE
- 30 days notice if joining another UAE employer
These rules are stated in the law and reflected in the MOHRE contract. The labor card does not contain probation terms.
Salary must still be paid for the notice days served during probation.
Where MOHRE contracts and labor cards fit in this process
Understanding where each document sits removes most disputes.
MOHRE employment contract
Falls under: employment law and contractual rights
It governs:
- Notice period length
- Notice period pay
- Salary and allowances
- Termination obligations
- Dispute outcomes
This contract answers the question:
What am I legally entitled to be paid when employment ends?
Labor card or work permit
Falls under: administrative employment authorization
It exists to:
- Confirm legal permission to work
- Link the employee to an employer
- Enable WPS salary monitoring
- Support visa and insurance processes
It does not define pay, notice, or termination rights.
This document answers a different question:
Is this person legally allowed to work under UAE regulations?
Because both documents are official and issued through MOHRE systems, they are often mistaken as equal. Legally, they are not.
Step 5: Final settlement and payment timeline
Once notice ends or is paid in lieu, the employer must complete the final settlement.
This includes:
- Salary up to the last working day
- Payment in lieu of notice if applicable
- Unused leave balance
- Any other contractual dues
Delays or underpayment expose employers to complaints, penalties, and court orders.
What happens if there is a dispute
When a complaint is filed:
- MOHRE retrieves the registered employment contract
- Wage records are reviewed
- Notice compliance is assessed
Labor cards are not used to calculate notice pay during dispute resolution. Courts follow the same approach.
Outcomes are consistent because the legal reference point is consistent.
What employees should do now
Before resigning or accepting termination:
- Download your MOHRE contract
- Read the notice clause carefully
- Confirm your wage definition
- Keep written notice and payment records
If calculations do not match the contract, raise the issue early.
What employers must correct immediately
To remain compliant:
- Base notice calculations only on the MOHRE contract
- Stop using labor card dates for pay decisions
- Ensure contracts are properly registered and updated
- Pay notice dues fully and on time
Most notice disputes arise from process shortcuts, not unclear law.
Summary: How Notice Pay Period Works
The UAE notice period pay system is linear and predictable.
Contract first.
Notice days second.
Wage calculation last.
The MOHRE registered employment contract governs notice period pay.
The labor card does not.
Once that distinction is understood, the process becomes clear and disputes disappear.