Is notice period pay based on your labour card or MOHRE contract in the UAE?
Here’s what happens if an employer or employee fails to serve the full notice period
Dubai: If you have resigned or been let go from your job, one of the first things you may start calculating is your notice period compensation. But what happens if your employer bases the calculation on the date shown on your labour card, which may differ by a few days from the official employment contract?
While the gap may seem minor, it can affect the amount you receive, especially when notice pay is involved. Under UAE Labour Law, your notice rights are not determined by the labour card. They come from your MOHRE employment contract.
Notice periods in the UAE: What really determines your rights
The rules for notice periods and notice compensation are set out in Article 43 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations.
According to lawyer Mohammed Elmasry Associate at Al Suwaidi and Company, Article 43 requires that either the employer or the employee must give written notice before ending an employment contract.
“During the notice period, the employee is entitled to full remuneration,” El Masry explained.
If either party fails to serve the required notice, they must pay compensation instead. This is known as payment in lieu of notice.
Notice calculation is based on the MOHRE contract — not the labour card
A common misunderstanding arises when employers use labour card dates for notice calculations.
However, El Masry clarified: “Notice calculation is based on the MOHRE employment contract, not the labour card.”
This means the official notice period and any compensation owed must be calculated according to what is written in the registered employment contract, not other documents. Your employment rights come from the MOHRE contract.
The exact notice period you must complete depends on what was agreed in your contract. Within the legal range of 30 to 90 days, your contract may specify - one month, two months to three months. This is the period both parties are expected to follow unless an exception applies.
Termination during probation
If an employer decides to terminate an employee during probation, the notice period is shorter. Under Article 9(1) of the Labour Law, the employer must provide - a written 14-day notice. This requirement applies specifically during the probation stage.
If you are unsure what notice period applies to you, the best step is to check your official employment contract. You can obtain a copy by accessing it online through the MOHRE website - mohre.gov.ae
This is the document that determines your notice obligations and compensation rights.
Article 43 explained: Notice period rules in the UAE
Under Article 43, either party may terminate the employment contract for any legitimate reason, as long as the following conditions are met:
Written notice must be provided - Termination must be communicated formally in writing.
The contract continues during the notice period - The employment relationship remains active until the notice period ends.
The notice period must be between 30 and 90 days - It cannot be shorter or longer than the limits set by law.
Your salary rights during the notice period
Article 43 confirms that:
The worker is entitled to their full wage during the notice period
The wage is based on the most recent salary received
The contract only officially ends once the notice period expires.
Payment in lieu of notice: Compensation if notice is not served
If either party does not complete the notice period, compensation must be paid.
Key points include:
Compensation is owed even if no harm was caused
The allowance is calculated using the worker’s last received wage
It covers the entire notice duration not served
Sign up for the Daily Briefing
Get the latest news and updates straight to your inbox
