What is the responsibility of the employee in case of leaving before the end of the notice period?

Hello,

According to Federal Decree-Law No. (33) of 2021 on the Regulation of Labour Relations, specifically Articles 42 and 43, the employee may lawfully choose not to renew a limited-term contract by serving written notice to the employer at least 30 days prior to the intended last working day, unless a different notice period is agreed upon in the employment contract.

The notice period is calculated from the date of formal communication, and it is highly advisable that this is done in writing, preferably via email, to ensure clear evidence of the employee’s intent and timing.

In this context, the employee’s decision communicated on 20th May 2025 to not renew the contract would trigger the start of the notice period, and therefore, the employment would extend beyond the contract end date (31st May 2025) only if the required 30-day notice had not yet been completed.

However, the employer also has the right to waive the notice period, in which case the employee may leave earlier.

As for the salary during the notice period or the post-contract grace period, the employee is not entitled to a salary increment unless contractually agreed.

The salary payable during the notice period must be based on the last received salary.

Good morning,

Thank you for your inquiry.

Regarding the 30-day grace period after the contract ends, it is important to note that this period is typically meant for visa or residency-related formalities and does not replace the notice period required by the employment contract.

As per UAE Labor Law, the employee is still required to fulfill the notice period as specified in the contract, unless there is a mutual agreement to waive or modify it.

While the employee may request a salary adjustment during the notice period, the employer is not legally obligated to grant such a change.

The employee would continue to receive the current salary unless both parties agree otherwise.

If the employee does not serve the full notice period, the employer may be entitled to seek compensation for the unfulfilled notice period.

Should you require further clarification or wish to discuss the specifics of your case in more detail, feel free to reach out.

Best regards,

Dear Inquirer,

Thank you for your question.

In cases where a limited-term employment contract is set to expire on a specific date (e.g., 31st May 2025), and the employee chooses not to renew, no formal resignation or notice is typically required, as the contract ends naturally.

Regarding your specific questions:

Grace Period & Notice:

The 30-day grace period after visa expiry is an immigration-related allowance to remain in the country, not a substitute for contractual notice. If the employee informed the employer of non-renewal before the end date, and the employer accepted it, this usually satisfies any practical notice requirement.

Salary During Grace/Notice Period:

The employee cannot demand a different salary during the notice or grace period unless the employer agrees in writing. The original contract terms remain valid until the end.

For case-specific legal advice or to authorize our office to represent you, we recommend booking a consultation with Future Vision for Advocacy and Legal Consultancy.

1. No, the grace period for visa status is entirely separate from the employment contract's notice period. In your case, the contract is ending on May 31, 2025.

You made the decision not to renew on May 20, 2025. This means you gave less than 30 days' notice for non-renewal.

If an employee fails to give the required notice for non-renewal of a limited contract, they may be liable to pay the employer compensation equivalent to their wage for the notice period that was not served.

2. If you were serving a valid notice period for 30 days, you would be entitled to your existing contractual salary (basic salary plus allowances) for that entire period.

If you need further clarification, you may ask.

Dear Client,

Thank you for your inquiry regarding the responsibilities of the employee and the application of the notice period in the context of a fixed-term employment contract concluding on 31st May 2025.

1) Application of Notice Period and Grace Period

Under UAE Labour Law, the notice period is a mandatory component of employment termination, typically ranging from 30 to 90 days, with 30 days being the standard minimum unless otherwise stipulated in the employment contract.

The notice period serves as formal notification of intent to terminate or not renew the contract and allows both parties to prepare for the transition.

If the employee decides not to renew the contract, the employee is expected to notify the employer under the notice period specified in the contract or, in the absence of such, the statutory minimum (30 days).

End of Fixed-Term Contract: If the contract is set to expire on 31st May 2025 and both parties have agreed (in a meeting on 20th May 2025) not to renew, the employment relationship will naturally conclude on the contract end date. In this scenario, if proper notice of non-renewal has been communicated and accepted before the expiry, there is typically no additional notice period required beyond the contract end date.

Grace Period: The post-contract “grace period” (such as the 30-day period allowed for visa status adjustment) is an immigration provision and does not substitute or fulfill the employment law notice period requirement. The notice period must be served while the contract is still active.

2) Salary During Notice or Grace Period

Salary During Notice Period: During the notice period (if served), the employee is entitled to receive their full salary and benefits based on their most recent wage, as per UAE Labour Law.

Salary During Grace Period: The grace period after contract/visa expiry is not considered part of the employment relationship. The employee is not entitled to a salary or to negotiate new employment terms during this period, as the contractual relationship has ended.

Requesting a Different Salary: The employee may request a salary increment during the active contract or notice period, but the employer is under no legal obligation to grant such a request. Once the contract has ended, there is no entitlement to salary or benefits unless a new contract is executed.

Conclusion:

The employee’s responsibility is to serve the notice period as required by law or contract if they do not wish to renew.

The grace period after contract expiry is for immigration purposes and does not count toward fulfilling the notice period. Salary and benefits are only due during the active employment or notice period, not during the post-contract grace period.

Should you require further clarification or assistance, please let me know.

Kind regards,

Answer: No, the "grace period" is not considered part of the notice period.

The grace period (30 days) is an extension of your legal residency in the country after your visa expires, according to the Residence Law.

It is not related to the employment relationship or the notice period stipulated in the employment contract or the Labor Law.

The notice period is part of the contractual employment relationship and begins when one party notifies the other of their desire to terminate or not renew the contract.

✦ Application in your case:

Since the employee notified management on May 20, 2025, of their desire not to renew the contract, which expires on May 31, 2025, this constitutes notice of termination before the end of the contract.

However, theoretically, this notice was only given 11 days before the end of the contract, not 30 days as may be stipulated in the contract.

➤ Legal Result:

If the contract stipulates a notice period (for example, 30 days) and the employee fails to comply, the employee may be required to pay compensation for breach of notice (equivalent to the wages for the period not served).

The employee is exempt from this compensation only if the contract expires and the employee fails to renew it without breaching the stated notice requirement.

Dear questioner

You need to serve the notice period, which is mandatory which as mentioned in the labor contract, even if it covers the grace period.

Even if you put a notice period still you can still negotiate with the employer for a salary increment and as well as withdraw if the employer is increasing the salary.

If you need further clarification, kindly share your WhatsApp number.

Thank you for your detailed question.

In principle, if an employee is on a fixed-term employment contract that expires on 31st May 2025, and both parties do not agree to renew it, the contract will naturally conclude on that date without the need for either party to serve a notice—unless otherwise stated in the contract.

To address your specific queries:

Grace Period and Notice Requirement:

The 30-day grace period after visa expiry is an immigration allowance, not a substitute for contractual or legal notice under UAE Labour Law.

If the employee has clearly communicated the intent not to renew and this was accepted by the employer during the 20th May 2025 meeting, then no further notice is typically required, but this must be supported by clear documentation or mutual agreement.

Salary Change Requests During Notice/Grace Period:

The employee may certainly request a different salary at any time, but the employer is not legally obliged to approve it.

In the absence of a new agreement, the terms of the existing contract (including salary) will remain in effect until its conclusion.

This matter could involve some nuances depending on how your contract is worded and what communication has been documented.

I’d be happy to review the employment contract and relevant exchanges to give you precise guidance.

Please feel free to reach out to me directly through WhatsApp or phone to discuss further.

Best regards,

Suhail Rana