Questions & Answers
What to do if an employee fails to provide the required 90-day written notice for resignation?
Colleagues,
The situation is as follows:
The contract expires on August 14, 2025. However, the contract includes the following clauses:
1. (The “Term”) commencing on August 1, 2023. The contract shall automatically and repeatedly renew for periods of 2 years unless either Party notifies the other in writing, not less than 90 days prior to the expiry date of such period, of its desire not to renew the original or any renewed period.
2. This contract may be terminated by either of the Parties prior to the end of the Term, provided that the terminating Party serves the other Party with advance written notice of 90 days (minimum 30 and maximum 90 calendar days).
The employee today expressed a desire not to extend the contract. But he didn't serve the required notice (90 days).
What can we do in this case?
Dear Questioner,
Thank you for your message!
Based on the contract clauses you shared, if the employee failed to provide the required 90-day written notice before the renewal date (August 14, 2025), the contract may automatically renew for another 2 years.
The absence of a timely notice could give your company legal grounds to consider the renewal valid or to seek compensation for early termination.
However, the exact course of action may depend on further details and applicable UAE labor laws.
We recommend booking a legal consultation or formally appointing our office to review the contract and assist with the appropriate legal steps. You can do so through our website
Best regards,
Dear Questioner,
Based on the contractual clauses you shared, there are two distinct legal scenarios to consider:
1. Regarding non-renewal of the contract:
As per the clause, the contract automatically renews for successive periods of two years unless either party provides written notice at least 90 days prior to the expiry date (i.e., by 14 May 2025).
Since the employee expressed the desire not to renew only today, and has not submitted a formal written notice within the required period, the contract is considered legally renewed for another 2-year term (until 14 August 2027).
2. Regarding early termination of the contract:
The contract allows early termination by either party, provided that written notice is given with a minimum of 30 days and a maximum of 90 days’ notice. If the employee wishes to terminate the renewed contract early, they must comply with this notice period or compensate for the shortfall in lieu of notice, as per contractual and UAE Labour Law obligations.
Recommended action:
Inform the employee in writing that, due to the failure to provide timely notice, the contract has been automatically renewed.
Clarify that any early termination request now will fall under the early termination clause and must be done with proper notice or financial compensation.
We can assist you in drafting a formal legal notice to the employee to preserve your rights and confirm the position.
Please feel free to contact us should you require assistance in handling this matter further.
Best regards,
Hello,
Since the employee did not serve the required 90 days’ written notice before the contract expiry on August 14, 2025, the contract will automatically renew for another 2-year period as per the agreement.
However, the employee can still terminate the contract early by providing a written notice of at least 30 days (up to 90 days) under the early termination clause. Until such notice is given, the contract remains valid.
If you need assistance drafting a formal response or managing this process, please let me know.
Best regards,
Thank you for contacting us via Legal Advice Middle East!
In your situation, there are two distinct clauses in the contract: one governs automatic renewal unless a 90-day prior notice is given before the end of the current term, and the other allows early termination during the term with a minimum of 30 to a maximum of 90 days' notice.
We’ve advised in a nearly identical case where the employee attempted to opt out just before contract expiry without respecting the 90-day renewal notice. The court confirmed the automatic renewal due to the employee's failure to provide a timely written notification.
If the employee only expressed the desire not to extend today, less than 90 days before the August 14 expiry, then the contract has already automatically renewed for another 2-year term.
The only option now is to treat their request as a termination within the renewed term, which means they must serve a proper written notice of 30 to 90 days and comply with any end-of-service or handover obligations.
Clause 1 (Automatic Renewal):
"The contract shall be automatically renewed for two-year periods unless either party notifies the other party at least 90 days prior to the expiration date..."
What this means:
If the employee or the company does not notify the other party before May 14, 2025 (90 days prior to August 14, 2025), the contract shall automatically renew for an additional two years until August 14, 2027.
As long as the employee does not submit a notice of non-renewal before this date, the contract shall automatically renew with the same force and effect.
Clause 2 (Early Termination):
"Either party may terminate this contract before the end of the term, provided that they give at least 30 days and no more than 90 days' prior written notice."
What this means:
If the employee wanted to terminate the contract before August 14, 2025, they should have given notice between 30 and 90 days prior to the proposed termination date.
But since the term is about to expire, this item is less important now than the renewal item.
Thank you for your message and the clarification of the contract terms!
Based on what you've shared, since the employee did not give the required 90-day written notice before the contract’s automatic renewal, the contract is now set to renew automatically for another 2-year term starting August 15, 2025.
If the employee now expresses a desire not to renew, but has missed the notice deadline, technically, the contract continues, and the company may rely on this to enforce the renewal.
However, if the employee insists on exiting, the company can still treat this as an early termination under the second clause you mentioned.
That means the employee must serve between 30 to 90 days of notice (ideally 90, if you wish to hold them to the maximum), and the contract would end early, without rolling into a new term.
The best approach now is to immediately acknowledge their intention not to continue, and demand formal written notice with at least 90 days’ notice as per the termination clause. This keeps your legal position secure while allowing a structured exit.
If you would like me to assist in preparing the notice communication or represent your company in ensuring all exit formalities are handled properly and without exposure, feel free to contact me directly on WhatsApp or by phone at [-------------] to discuss this in detail.
If the employee had served a resignation letter, then he needs to comply with the 90-day notice compulsorily or compensate by making a payment in lieu of the notice period.
Otherwise, the employer can take action. Also, the employer is not required to renew the contract for the upcoming term.
If you need more details, kindly share your WhatsApp number.
