Exit & Offboarding

    UAE Employee Resignation Guide

    Complete guide to employee resignation in UAE. Learn about notice periods (30-90 days), Article 42-43 requirements, resignation letter templates, payment in lieu, and job search leave entitlements.

    Published: January 23, 2026
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    6 topics covered

    Quick Summary: Complete guide to employee resignation in UAE. Learn about notice periods (30-90 days), Article 42-43 requirements, resignation letter templates, payment in lieu, and job search leave entitlements.

    Resignation is a formal process governed by UAE Labor Law. Under Articles 42-43 of Federal Decree-Law 33/2021, employees must provide proper notice (30-90 days depending on contract) and employers must process final settlement within 14 days. This guide covers the complete resignation process, notice requirements, templates, and entitlements.
    AspectDetails
    Legal BasisArticles 42-43, Federal Decree-Law 33/2021
    Standard Notice30-90 days (per contract)
    Minimum Notice30 days
    Probation Notice14 days (employee), 30 days (leaving UAE)
    Settlement DeadlineWithin 14 days of exit

    Notice Period Requirements

    Notice periods vary based on contract terms and employment duration.

    Standard Notice Periods

    Contract TermTypical Notice
    Less than 5 years30 days
    5+ years service60-90 days
    Senior positions60-90 days
    As per contractContract terms prevail

    During Notice Period

    Employee MustEmployer Must
    Work full notice periodPay full salary
    Complete handoverProvide work
    Maintain performanceAllow job search leave
    Follow company policiesProcess final settlement

    Resignation Process

    Follow these steps for a proper resignation process.
    StepActionTimeline
    1Submit written resignationDay 0
    2Manager acknowledgment1-2 days
    3HR processes resignation2-3 days
    4Notice period beginsPer contract
    5Work through noticeNotice period
    6Complete handoverDuring notice
    7Exit clearanceFinal week
    8Final settlementWithin 14 days
    9Visa cancellationAfter settlement

    Resignation Letter Templates

    Use appropriate templates based on your resignation situation.

    Submission Methods

    MethodRequirements
    Written letterSigned and dated
    EmailFrom official company email
    HR systemIf available in company
    In personFollow up in writing

    Key Elements

    Payment in Lieu of Notice

    When notice period is not fully served, payment in lieu applies.

    When Applicable

    ScenarioPayment Direction
    Employee wants to leave earlyEmployee pays employer
    Employer releases earlyEmployer pays employee
    Mutual agreementAs agreed between parties

    Calculation

    Payment in Lieu = (Monthly Salary / 30) x Remaining Notice Days. For example: Monthly salary AED 15,000, 30-day notice, 10 days worked = (15,000 / 30) x 20 = AED 10,000.

    Resignation Without Notice

    Article 45 allows resignation without notice in specific circumstances.

    Valid Grounds (Article 45)

    GroundDescription
    Breach of contractEmployer fails to meet obligations
    AssaultPhysical violence by employer
    DangerContinued work threatens safety
    FraudEmployer misled at hiring
    False accusationsEmployer accuses of crime

    Process

    Job Search Leave

    Employees are entitled to paid leave for job searching during notice period.
    AspectDetails
    Amount1 day per week OR 2 half-days per week
    PayFull pay
    ConditionDuring notice period only
    PurposeFind new employment
    ApprovalCoordinate with manager

    Final Settlement

    Employees are entitled to full settlement upon resignation.

    Entitlements

    ComponentCalculation
    Final salaryThrough last working day
    End of service gratuityPer UAE Labor Law formula
    Annual leaveUnused balance encashed
    Notice payIf employer releases early
    AirfarePer contract (if applicable)

    Possible Deductions

    DeductionWhen Applicable
    Notice shortfallIf employee leaves early
    AdvancesOutstanding loan balances
    PenaltiesPer company policy
    Unreturned propertyCost of items

    Timeline

    Employer must process and pay final settlement within 14 days of the last working day. Visa cancellation follows after settlement is paid.

    Frequently Asked Questions

    Streamline Employee Resignations

    NeuralHR provides digital resignation workflows, automatic notice period calculation, settlement calculators, and document generation for smooth employee exits.

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    Our team of HR professionals and legal experts specializes in UAE labor law compliance, with extensive experience helping businesses navigate MOHRE regulations, Emiratisation requirements, and workforce management in the UAE and GCC region.

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    UAE Employee Resignation Guide | NeuralHR