Resignation

Overview

Resignation is a fundamental aspect of the employment relationship in the United Arab Emirates (UAE), regulated under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations and its subsequent amendments (the "UAE Labour Law"). The law provides specific guidance for both employees and employers on the rights and responsibilities when a resignation occurs. Judicial precedents, particularly those issued by the Dubai Supreme Court, further clarify the application of the law and provide interpretative value.

This Practice Note offers practical guidance on the resignation process, from notice requirements to final settlement and legal recourse. The aim is to help legal practitioners, HR professionals, and in-house counsel navigate the legal landscape of resignation in the UAE.

Definitions

• UAE Labour Law: Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations and its amendments.
• MOHRE: Ministry of Human Resources and Emiratisation.
• Notice Period: The period required to be served by the employee or employer before terminating the employment contract.
• End-of-Service Gratuity: A statutory payment owed to the employee upon end of employment.
• Work Permit: Official authorization for an individual to work in the UAE.
• Residency Visa: Legal permission to reside in the UAE, typically tied to employment.
• Judicial Precedents: Legal rulings from courts, particularly the Dubai Supreme Court, that interpret legislation.
• Final Settlement: The process of resolving all dues owed to the employee after resignation.
• Labour Case Reference Numbers: Citations such as Case No. 301/2015 (Labour), indicating judicial rulings.

Practical Guidance

1. Legal Basis and Initiating Resignation

• An employee or employer may terminate the employment contract under Article 43 of the UAE Labour Law.
• The terminating party must provide written notice, observing the contractual notice period (minimum 30 days, maximum 90 days).

2. Submitting the Resignation

• The resignation must be in writing and delivered to the employer via email or formal letter.
• The effective date of resignation is the date the employer receives the written notice (Dubai Supreme Court, Case No. 112/2017).

3. Notice Period Obligations

• The employee must continue to fulfil their duties during the notice period.
• If the employee fails to serve the notice period, the employer may claim compensation for the unserved duration unless waived (Dubai Supreme Court, Case No. 301/2015).
• If the employee abandons work without valid justification during the notice period, they may forfeit end-of-service benefits and become liable for damages (Dubai Supreme Court, Case No. 456/2016).

4. Employer's Duties Upon Resignation

• Settle all financial entitlements: unpaid wages, gratuity, unused leave.
• Provide a work experience certificate upon request.
• Cancel the work permit and residency visa.
• Complete final settlement within 14 days from the last working day (Dubai Supreme Court, Case No. 789/2018).

5. Final Settlement and Visa Cancellation

• Final settlement must be processed promptly, or the employer may face legal liability.
• Failure to cancel the visa/work permit in a timely manner can delay the employee's ability to leave the country or take new employment.

6. Dispute Resolution

• Parties should first file a complaint with MOHRE for mediation.
• If unresolved, the matter may be escalated to the labour courts.
• Courts require proof that administrative remedies were exhausted before litigation.

This article is first published in LexisNexis