International

Dismissal During Statutory Leave Cannot Toll Notice Periods Under UAE Labour Law

By The Legal Alpha Web Desk · 11 October 2026 · 4 min read
Dismissal During Statutory Leave Cannot Toll Notice Periods Under UAE Labour Law

Mainland private-sector employers in the United Arab Emirates cannot shorten or overlap an employee’s contractual notice period by issuing a termination notice while the worker is on approved statutory leave. The Ministry of Human Resources and Emiratisation regulatory framework establishes that any termination notice issued during an approved leave period remains paused until the worker formally returns.

The clarification addresses a common point of dispute across UAE commercial hubs, where employers attempt to run contractual notice periods concurrently with an employee's annual, maternity, or sick leave to expedite exits and lower wage liabilities.

Legal Topic

  • Area of Law: Labour and Employment Law

  • Sub-topic: Contract Termination, Notice Periods, and Statutory Leave Rights

Core Legal Issue

The core legal question centers on statutory timing: whether an employer’s decision to terminate an employment relationship can legally take effect during an authorized absence, and whether notice period timelines can run concurrently with approved leave under the UAE’s federal labour scheme.

At issue is whether the statutory protection afforded to leave periods prevents employers from neutralizing an employee's contractual right to work or be compensated during the mandatory notice window.

What Did the Court / Authority Decide?

Under the federal statutory regime, an employer is barred from counting leave days against an employee’s mandatory notice period.

  • A notice of termination communicated while a worker is on approved leave does not initiate the running of the notice clock immediately.

  • The statutory notice period only begins on the business day immediately following the employee's scheduled return from leave.

  • The employer remains obligated to pay regular wages for the approved leave duration in full, alongside contractual notice pay and subsequent end-of-service entitlements.

  • If an employer executes an immediate dismissal without legitimate cause or bypasses this timeline, the employee is entitled to initiate dispute proceedings through MoHRE and seek compensation for arbitrary termination.

Key Legal Points

  • Tolling of Notice Periods: Contractual notice periods are legally suspended during approved leave and only commence the day after the worker's official return to duty.

  • Statutory Notice Limits: Notice periods must remain between 30 and 90 calendar days, during which the employee retains full remuneration and performance obligations.

  • No Dual-Deduction: Employers cannot offset salary in lieu of notice against earned statutory leave balances.

  • Job Search Rights: When terminated by an employer, workers retain their statutory right to one unpaid day per week during the active notice period to seek alternative employment.

Relevant Law

  • Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships (as amended):

    • Article 35: Explicitly governs the validity of notice periods during leave, dictating that notice starts only the day after leave ends.

    • Article 43: Mandates minimum written notice of 30 days (up to 90 days), wages during notice, and the right to weekly job-search leave.

    • Article 47: Governs arbitrary termination and associated compensatory penalties against non-compliant employers.

  • Cabinet Resolution No. 1 of 2022: Implementing Regulations to Federal Decree-Law No. 33 of 2021.

Arguments of the Parties

Employer Position

Employers commonly contend that administrative restructuring, operational redundancies, or performance concerns entitle management to issue unilateral termination notices at any point under the contract's standard termination clause. From an enterprise cash-flow perspective, companies often argue that the calendar notice period should run concurrently with approved leave to avoid extending payroll obligations past the employee's physical departure.

Employee Position

Workers argue that approved statutory leave constitutes a protected right, and that concurrent notice periods unfairly strip them of the transition period mandated by statute. They submit that running notice during leave deprives them of the ability to search for employment, organize visa transfers, or serve out their tenure with pay once their leave expires.

Why Does It Matter?

This statutory bar directly affects corporate human resource administration and payroll budgeting across all mainland UAE entities. It eliminates attempts to compress termination timelines by firing personnel while they are away on vacation, maternity, or certified medical leave.

For businesses, issuing termination letters without factoring in the worker’s return date exposes organizations to wage claims before MoHRE, mandatory back-pay penalties, and legal costs. For employees, it guarantees an uninterrupted transition window upon re-entering the workforce, preserving accrued leave compensation separate from severance and notice pay.

Legal Takeaway

Under UAE Labour Law, employers cannot run a termination notice concurrently with an employee's approved leave. Any notice issued during statutory absence is legally deferred, with the minimum 30-day notice period beginning exclusively on the day after the worker returns.

Sources

Primary Source:

  • Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships (UAE Labour Law), Articles 35 and 43.

  • Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021.

Additional Sources:

  • Ministry of Human Resources and Emiratisation (MoHRE) Regulatory Guidance & Dispute Procedures.

  • Legal advisory publications on UAE Labour Law, including statutory leave management and notice period regulations.

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