What is a notice period?

How long notice is

The length is set by the contract, within whatever limits local law imposes. The UAE Labour Law is a clear example: after probation, the notice period is whatever the contract sets between 30 and 90 days, and it has to be the same for both parties unless a different period favours the worker. During probation a shorter rule applies — see probation period.

The contract stays in force throughout the notice. In the UAE the worker is entitled to their full wage for the period and works during it if the employer asks; the two sides may agree to waive or shorten it while preserving the worker’s rights.

Pay in lieu of notice

When one side does not honour the notice, it pays the other compensation equal to the wage for the full notice or the part not served. Under the UAE law this “notice period allowance” is due even if the missing notice caused no damage, and it is worked out on the last wage the worker received — allowances included, unlike gratuity, which uses the basic salary.

In a full and final settlement, unserved notice is a recovery when the employee left early and a payment when the employer ended the contract without notice. The final settlement calculator takes the days and the day rate as inputs.

Notice in a Ledgr settlement

A Ledgr settlement has a notice shortfall field, entered in days, which turns into its own line on the leaver’s statement with the formula beside it, so finance and the leaver can both see how the figure was reached.