Thinking about resigning just six months into your limited contract in the UAE? You’re not alone. Many employees receive better offers, face workplace challenges, or reconsider their long-term plans shortly after starting a new role.

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But here’s the key question: Can you legally resign after 6 months — and will you have to pay compensation?

Under Federal Decree-Law No. 33 of 2021, resignation is permitted even within a fixed-term (limited) contract. However, your legal and financial exposure depends on:

Whether you are still in probation
Whether you serve the correct notice period
Whether your contract includes enforceable compensation clauses
Whether you follow proper resignation procedures

A limited contract does not mean you are “locked in” until the end date. But resigning without understanding the legal framework can lead to salary deductions, compensation claims, or disputes before Ministry of Human Resources and Emiratisation (MOHRE).

In this guide, we break down:

✔ Whether you can resign after 6 months
✔ Notice period requirements
✔ The truth about the “3 months’ salary penalty”
✔ Gratuity eligibility
✔ Labour ban risks
✔ Step-by-step resignation strategy

If you’re planning to resign — or your employer is challenging your resignation — this guide will help you understand your legal position clearly and strategically.

Understanding Limited (Fixed-Term) Contracts Under UAE Labour Law

Since February 2022, all private sector employment contracts in the UAE must be fixed-term contracts, with a maximum duration of three years (renewable).

A limited contract means:

The employment has a defined start and end date
The contract automatically expires unless renewed
Early termination may trigger legal consequences

This structure replaced the old unlimited contract system.

Under current UAE employment law, early resignation is allowed — but it must comply with statutory notice and contractual terms.

What Is Limited Contract in UAE? 2026 Guide

These are some of the most common and urgent employment questions in the UAE. Many employees and employers still rely on outdated rules from the old labour law, especially the widely searched “3 months’ salary on termination UAE” issue.

Scenario 1: Resigning After 6 Months During Probation

What Does UAE Law Say?

Probation in the UAE:

Cannot exceed 6 months
Must be stated in the contract
Allows either party to terminate employment with notice

If you resign during probation:

You must give 14 days’ written notice if leaving the UAE
If transferring to another employer inside UAE, longer notice (usually 1 month) may apply
Recruitment cost reimbursement may apply in some cases

Important Clarification

If your 6 months fall exactly at the probation limit, your status depends on:

Whether probation clause exists
Exact resignation date
Contract wording

Even a few days’ difference can change legal consequences.

Scenario 2: Resigning After Probation But Before Contract Ends

If probation is completed and you resign at 6 months in a 2-year contract, this is considered early termination of a fixed-term contract.

You are legally allowed to resign — but:

You must serve the agreed notice period
You must review compensation clauses

What Notice Period Applies?

Under UAE Labour Law:

Minimum notice period: 30 days
Maximum notice period: 90 days
Notice must be in writing

Failure to serve notice allows the employer to:

Deduct salary in lieu of notice
Claim compensation for breach

If notice is properly served, resignation is legally valid.

Is There a 3 Months Salary Penalty for Early Resignation?

This is one of the most searched questions.

Short Answer:

There is no automatic 3-month salary penalty.

Compensation may apply only if:

The contract includes a lawful clause
Employer proves actual damage
Resignation violates statutory notice

Compensation under law is generally limited and must be proportionate.

Blanket penalty clauses exceeding legal limits may not be enforceable.

Will I Receive Gratuity If I Resign After 6 Months?

No.

Under UAE Labour Law:

Gratuity entitlement begins after completing 1 full year of continuous service.

If you resign at 6 months:

No end-of-service gratuity
Only final settlement of salary, leave balance, and dues
Summary Table: Resigning After 6 Months in Limited Contract UAE

Situation	Allowed?	Notice Required?	Compensation Risk?	Gratuity?
During probation	Yes	14–30 days	Low (depends on case)	No
After probation	Yes	30–90 days	Possible (contract-based)	No
Without notice	Risky	No	High	No

Does Resignation After 6 Months Cause Labour Ban?

Under modern UAE labour reforms:

Labour bans are less common than under old law
If resignation follows legal procedure, bans are unlikely
Breach of contract may affect mobility

MOHRE assesses compliance case-by-case.

MOHRE Labour Complaint: How to file & Documents Checklist

A MOHRE labour complaint is the UAE’s official process for resolving most private-sector employment disputes (e.g., unpaid salary, termination, benefits). You can file and follow up via the MOHRE website/app, WhatsApp 600590000, or the Labour Claims & Advisory Center 80084

What Happens If the Employer Refuses Your Resignation?

Under UAE Labour Law, employment cannot be forced.
An employer cannot legally compel an employee to continue working against their will.

However:

Notice obligations must be respected
Contractual compensation clauses may still apply
Formal resignation process must be followed

If an employer refuses to process cancellation:

Submit written resignation via email (retain proof).
Serve notice period fully.
Request written acknowledgment.
If refusal continues, file complaint with MOHRE.

Employer obstruction may constitute a labour violation.

Can the Employer Claim Compensation If I Resign After 6 Months?

Compensation becomes legally relevant if:

You resign without serving notice
The contract includes a valid compensation clause
The employer proves financial loss

However, under current labour law:

Compensation must be reasonable
It cannot exceed statutory limits
It must be proportionate to actual loss

Arbitrary penalty clauses are challengeable in Labour Court.

Example: Compensation Risk Scenario

Case Example 1 — Lawful Resignation

2-year fixed-term contract
Resignation after 6 months
30-day notice served
No breach

Result:

No gratuity
No compensation
Final settlement payable

Case Example 2 — Resignation Without Notice

Employee stops attending work
No written notice
No proper handover

Employer may claim:

Salary equivalent to notice period
Demonstrable business losses (if proven)

This often escalates into MOHRE dispute.

What If Contract Mentions “3 Months Salary for Termination”?

This clause is frequently misunderstood.

Important Legal Clarification:

A contract clause stating automatic 3 months salary penalty:

Must comply with UAE Labour Law
Must not contradict statutory termination framework
Cannot override mandatory legal protections

Courts assess:

Fairness
Proportionality
Actual damage

Many employees mistakenly assume automatic liability.

Can I Change Employer After 6 Months?

Yes — subject to:

Completion of probation
Serving notice
Compliance with labour regulations

Under modern reforms, mobility between employers is significantly easier than under older laws.

However:

Immigration rules may apply
Free zone regulations may differ

Each case depends on jurisdiction (mainland vs free zone).

Does Resigning After 6 Months Affect Visa Cancellation?

Resignation triggers:

Labour contract cancellation
Visa cancellation process

If resignation is lawful:

Visa cancellation proceeds normally
No automatic penalties

If dispute exists:

Employer may delay process
MOHRE intervention may be required

Key Legal Risks Employees Should Evaluate

Before resigning after 6 months, consider:

Is probation completed?
What notice period does contract state?
Does contract contain compensation clause?
Is there any misconduct allegation risk?
Are there unpaid salary issues?
Is there a pending performance warning?

Strategic resignation planning reduces legal exposure.

Strategic Legal Insight

From a litigation perspective, most disputes arise due to:

Improper notice
Misunderstood contract clauses
Emotional resignations without documentation
Employer misinterpretation of compensation rights

Proper documentation significantly reduces risk.

When Should You Consult a Labour Lawyer?

You should seek legal guidance if:

Employer is demanding compensation beyond notice salary
A labour ban is threatened
You are unsure about probation status
Employer refuses to cancel visa
MOHRE complaint has been filed
There is pending disciplinary investigation

Early intervention prevents escalation into formal litigation.

Legal Framework Governing Resignation in UAE

Resignation rules derive from:

Federal Decree-Law No. 33 of 2021
Executive Regulations
Contractual obligations
MOHRE enforcement framework

Older labour law articles (from pre-2022 legislation) may not fully apply.

Probation vs Post-Probation Resignation After 6 Months (Comparison Table)

If your 6-month mark falls around the probation period, your legal position changes significantly.

Factor	During Probation	After Probation
Resignation Allowed	Yes	Yes
Notice Required	14–30 days	30–90 days
Compensation Risk	Low (case-based)	Possible if contract breached
Gratuity Eligibility	No	No (until 1 year completed)
Labour Ban Risk	Rare (if compliant)	Rare (if compliant)
MOHRE Dispute Risk	Low	Moderate if notice violated

Key Insight: The legal difference is not whether you can resign — but how you resign.

Step-by-Step: How to Resign Properly After 6 Months in a Limited Contract

Step 1: Review Your Employment Contract

Check:

Probation clause
Notice period duration
Early termination clause
Compensation wording

Step 2: Submit Written Resignation

Your resignation should:

Be dated
Clearly state last working day
Reference notice period
Be sent via email or official channel

Avoid verbal resignation.

Step 3: Serve Full Notice Period

Do not:

Stop attending work
Take extended leave without approval
Leave country without clearance

Failure to serve notice increases dispute exposure.

Step 4: Request Final Settlement Calculation

Your final settlement may include:

Salary up to last working day
Unused annual leave
Reimbursements
Any pending dues

Since service is under 1 year, gratuity will not apply.

Step 5: Ensure Labour & Visa Cancellation

The employer must process:

Labour contract cancellation
Emirates ID cancellation
Visa cancellation

Common Legal Myths About Resigning After 6 Months

Myth 1: “I Must Pay 3 Months Salary If I Leave Early”

False.
Compensation depends on:

Contract wording
Notice compliance
Demonstrable employer loss

There is no automatic 3-month penalty.

Myth 2: “I Will Get a Labour Ban”

Under current reforms, labour bans are uncommon if resignation is lawful.

Myth 3: “Employer Can Refuse My Resignation”

Incorrect.
Employment cannot be forced.
However, notice obligations remain binding.

Myth 4: “Limited Contract Means I Cannot Resign”

You can resign.
But early termination must follow statutory process.

What If Employer Terminates You Instead?

If the employer terminates the contract after 6 months:

Notice must still be given
Final dues must be paid
Termination must not be arbitrary

Termination without notice may be lawful only in serious misconduct cases.

When Disputes Escalate to Litigation

Resignation disputes escalate when:

Compensation demands exceed legal limits
Employer delays visa cancellation
Salary is withheld
False misconduct allegations arise

At that stage, enforcement may involve:

MOHRE mediation
Labour Court filing
Litigation proceedings

resign after 6 months – Frequently Asked Questions