Probation Period UAE: Rights and Responsibilities Explained (updated 2023)

Understanding UAE Probation Period: Rights and Responsibilities Explained

Moving to a new job can be uncertain, especially during the probation period when your performance is being assessed. The probation period may be the most important part of the start of your job in the UAE. The probation period works as an assessment of the employee’s performance. The main aim of the probation period is to allow the employer to know the new hire is suitable for the respective job or not. When you are hired in UAE you must go under probation period.

You may have several questions in your mind regarding the UAE probation period :

• What is UAE probation period?
• How long is probation period in UAE?
• Can I leave job in probation period in UAE?
• Do I need to pay if I resign under probation period in UAE?
• What happens after 3 months of probation?
• Can I quit during probation period?
• What are the new rules in UAE 2023 for employees?
• Can I be terminated during the probation period?
• Can the employer extend the probation period?
• What is the new Law on Probation period in UAE and what are my rights during the probation period under New Law?
• What are my rights during probation period?

The below article clearly explains your questions regarding the UAE probation period.

The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) recently highlighted the rights of employees during the probation period under the new UAE Labour Law.

The probation period for an employee should not exceed six months and cannot be extended. If the employee successfully completes the probation period and continues working, that period is counted as part of their overall service.

If the employer wants to terminate the employee during the probation period, they must provide a written notice of at least 14 days. If an employee wishes to change jobs during probation and join another employer in the UAE, they must give their current employer a written notice of at least one month. In this case, the new employer is responsible for compensating the current employer for the employee’s recruitment costs, unless there is a different agreement in place.

If an employee resigns during the probation period with the intention to leave the job and the UAE, they must give a written notice of 14 days. If the resigning employee returns to the UAE within three months with a new work permit, the new employer must compensate the previous employer for the recruitment costs, unless agreed otherwise.

The probation period in the UAE serves as a critical phase for both employers and employees, allowing them to evaluate the suitability of the employment relationship. Here’s a deeper dive into why the probation period is necessary and the rules governing it under UAE labour law.

Here are seven important points to remember during your probation:

1. Maximum Duration: The probation period cannot exceed six months. If you complete it successfully, it counts towards your total period of service.
2. Sick Leave: You can take sick leave during probation, but it will be unpaid.
3. Annual Leave: You may be able to take annual leave with your employer’s approval, but they have the right to refuse it.
4. Termination Notice: If your contract is terminated during probation, your employer must provide a written 14-day notice.
5. Resignation Notice: If you resign to join another company in the UAE, you must give one month’s notice in writing. The new employer should compensate your previous employer for recruitment costs.
6. Failure to Give Notice: Leaving the UAE without following the proper notice requirements can result in a one-year labor ban. However, there are exceptions for certain groups.
7. Terminating Contract: If you resign during probation, you may be required to compensate your employer as per your contract terms.

Purpose of the Probation Period

• The probation period allows the employer to assess whether the employee’s skills, competencies, and performance meet the job’s requirements and the organization’s standards.
• It’s an opportunity to see if the employee fits well with the company culture and team dynamics.
• Employees can receive feedback on their performance and have the chance to improve and adapt to the job’s demands.
• If an employee does not meet the organization’s expectations, the employer can terminate the employment with minimal legal and financial ramifications during the probation period.
• The employee also gets to evaluate the job and the company, ensuring it meets their expectations and career goals.

Probation Period Rules Under the UAE Labour Law

Maximum Probation Period

The UAE Labour Law caps the probation period at six months. This limitation is crucial to prevent abuse of the probationary status and ensure both parties promptly make informed decisions about the employment relationship.

Contract Termination

Employers have the right to terminate an employee’s contract during the probation period if the employee’s performance is deemed unsatisfactory. However, notice requirements and any applicable end-of-service benefits should be checked as per the latest regulations.

Key Points on Contract Termination During Probation in the UAE:

• Employers must notify the employee in writing at least 14 days before the specified termination date of the service if they decide to terminate an employee during the probation period. This is in line with Article 9 (1) of the Federal Decree-Law No. (33) of 2021.
• If either the employer or the employee terminates the contract without adhering to the provisions of Article 9, the party initiating the termination must compensate the other. This compensation is equal to the worker’s wages for the notice period or the remaining period of the notice, as per Article 9 (5).
• Employees who decide to leave during the probation period are required to give notice as well—14 days if they are leaving the UAE and 30 days if they are taking a new job within the UAE.
• Failing to meet the contractual obligations or the provisions of the UAE Labour Law can result in legal consequences, including a potential labour ban for the employee.
• Under specific circumstances, such as a breach of contract by the employer or assault, employees have the right to terminate their employment immediately without notice, as stated in Article 121.

Employee’s Right to Resign and Move to Another Company:

• Employees wishing to move to another company in the UAE during the probation period must notify their current employer in writing within one month to terminate the contract, in accordance with Article 9 (3).
• The new employer is responsible for compensating the original employer for the recruitment costs, unless otherwise agreed upon, as stated in Article 9 (3).
• Foreign workers who resign during the probation period and intend to return to the UAE within three months to work for a new employer will see the new employer compensating the original employer, unless an alternative agreement is made (Article 9 (4)).

No Entitlement to Paid Sick Leave During Probation

Article 31 (2) specifies that during the probation period, employees are not entitled to paid sick leave. However, employers may provide unpaid sick leave at their discretion. This regulation underscores the probation period as a time for assessing an employee’s suitability, including their ability to perform work duties consistently.

Entitlement to Gratuity Under the UAE Labour Law Probation Period

Employees are not entitled to gratuity during the probation period. Gratuity, a form of end-of-service benefit, accrues only after an employee completes their probation period and continues working for the same employer for at least one year. The DIFC (Dubai International Financial Centre) has its own set of laws regarding employment, including gratuity payments, which may offer more details or variations applicable within the DIFC jurisdiction.

Legal Protections

While on probation, employees are still protected under UAE Labour Law, including rights related to working hours, public holidays, and health and safety standards. However, specific entitlements, like end-of-service benefits, may be governed by the terms of the probation.

No Extension in the Probation Period

The probation period cannot be extended beyond the initial term agreed upon in the employment contract, with a maximum allowable duration of six months according to Article 9 (2). Once an employee successfully completes their probation, they cannot be subjected to another probation period by the same employer, emphasizing the one-time nature of probation periods within any continuous employment relationship. The successful completion of the probation period transitions the employee to regular employment status, contributing to their service tenure for benefits like gratuity.

Conversion to Permanent Employment

Following a successful probation period, the employee is typically converted to permanent status, which comes with additional job security and benefits as stipulated by the UAE Labour Law.

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Rights and Responsibilities of Employer and Employee during the Probation period in UAE:

Article 9 of Federal Law No. 33 of 2021 explains the rights and responsibilities of both employers and employees during the probationary period. Here is a simplified explanation of each point:

1. Probation Period: Employers have the right to hire a worker on probation for up to six months. During this period, the employer can terminate the worker’s contract by providing a written notice of 14 days before the specified end date.
2. Sick Leave Entitlement: Employees on probation have the right to take sick leave, but it is considered unpaid. This means that if an employee become ill, he or she can take time off from work, but he or she will not receive your salary for the duration of your absence, in accordance with Article 31 of the UAE Labour Law.
3. Possible Annual Leave: While on probation, employee may have the opportunity to take some of your annual leave, but it is subject to your employer’s approval. Employer have the discretion to grant or deny your request for leave during this period, as stated in Article 29(3) of the Labour Law.
4. Successful Completion of Probation: If the worker successfully completes the probation period and continues working, the employment contract becomes valid according to the agreed terms. The duration of the probation period is counted as part of the worker’s overall tenure of service.
5. Switching Jobs during Probation: If a worker wants to switch jobs and work for another employer in the country during the probation period, they must give their current employer a one-month written notice. The new employer is required to reimburse the costs associated with recruitment or contracting, unless stated otherwise in the contract.
6. Termination of Contract during Probation: If an expatriate worker wants to terminate their contract during the probation period and leave the country, they must provide their employer with a written notice of at least 14 days before the specified termination date. If the worker wishes to return to the country and obtain a new work permit within three months, the new employer must pay the compensation mentioned in point 3, unless there is an agreement stating otherwise.
7. Compensation for Contract Termination: If either party terminates the contract without following the provisions of this article, they are required to pay the other party compensation equal to the worker’s wages for the notice period or the remaining period of the notice.
8. If you leave the UAE without fulfilling the required notice period, you may face a one-year ban on obtaining a work permit in the country, as stated in Article 9(6) of the Labour Law. However, there are exceptions to this rule. According to Article 28(2) of Ministerial Decree No. 1 of 2022, certain groups are exempt from the labor ban:Workers who hold a family-sponsored residency visa.
   • Workers who apply for a new work permit within the same company.
   • Workers with professional qualifications, skills, or knowledge that are in high demand in the UAE.
   • Holders of the Golden Visa.
   • Professional categories determined by the Minister of Human Resources and Emiratisation, based on the needs of the labor market and approved by the Cabinet.
9. Exemptions by the Ministry: The Ministry has the authority to exempt certain job categories, skill levels, or workers from the conditions mentioned in points 4 and 6, based on the rules and procedures specified in the Executive Regulations (Bylaws) of this Law.

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Will You Face A Labour Ban If You Are Terminating The Contract During Probation Period?

According to Article 8 of the resolution, if an employee terminates their contract during the probation period, they may be subject to a one-year labour ban. This is in accordance with the provisions stated in Articles (9) and (50) of the Federal Decree-Law.

Do You Need to Pay to the Employer If You Are Resigning During Probation Period?

If an employee decides to resign during the probation period, Article 9 of the Labour Law specifies that the new employer is responsible for compensating the original employer for the costs associated with recruiting or contracting the employee, unless there is an alternative agreement in place.

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The probationary period serves as a time for the company to assess the new employee’s performance and suitability for the role. It provides the company with an opportunity to evaluate the working relationship before making a long-term commitment. Similarly, the employee also has the right to assess whether the working conditions and environment are suitable for them to continue working on a permanent basis. It allows both parties to make an informed decision about whether to proceed with a permanent employment arrangement.

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Frequently Asked Questions FAQs on Probation Period UAE