Probation Period in UAE
The probation period is the period between the two parties before boarding on a long term commitment.
It is common practice in the UAE to employ persons on an initial probation period. During the probation period either the employer or the employee may terminate the employment contract with immediate effect without the employee being liable to pay end of service gratuity or the employee, compensation for damages.
According to Article 37 of the Labour Law, the probation period can be for a maximum period of six months(6 months). It is not permissible for the same employer to employ any person on probation, more than once. Once completed, the probation period is considered as part of the overall employment term and is taken into account when calculating gratuity and other terminal benefits.
Resignation during Probation period
All wages and benefits accrued during the probation period must be paid along with repatriation costs. The employer is, however, not required to pay end of service gratuity or compensation in lieu of notice or damages should the employment contract be terminated without notice during the probationary period. If the employee, however, resigns during his probation period without a good cause he is liable to pay his own repatriation cost.
The parties to the contract may agree to commence employment without probation as it is not compulsory under the Law. However, it is left to the discretion of the parties to agree upon the actual term of the probationary period subject to a maximum of six months.
After the completion of the probationary period, the termination of the employment by either party must be preceded by at least 30 days’ notice given to the other party before the termination of an employment contract. The Labour Law does not allow any room for negotiation in this respect, even for instance, when the employer is willing to consent to a shorter time period. Any shorter contractual notice period is unlikely to be enforceable.
So the six months’ time is more than enough for a company to determine if an employee is right or fit for a certain position and also allows time to terminate the employment during that period if required.
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