Probation Period in the UAE: Rules, Regulation & Termination

Every country has employment laws, which can be tricky for employers and employees. Issues of misunderstanding or lack of compliance can sometimes result in legal showdowns. The probation period in UAE is one of the most sensitive periods that one needs to pay a lot of attention to.

Managers, especially personnel managers, must properly assess new candidates. Employees must know their formal status in the organization. Ambiguity and miscommunication must also be avoided to avoid misconceptions.

This blog will focus on the governing laws concerning the probation period in the UAE. These laws cover employee terminations, sick leave, and gratuity rights while on probation.

We will also understand general problems and difficulties arising during this period. We will also provide best practices for employers. And recommendations for employees to avoid legal issues during probation.

What is a Probation Period?

As an employer, you can use a probation period at the start of employment to evaluate how well a new hire will fit into the role. If everything goes well, the official employment contract can start after the probation period ends.

What are the Probation Period Rules in the UAE?

Probation Period Length Regulations in the UAE

Under UAE labor law’s general provisions for probation periods, the period should not exceed six months. This regulation ensures certainty and stability in the contracts for employers and employees.

If the employee moves on after the probationary period has elapsed, this period is counted as the total service. Employees can only be placed on probation for a duration not exceeding six months.

• Probation period in the UAE cannot exceed six months.
• Completion of the probation period counts towards total service.

The employer can confirm dismissal during the probation period. First, they must give the employee 14 days’ written notice. This short notice period gives the employee time to prepare for the termination.

Employees on probation must give a month’s notice to change their work location. They can take one or two weeks off. However, for annual leave, a 14-day notice is required.

• Employers must notify the termination of the contract 14 days before the termination occurs.
• The employees can move from one job to another after giving one calendar month’s notice.
• The UAE also allows employees to resign, but they must do so with 14 days’ notice.

If someone leaves their job and returns to the UAE within three months, their new employer must pay the old employer for hiring them. However, this also aims to justify equity for the recruited employee’s initial employer.

According to UAE Labour Law, Article 10, a job contract can include rules that prevent you from working for a competitor. These rules should be fair and only as strict as needed to protect the business.

UAE labor law lets you work in many ways: full-time, part-time, temporary, casual, from home, or sharing a job. The requirements and terms of the agreement for each are cinematic.

Rights to Resign and Find New Employment

If you are on probation in the UAE, you can look for other jobs. If you decide to leave, you need to write to your boss 1 to 2 weeks before you quit. This gives your boss time to find someone new.

If you want to switch jobs and work for a new company in the country, you must give your employer a written notice one month before leaving. This helps with a smooth handover of your duties. The new company must also help pay for things like visa costs that the old company spent.

Employees who plan to leave the UAE must provide a 14-day notice. If they return within three months to start a new job, the new employer must compensate the previous employer for the recruitment costs. This rule ensures fairness to the initial employer.

• Employees in the UAE probation period need to give a written notice two weeks before resigning.
• One month’s notice is required for employees moving to a new job within the UAE.
• The new employer compensates the previous employer for recruitment costs, including visa fees.
• Employees must give 14 days’ notice before leaving the UAE and pay a fee if they return within three months.
• Employers cannot demand employees pay for previously incurred costs, ensuring fair treatment.

Employees should maintain professional conduct during the notice period. This means doing their work and handing over their tasks properly.

Termination of Employment During Probation

The UAE’s New Labour Law sets out rules for the probationary period. Employers now have to give at least 14 days’ notice before terminating an employee, a change from the old rule which required only one day’s notice. If a probationary employee plans to resign, they must provide a 14-day written notice if they intend to leave the UAE.

• Currently, employers must give 14 days’ notice before firing an employee during probation.
• The law protects workers in the UAE. Employees who want to quit their jobs must give their employer 14 days’ notice.
• Employers and employees can freely transfer their employees within the UAE, subject to giving 30 days’ notice of such transfer.
• Exceptional situations allow employees to leave without notice if the employer breaches obligations or assaults the employee.

Article 121 of the Labour Law outlines conditions employees can leave without notice. These include the employer breaching their obligations or assaulting the employee. Such conditions ensure employees are protected even during the probation period.

Moreover, Article 42 of the New Labour Law offers several causes of the contracts’ termination, such as contracting parties’ consent, contract expiration, natural death of the employer or the employee, and insolvency.

This was provided under Article 43; the party was entitled to an early termination of the contract with a written word accompanied by a proper cause. The linking notice has to be 30 to 90 days in total.

There are several ways to end the contractual agreement: mutual consent, contract mitigation, or the occurrence of other conditions as stated in the contract. The employer and the employee must both give written notice of the termination, and this must be for a proper cause.

Employees whose employers have dismissed them are allowed one waged work day per week during the notice period to search for other employment. This right ensures that employees can transition smoothly to new jobs.

• Employees terminated by the employer can take one unpaid day off per week to job hunt.
• The new law ensures fair treatment and smooth transitions for employees.

Sick Leave Policies and Gratuity During Probation

In the UAE, employees cannot claim sick benefits during their probation period. Employee evaluations are done, and non-permanent selections are made without necessarily accommodating the company’s complete duties and honors for its staff.

However, employees can apply for unpaid sickness if they are sick. This depends on the discretion of the employer and the company’s policy. Sick employees should ensure that the employer is informed of the illness. This enables a company to identify possible variations in the amount of work that has to be handled.

Concerning the rights and benefits of employees, the new law increases the duration of maternity leave in the private sector to 60 days. This consists of forty-five (45) days fully paid and fifteen (15) days on half pay.

• Paid sick leaves are not given to employees during the probation period in the UAE.
• Employees can apply for unpaid sick leaves depending on the employer’s wishes.
• Maternity leave in the private sector is now 60 days: 45 days’ pay and full salary per month, 15 days pay but half salary per month.

To be entitled to gratuities, one must work for one year and pay continuously. While serving probation, an employee cannot take gratuity leave if they decide to leave the company. However, compensation for the time they have worked and the notice period stated in their contract may be provided to them.

Like other countries, the UAE probation period does not affect the employee’s gratuity eligibility.

Meaning of Unlimited Contract and Limited Contracts

In the UAE, there are two main types of employment contracts: into two categories, namely, limited and unlimited.

A limited contract defines the timeline in terms of a period of hire. It can take up to 24 months and expires on the expiration date that was set for it.

An unlimited contract does not expire for a particular contract with the company. It may be ended through mutual agreement or by notice.

• In the UAE, a probation period is applicable for limited and unlimited contracts.
• The scope of limited contracts is that they can only be concluded for two years.
• Such contracts are much more versatile because they don’t have a predefined expiration date.
• During the probationary period, the employer and the employee can needlessly dismiss each other because the probation period has not been completed effectively on one week’s notice.
• The Emirati Cadre Competitiveness Council-NAFIS also recognizes and supports national student employment contracts.

Employees must understand the differences between these contracts. Both types include a probation period in the UAE to assess suitability.

Common Issues and Challenges

Common misunderstandings about the probation period include eligibility for benefits and notice periods.

Clear communication is crucial in resolving disputes during the probation period in the UAE.

• Conflicts can be inherent in relationships because of misunderstandings about the expectations in such relationships.
• The probation period in UAE may mystify employees, especially concerning their rights at this time.
• Regular feedback from employers helps address performance concerns.
• Employees should clarify benefits and notice periods during probation.
• Both parties should document all communications and agreements.

Conclusion

The probation period is relevant in the UAE context to evaluate the performance of job applicants. Employers are responsible for ensuring appropriate performance expectations and performance feedback. During this period, the employee’s rights and responsibilities should be understood. Any form of doubt in such circumstances should be cleared through a lawyer.

Proper communication is essential during probation. Feedback should be given periodically to address performance concerns. Probationary periods are necessary for understanding employees’ rights and obligations in the company. Each party should keep records of all messages exchanged and the negotiations made in the communication.

Frequently Asked Questions

Can Employees Take Paid Sick Leave During the Probationary Period in the UAE?

No, the employees are not provided paid sick leave during the probation period in the United Arab Emirates.

In the UAE, What Is the Maximum Probation Period Allowed for a New Employee?

In the case of the UAE, the probation period is six months.

Is It Possible for an Employee to Quit Their Job During the Probation Period?

Employees can resign by giving 14 days’ written notice if they are leaving the UAE, or 30 days’ written notice if the new employer is based in the UAE.

Do Employers Need to Give Gratuity to Employees, Especially During the Probation Period?

According to the current laws, employers do not need to provide a gratuity during the probation period in the UAE. Workers receive a gratuity once they reach the age of one year of service to the company.

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