Employment contracts surrounds numerous vital clauses, and it is crucial to comply with UAE regulations. One of the most important aspects is the probation period, which must be clearly understood by both employees and employers to ensure alignment with UAE laws. Proper management of this term can lead to significant consequences for both parties, and effectively addressing it sets a solid foundation for a new employee.
What is a Probation Period?
What are the Probation Period Rules in the UAE?
Probation period rules in the UAE are set by the Ministry of Labour (MoL) and both employers and your employees should have a good understanding of them before proceeding into new contracts. It guarantees that both parties are protected and know your rights under the UAE labour law.
Here are the UAE probation period rules and regulations:
Rule #1: The maximum period of probation is Six months in the UAE
According to the ministry of labor, an employee can be kept under a probation period for a maximum of six months. Some companies also choose to have a shorter probation period of about three months as well. It is prohibited by law to extend the probation period of an employee beyond six months.
Rule #2: A Company can terminate your employment without notice during the probation period
If you are considered unqualified for the job position you hold during the probationary period, the employer is entitled to terminate your employment without offering any severance pay or compensation benefits.
Rule #3: As an employee, you have the right to resign at any time during your probation period
The employee has the right to resign at any point during the probation period. It is important for the employee to carefully read the contract, as some companies might right a clause that you have to serve a notice period even during the probation period. The duration of this notice depends upon what is mentioned in the employement contract.
Rule #4: An employee is not entitled to any paid sick leaves during the probation period
An employee is not entitled to any paid sick leaves during the probation period according to the ministry of labor. So, if the employee is genuinely sick, It is advised to talk to your employer in advance and they may grant paid sick leave on mutual understanding.
Rule #5 You are not entitled to gratuity if discontinued during the probation period
You are not paid gratuity if you leave during the probation period. If a company hires you as a permanent employee after the probation period and you complete an entire year of service, you are entitled to the end of service benefits in which the probation period is included as well.
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Termination without notice during the probation period
Article 120 of the UAE Labour Law outlines the conditions for terminating employment during the probationary period. The updated legislation mandates that all employees undergoing probation receive a notice period of 14 days.
But what if the employee wants to leave? The exact number of notice days depends on the employee’s intent. According to the law:
a. If the employee intends to leave the UAE, they need to give you 14 days notice.
b. If the employee is moving to a new job within the UAE, they must give 30 days’ notice.
Employees may also resign or depart from their employer under certain exceptional circumstances. These situations are detailed in Article No. 121 of the Labour Law. As per this provision, an employee is entitled to leave without prior notice if the employer fails to fulfill their obligations to the employee or if the employee is subjected to an assault by the employer or a legal representative.
Resignation during the probation period in the UAE
In the event that an employee chooses to end their contract within the probation period, the employer could be eligible for some form of compensation. As noted earlier, the notice period is lengthened if the employee resigns to take up a new job.
Furthermore, the new employer may have a responsibility to compensate the former employer for any costs incurred, including visa fees. However, employers cannot ask employees to pay for any costs they have already incurred.
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Dated: 12 May 2025
Written by Balbir Singh
