UAE Probation Period: Rights of Laid-Off Workers

What Do Employees Laid Off During Probation in the UAE Receive?

The labor market dynamics in the United Arab Emirates, especially in Dubai, present numerous new opportunities and challenges for employees. One common question, particularly affecting newcomers, is what rights and compensation are available to them if their employment is terminated during the probationary period. The situation becomes even more complicated if the employer ceases operations during the trial period. Below, we explore this matter in detail.

Probation Period Regulations in the UAE

According to UAE Labor Law (Federal Decree-Law No. 33 of 2021), employers have the right to implement a probationary period that cannot exceed six months. During the probationary period, both the employer and the employee may terminate the employment relationship, but only in writing and with a specified notice period.

According to Section 9, Article (1) of the law:

“The employer may prescribe a probationary period of up to six months for the employee from the date of the commencement of work. The employer is required to notify the employee in writing at least 14 days before the termination date if they intend to terminate the employment during the probation period.”

This means that the employer is obliged to communicate their intention in writing at least 14 days in advance. If the employer fails to comply, the employee is entitled to compensation equivalent to 14 days' wages.

What Happens If the Company Ceases Operations During the Probation Period?

If the employer ceases operations, it is legally equivalent to a termination, and the employees' employment is automatically terminated. The problem arises if the cessation occurs suddenly, and employees do not receive adequate notice or severance pay.

Even if termination occurs during the probation, the employer is obligated to pay the following:

Unpaid wages up to the last working day

Compensation for accumulated, unused leave days

Wages for the 14-day notice period (if no prior notice was given)

This applies even if the employee has not completed one year of service.

Severance Pay – Is It Due or Not Due?

According to UAE labor law, an end-of-service gratuity is only due to those who have completed at least one year of uninterrupted service. This is stated in Section 51, Article (2):

“A full-time foreign employee who has completed at least one year of continuous service is entitled to end-of-service gratuity at the end of service based on the basic wage as follows:

a. 21 days' wage for each of the first five years of service

b. 30 days' wage for each year beyond five years”

Based on this, employees dismissed during the probation period are not entitled to severance pay, as they have not fulfilled the one-year requirement.

What Can An Employee Do If They Do Not Receive Their Entitlements?

If the employer does not pay the above – for example, does not reimburse the unpaid wages or the notice period – the employee has the right to file a complaint with the UAE Ministry of Human Resources and Emiratisation (MoHRE). The process is straightforward and available online. After filing the complaint, the ministry attempts to mediate between the parties, but if this does not result in a resolution, an official investigation may be launched, which could ultimately be taken to court.

During the complaint, attention should be paid to the following:

Ensure all documents are available: contract, payslips, emails, communications with the employer.

Precisely document the start and last day of employment.

Provide a detailed list of the amounts claimed.

What Can Employees Expect?

The laws are designed to protect the employee, even if the employment relationship ends during the probationary period. While severance pay is not due in such cases, employees can claim all other benefits accumulated during employment. Emphasis is placed on having written documentation – it is advisable to retain all work-related information, emails, or messages.

Summary

The UAE labor law strives to balance the rights of employers and employees. The rules for the probation period aim to allow both parties the opportunity to review the relationship. However, this does not mean that the employee remains unprotected. If a company ceases operations during the probation period, the employee is entitled to claim unpaid wages, leave days, and compensation for the 14-day notice period. Although severance pay is not due in such cases, the fundamental laws clearly stipulate the benefits an employee is entitled to. If these are not fulfilled, MoHRE can intervene and provide the employee with legal recourse.

(Source of the article: Based on the Ministry of Human Resources and Emiratisation (MoHRE) and Law No. 33 of 2021.)