UAE Work Rules: Navigating Probation Periods

UAE Labor Law: Probationary Period Rules and Employer Options

In the United Arab Emirates, the legal framework for probationary periods is determined by Federal Law No. 33 of 2021, which governs employment relations. The purpose of the probationary period is for the employer to evaluate the new employee’s performance while the employee familiarizes themselves with their role and workplace environment.

Legal Background and Duration

Maximum Duration: According to Article 9 of the law, the probationary period can last up to six months from the start date of employment. A longer probationary period is not permitted.

Shorter Probationary Period: Although six months is the upper limit, the employer may choose to apply a shorter duration. However, this must always be specified in the employment contract.

Termination During Probation

Transfer to a New Employer: If an employee wishes to move to another company within the UAE during the probationary period, they are required to notify their current employer in writing at least one month beforehand.

Cost Compensation: In such a case, the new employer is obligated to reimburse the previous employer for recruitment or contract costs, unless another agreement is reached.

Breach of Termination Rules

If the employee or employer fails to adhere to the required notice period, the party terminating must compensate the other party with an amount equal to the salary for the notice period.

Contractual Requirements

The Cabinet Resolution No. 1 of 2022 stipulates that the employment contract must include the length of the probationary period, as well as details regarding termination and other job conditions.

The probationary period outlined in the employment contract must be adhered to unless modified by mutual agreement.

Practical Advice

If you wish to shorten the probationary period, it is advisable to clarify this before the contract is signed and have it documented in writing. Subsequent modifications are possible but require the employer's consent. The waiver of the notice period is also determined by the mutual agreement of the parties.

(Source of the article is based on UAE Employment Law.)