Probationary Employment and Resignation in UAE: Legal Consequences Explored
The United Arab Emirates (UAE) has introduced new regulations aimed at providing clarity and certainty for both employees and employers regarding resignation during the probation period. The regulations, outlined in Federal Decree-Law No. (33) of 2021 on the Regulation of Employment Relationships, have been shared by the UAE Ministry of Human Resources and Emiratisation (MoHRE).
According to the new rules, an employee’s probation period cannot exceed six months. Employees are allowed to resign during the probation period, but they must adhere to specific notice and compensation requirements.
If an employee intends to move to another job within the UAE, they must give at least one month’s notice to their employer. Alternatively, they can compensate the employer with an amount equivalent to their wage for the notice period or the remaining duration. The employer may also claim recruitment and contract costs from the new employer in such cases.
If an employee wishes to terminate their contract during probation to leave the country entirely, they must provide at least 14 days' notice before termination or pay compensation equal to their full wage for the notice period or the remaining part. Failure to comply with these notice or compensation requirements can lead to penalties, including a one-year ban on issuing new work permits to the employee in the UAE from the date of departure.
The regulations aim to balance employers’ rights with labor market flexibility and competitiveness while ensuring fairness during the probation period. Any probationary term longer than six months is unlawful according to this law. Employees who wish to change jobs within the UAE must notify their employer at least one month in advance.
It is important to note that the regulations do not specify any penalties for employees who resign during their probation period without following the proper procedure, outside of the ineligibility for a work permit for one year. Additionally, the regulations do not provide any information about the notice period required for an employee to resign from a job outside of the probation period.
The new regulations are expected to enhance labor market flexibility, competitiveness, and ease of doing business in the UAE while protecting the employer's rights. Employers and employees are advised to familiarise themselves with the new regulations to ensure compliance.
[1] UAE Federal Decree-Law No. (33) of 2021 on the Regulation of Employment Relationships [3] UAE Ministry of Human Resources and Emiratisation (MoHRE) [5] Gulf News, "UAE issues new labour law to regulate probation period," May 30, 2021.
- The new regulations, as outlined in UAE Federal Decree-Law No. (33) of 2021, aim to provide clarity in employment relationships, affecting both employees and employers.
- These regulations stipulate that employees, during the probation period, must give at least one month’s notice or compensation equivalent to their wage for the notice period or the remaining duration, should they wish to move to another job within the UAE.
- For employees intending to terminate their contract during probation to leave the country entirely, the regulations require at least 14 days' notice or payment of compensation equal to the full wage for the notice period or the remaining part.
- The UAE Ministry of Human Resources and Emiratisation (MoHRE) has shared these new rules, which are expected to promote labor market flexibility, competitiveness, and ease of doing business in the UAE while safeguarding employers' rights.
