Question: What are the rules regarding probation periods for mainland UAE companies? Is the six-month probation period mandatory, or can it be shortened at the employer’s discretion? I’m considering a job move and would like to negotiate a shorter probation period. Please advise.
Answer: In the UAE, a probation period of an employee during an employment period with an employer is defined under Article 1 of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, which states as, “Probationary Period: The period that may be required by the employer, which enables the latter to evaluate the performance of the employee and allows the employee to become familiar with his job duties and the work environment, according to which the employment contract is either continued or terminated as per the provisions hereof.”
An employer may place a new employee under a probationary period of up to six months; as stated in Article 9(1) of the UAE Employment Law, "An employer may appoint the employee under a probationary period not exceeding six (6) months from the date of commencement of work."
An employee who intends to resign during the probation period and join a new employer, thereafter, should serve one month's notice to his or her current employer.
A new employer shall compensate the current employer for recruitment or contract costs. This is under Article 9 (3) of the UAE Employment Law, which states: “An employee who intends to move on to another employer in the UAE during the probationary period shall notify his current employer in writing at least one month before the date on which he intends to terminate the contract, and unless agreed otherwise, the new employer shall compensate the first employer for recruitment or contract costs.”
If either an employee or an employer terminates an employment contract without following the rules set out in this article, the party who terminates must pay compensation to the other party. This is under Article 9(5) of the UAE Employment Law, “If either party terminates the employment contract without taking into consideration the provisions of this Article, it shall pay to the other party compensation equal to the employee’s wages for the notice period or the remaining period of the notice period.”
Furthermore, the applicable probationary period must be expressly stated in the employment contract. This is in accordance with the Article (10) of Cabinet Resolution No.1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations, “Subject to the provisions of Article (8) of the Decree-Law: The employment contract should include the name and address of the employer, the name, nationality and date of birth of the employee, proof of his identity, his qualification, the job or occupation, the date of work commencement, the workplace, the working hours, the rest days, the probationary period, if any, the term of the contract, the wage agreed upon including the benefits and allowances, the annual leave entitlements, the notice period, the procedures for terminating the employment contract and any other data determined by the ministry in order to regulate the relationship between both parties.”
Based on the aforementioned provisions of law, a probation period is a maximum of six months. However, the applicable probation period is mentioned in the employment contract, and you are expected to adhere to the same. If you intend to reduce your probation period or if you intend to resign without serving the stipulated notice period, then you may have to compensate your employer monetarily, or you may consider mutually agreeing with your employer to terminate your employment contract by waiving off the notice period.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
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