
MoHRE Outlines Conditions Allowing Employee Transfer to Another Employer During the Probationary Period
Notice periods, compensation rules and non-compete provisions clarified under UAE labour law

The Ministry of Human Resources and Emiratisation (MoHRE) has confirmed that during the probationary period, an employee may be transferred to another employer’s establishment within the country only if specific conditions are met.
These conditions are: the employee must either notify the original employer at least one month in advance or compensate them with a sum equal to the worker’s wage for the notice period or the remaining period. The original employer also has the right to demand compensation from the new employer for the costs of recruiting and contracting with the worker.
The employee must further notify the original employer at least 14 days before the specified termination date, or compensate the employer with an amount equal to the total wage for the entire notice period, or compensate them with an amount equal to the wage for the remaining period.
If the notice period is not respected, the worker will not be granted a work permit for one year from the date of resignation.
The Ministry clarified that after fulfilling the following conditions, the parties to the contract are permitted to change its type: the consent of both the employee and the employer; fulfilment of all obligations under the first contract; and compliance with the procedures specified by the Ministry.
The Ministry further explained that the law and its regulations allow employers to protect the confidentiality of their business without compromising its interests or the rights of employees.
A number of controls have been set for enforcing the non-competition clause, including the geographical scope of application, the duration of the clause (not exceeding two years from contract termination), and the nature of the work that could seriously harm the employer’s legitimate interests.
In the event of a dispute over a non-competition clause that cannot be settled amicably, the matter will be referred to the courts, with the burden of proof for damages resting with the employer.
The non-competition clause does not apply if the contract is terminated due to the employer’s fault or a breach of their legal or contractual obligations. It is also permissible for both parties to agree in writing not to enforce the non-competition clause after termination of the employment contract.
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