Probation Period Under UAE Labour Law: Statutory Rights, Employer Obligations, and Termination Rules Explained

Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the UAE Labour Law) is the principal legislation governing employment relationships in the United Arab Emirates. It regulates the rights and obligations of employers and workers, including contract formation, termination, notice requirements, and workforce mobility.

 

Statutory Nature and Duration of the Probation Period

 

Pursuant to Article 9(1) of the UAE Labour Law, an employer may appoint a worker under a probation period not exceeding six (6) months from the commencement of work. During this period, the employer retains the right to terminate the worker’s service, provided the worker is given at least fourteen (14) days’ written notice prior to the intended termination date.

 

The probation period is therefore statutorily capped and subject to mandatory notice requirements. Any contractual clause seeking to extend the probation period beyond six months, or to dispense with the notice obligation, would be unenforceable.

 

One-Time Probation and Continuity of Service

 

Under Article 9(2), a worker may not be placed on probation more than once by the same employer. Upon successful completion of probation and continuation in employment, the contract becomes fully effective in accordance with the agreed terms. Importantly, the probation period is counted as part of the worker’s total service period, carrying legal significance for future employment-related entitlements.

 

Movement to Another Employer During Probation

 

Article 9 draws a clear distinction between movement within the UAE and departure from the State.

 

In accordance with Article 9(3), if a worker wishes to move to another employer within the UAE during the probation period, the worker must notify the current employer in writing at least one (1) month in advance of the intended termination date. In such cases, the new employer is required to compensate the original employer for recruitment or contracting costs, unless otherwise agreed between the parties.

 

This provision reflects a statutory allocation of financial responsibility and is not dependent on fault or misconduct.

 

Termination During Probation to Leave the UAE

 

For foreign workers intending to terminate their employment during probation in order to leave the UAE, Article 9(4) applies. The worker must provide the employer with fourteen (14) days’ written notice prior to termination. If the worker subsequently returns to the UAE and obtains a new work permit within three (3) months from the date of departure, the obligation to compensate the original employer for recruitment costs shifts to the new employer, unless an agreement provides otherwise.

 

Consequences of Non-Compliance with Article 9

 

Article 9 prescribes direct consequences for non-compliance. Under Article 9(5), if either party terminates the employment contract in breach of the probation-related requirements, the defaulting party must compensate the other with an amount equal to the worker’s remuneration for the applicable notice period, or the remaining portion thereof.

 

Further, Article 9(6) provides that if a foreign worker leaves the UAE without complying with the statutory probation requirements, the worker shall not be granted a work permit in the State for a period of one (1) year from the date of departure.

 

Ministerial Discretion and Regulatory Exceptions

 

The law also recognises regulatory flexibility. Under Article 9(7), the Ministry of Human Resources and Emiratisation may exempt certain job categories, skill levels, or workers from the work permit restrictions referred to in Articles 9(4) and 9(6), in accordance with the rules and procedures set out in the Implementing Regulations of the UAE Labour Law.

 

Conclusion

 

Article 9 of the UAE Labour Law establishes a comprehensive and self-contained statutory framework governing probationary employment. It balances an employer’s need to assess suitability with a worker’s right to notice, continuity of service, and regulated mobility. Compliance with Article 9 is mandatory and cannot be diluted by contractual agreement. Employers and workers alike must therefore treat probation not as an informal trial period, but as a legally regulated phase of employment with clearly defined rights, obligations, and consequences.