Probation Period in the UAE & Notice Period 2025: Rules, Regulations, and Termination - Know Everything in Details

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Termination Rules in the UAE for Probation Period

In the UAE, new rules about probation periods are now in place. According to the updated Labour Law, when an employer wants to terminate someone during their probation period, they must give a 14-day notice. This is a change from the old law, which only required a one-day notice. Employees who are on probation and wish to leave must also give a 14-day notice if they plan to resign from the company.

The new rules aim to protect workers. So, if an employee wants to quit their job, they must give the employer 14 days' notice. Similarly, employers must provide 14 days' notice if they want to dismiss an employee during the probation period.

Employers and employees can also transfer employees within the UAE. However, a 30-day notice must be given before such a transfer can happen. In special cases, like when the employer doesn’t meet their obligations or if the employee is harmed, they can leave without giving any notice.

Notice Period in UAE and Employee Rights

Under the UAE Labour Law, employees can leave without giving notice if certain conditions are met. For example:

1. If the employer breaks the contract.
2. If the employer harms the employee.

These protections are especially important during the probation period to ensure fairness for workers. According to Article 121 of the Labour Law, an employee can leave their job without notice if the employer violates the terms of their contract or behaves improperly toward the employee.

Moreover, employees are also allowed 30 to 90 days of notice in case of contract termination due to other reasons, such as mutual agreement or the contract ending naturally. Employers and employees must both agree to the termination and provide written notice. This process ensures that both sides are treated fairly.

Sick Leave and Gratuity During Probation

During the probation period, employees are not entitled to sick leave benefits. However, they can ask for unpaid sick leave, but it depends on the employer’s decision and the company’s rules. If an employee falls ill, it’s important to let the employer know as soon as possible. This helps the company adjust work expectations.

As for maternity leave, the new law in the UAE extends the maternity leave in the private sector to:

1. 45 days with full pay.
2. 15 days with half pay.

The law also provides clarity on gratuity for employees. If an employee works for more than one year continuously, they are entitled to gratuity. However, employees who are on probation cannot receive gratuity leave if they decide to leave the company. Still, they may receive compensation for the time worked and the notice period as stated in their contract.

Understanding Employment Contracts and Probation Periods in the UAE

In the UAE, there are two main types of employment contracts: limited and unlimited. A limited contract is for a set period, usually up to 24 months. It ends on the date mentioned in the contract. On the other hand, an unlimited contract does not have an expiration date. It can be ended by either the employee or employer through mutual agreement or with a notice period in UAE.

Both limited and unlimited contracts in the UAE come with a probation period. This is a trial period where both the employee and employer can assess if the job is a good fit. If either party is unhappy, they can end the employment with just a one-week notice period in UAE.

For limited contracts:

1. The employment is set for two years.
2. It ends when the contract’s term expires.

For unlimited contracts:

1. The job continues indefinitely, as long as both sides agree to keep it going.
2. During the probation period, it’s easier to leave the job, but the notice period in UAE still applies, giving both parties time to plan.

The probation period is important because:

1. It helps employers decide if they want to keep the employee for a longer term.
2. It helps employees see if they like their new job.

In the UAE, national student employment contracts are supported by the Emirati Cadre Competitiveness Council-NAFIS.

Employees should understand the difference between limited and unlimited contracts. Both types include a probation period to make sure both the employee and employer are happy with the job. It’s important to know your notice period in UAE to avoid any surprises if the job doesn’t work out.

Read more about types of Leaves in UAE Labour Law: Annual Leave in UAE

What if the Company Wants to Let You Go During the Probation Period?

Your employer can also decide to end your job during your probation period. However, they must also give you some notice. According to the new laws, employers must give you 14 days’ notice in writing before they terminate your employment. This means that your employer has to let you know two weeks before your last day of work. This rule is there to give you time to prepare for the change. This rule protects employees during the probation period. It gives you some time to figure out what to do next, as well as how to find a new job. In the past, the notice period was only one day, but the new law changed it to 14 days. This new rule ensures that employers cannot terminate employees unfairly. If an employer wants to end your job during the probation period, a notice period is necessary.

Special Situations Where You Can Leave Without Notice

There are special situations when you can leave your job without giving any notice. This can happen if your employer breaks their promises to you, like not paying you your salary. Also, if your employer or someone at the company hurts you, you can leave without giving notice. These rules are there to protect employees during the probation period. These situations are very serious, and the law protects the employees. These exceptions are important to protect employees from mistreatment. If these things happen, you do not need to follow the notice period uae.

Sick Leave During the Probation Period

During your probation period, you won’t get paid if you're sick. This means you will not get paid for the days you are sick. However, your employer might allow you to take unpaid sick days, but it’s not mandatory. It depends on the company's rules and if your employer agrees. You should always tell your employer if you’re sick so they know why you’re not at work. Even though you do not have the right to paid sick days during your probation period, it is important to let your employer know if you’re sick. The probation period is a time when sick leave is handled a little differently.

What Happens if You Change Jobs in the UAE During Probation?

If you decide to leave your job during the probation period to work for another company in the UAE, there are a few things you and your new employer need to know.

1. You need to give your old employer one month's notice.
2. Your new company might have to pay your old company for the cost of hiring you. This includes the money they spent on your visa. This is to be fair to the first company, who invested in bringing you on board.

What if You Leave the UAE and Come Back?

If you decide to leave the UAE during your probation period, you must give a 14-day notice period. If you go back to the UAE to work within three months, your new employer might have to pay your old employer for the money they spent on hiring you. This rule ensures that the initial employer is fairly compensated. The notice period rule helps to ensure that a fair transition is in place. The probation period is impacted by this rule if you intend to return to work in the UAE within three months.

What About Gratuity During Probation?

Gratuity is a sum of money you get when you finish your employment. However, you do not get gratuity if you leave during your probation period. You only receive gratuity after working for at least one year with the company. But even if you leave during your probation period, you might get compensation for the time you worked and for the notice period. The laws about gratuity and the probation period are important to understand. During the probation period, there is no gratuity.

What Should You Do During Your Probation Period?

Here are a few tips for both employers and employees:

1. Communicate Clearly: Make sure you understand everything about your job and the rules of the probation period. If anything is not clear, ask your employer.
2. Give Feedback: Employers should provide regular feedback to their new hires to help them improve. Employees should also tell their employers if they have any problems.
3. Keep Records: It’s a good idea for both the employer and the employee to keep records of all communications and agreements.
4. Follow the Rules: Always remember the rules about notice period uae and other important regulations.

The Importance of a Proper Contract

Having a legally sound employment contract is very important. It should clearly state all the details of the job and the probation period. This helps to protect both the employer and the employee. The contract will make it clear about the probation period rules and the notice period uae.

Common Issues and Challenges During Probation

1. Misunderstandings: Common issues that arise during probation include misunderstandings about eligibility for benefits and notice periods.
2. Communication: Clear communication is essential to prevent and resolve conflicts and disputes.
3. Lack of Clarity: Employees may be confused about their rights during the probation period.
4. Performance Feedback: Regular feedback from employers can address performance concerns.
5. Documentation: It is essential to document all communications and agreements during probation.
6. Legal Advice: If there is any ambiguity, legal advice should be sought to clarify the rights and responsibilities.

Best Practices for Employers and Employees During Probation

1. Employers should:
   1. Clearly communicate job expectations and provide regular feedback to employees.
   2. Document all agreements and communications.
   3. Ensure all aspects of the employment relationship are articulated in an employment contract.
   4. Make sure they are complying with labor laws.
2. Employees should:
   1. Clarify their benefits and notice period requirements.
   2. Understand their rights and obligations.
   3. Maintain professional conduct throughout the probation period.
   4. Document all communications and agreements.
   5. Seek legal counsel in case of doubts.

Key Changes Under the New UAE Labor Law

1. The new UAE Labor Law, Federal Decree-Law No. 33 of 2021, has introduced major changes to probation rules.
2. Employers must now give at least 14 days' notice before terminating an employee on probation, unlike the previous rule that required only one day's notice.
3. The law aims to ensure fair treatment and smooth transitions for employees.

Employee Rights and Obligations During Probation

1. Notice Period for Resignation:
   1. If an employee decides to leave their job during the probation period to work for another company within the UAE, they are required to give their current employer at least 30 days' written notice.
   2. If an employee is leaving the UAE, they must provide at least 14 days' written notice before the termination date.
2. Compensation for Recruitment Costs:
   1. If an employee leaves during their probationary term to join another company in the UAE, the new employer is typically responsible for covering the costs associated with hiring that employee, unless there is an alternative agreement.
   2. If an employee leaves the UAE and returns to work in the country within three months, the new employer is also responsible for paying the recruitment costs incurred by the previous employer unless there is an alternative agreement.
3. Restrictions on Re-employment:
   1. An employee can only undergo probation once with the same employer.
   2. If a foreign employee leaves the country in violation of the notice period, they may be subject to a one-year ban on being issued a work permit in the UAE.
4. Professional Conduct: Employees should maintain professional behavior and complete their duties during the notice period.
5. Right to Resign: Employees have the right to resign during the probation period, but they must follow the stipulated notice periods.
6. Right to Seek New Employment: Employees on probation in the UAE are allowed to search for other job opportunities.
7. Leaving Without Notice: In exceptional circumstances, employees can leave their job without notice if the employer breaches their obligations or assaults the employee. Article 121 of the Labour Law outlines these conditions.

Employer Rights and Obligations During Probation

1. Termination of Employment: Employers can terminate an employee's employment during the probation period but must provide the employee with a minimum of 14 days' written notice prior to the termination.
2. Compensation for Recruitment Costs: If an employee leaves during probation to work for another company in the UAE, the new employer is typically responsible for reimbursing the original employer for the recruitment costs.
3. Prohibition on Extending Probation: Employers cannot extend the probation period beyond the maximum of six months.
4. Visa Costs: According to UAE labor law, the employer must cover all visa costs for the employee and cannot recover these costs from the employee.

Consequences of Not Adhering to Notice Requirements

If either the employer or employee ends the employment agreement without giving the required notice, they must compensate the other party with wages equivalent to the notice period or the remaining portion of the notice period. This rule applies even if the termination occurs during the probation period.

Leave and Benefits During Probation

1. Annual Leave: Employees are generally not entitled to take annual leave during their probationary period.
2. Sick Leave:
   1. Employees are generally not entitled to paid sick leave during their probation period.
   2. However, employers may allow employees to take unpaid sick leave depending on the company's policy and their discretion.

How Timechart Can Help Businesses, Employees, and Managers

Timechart offers a range of tools and features designed to streamline workforce management. Its user-friendly interface and smart functionalities provide significant benefits for businesses, employees, and managers alike. Let’s explore how Timechart simplifies attendance tracking, unpaid leave management, and overall employee engagement.

Benefits for Businesses

1. Efficient Leave Management:
   • Timechart automates leave tracking, making it easy to manage unpaid leave, annual leave, and sick leave.
   • Businesses can ensure compliance with Labour Laws, reducing legal risks.
2. Accurate Attendance Tracking:
   • Timechart’s biometric attendance system eliminates manual errors and provides real-time updates on employee attendance.
   • Mobile time attendance capabilities ensure remote and on-site employees are accounted for.
3. Improved Compliance:
   • Built-in features help employers stay updated with labour law requirements, including Hajj leave, extended sick leave, and maternity leave policies.
   • Customized reports ensure accurate records for audits or inspections.
4. Cost Savings:
   • Automating processes reduces the need for manual administration, saving time and resources.
   • Detailed analytics provide insights into employee productivity and absenteeism trends, helping businesses optimize their workforce.

Benefits for Employees

1. Transparency in Leave Tracking:
   • Employees can easily apply for unpaid leave and monitor their leave balances using the Timechart app.
   • Automated notifications ensure they are updated on the status of their leave requests.
2. Flexibility for Remote Work:
   • Timechart’s mobile features enable employees to log attendance from anywhere, ensuring seamless workflow for remote or hybrid teams.
3. Access to Records:
   • Employees can access their attendance history, overtime records, and leave applications anytime, promoting trust and transparency.
4. Stress-Free Compliance:
   • With clear visibility into labour law-compliant leave policies, employees feel secure and confident in their entitlements.

Benefits for Managers

1. Centralized Management:
   • Managers can oversee attendance, unpaid leave, and sick leave requests from a single dashboard.
   • Real-time updates allow managers to make informed decisions quickly.
2. Improved Productivity:
   • With attendance data and leave patterns readily available, managers can allocate tasks effectively, avoiding understaffing or overburdening employees.
3. Enhanced Communication:
   • Timechart bridges communication gaps by enabling direct updates on leave approvals, attendance discrepancies, or schedule changes.
4. Performance Insights:
   • Analytics and reports generated by Timechart provide a clear picture of employee performance, enabling proactive management.

Additional Benefits

1. Customizable Policies:
   • Timechart allows businesses to customize leave and attendance policies based on their unique needs while remaining compliant with laws.
2. Cloud-Based Accessibility:
   • As a cloud-based platform, Timechart ensures secure access to data from anywhere, promoting flexibility and scalability.
3. Integration with Payroll:
   • Timechart integrates seamlessly with payroll systems, ensuring accurate calculation of unpaid leave deductions and other benefits.
4. Enhanced Employee Engagement:
   • By reducing administrative burdens and improving communication, Timechart fosters a more engaged and motivated workforce.

Why Choose Timechart?

Timechart’s advanced yet simple tools are designed to meet the unique needs of businesses in the Middle East. It ensures compliance with local labour laws, enhances operational efficiency, and promotes transparency at every level. Whether managing unpaid leave, streamlining attendance tracking, or improving employee satisfaction, Timechart stands out as an invaluable tool for modern workforce management.

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Frequently Asked Questions about the Probation Period in the UAE

1. What is the maximum duration of a probation period in the UAE?

   The maximum probation period is six months from the start of employment. It cannot be extended beyond this period.

2. Can an employer terminate an employee during probation?

   Yes, an employer can terminate an employee during probation, but they must provide a minimum of 14 days' written notice.

3. Can an employee resign during their probation period?

   Yes, an employee can resign during probation. They must give 14 days' written notice if leaving the UAE, or 30 days' written notice if moving to another job within the UAE.

4. Is the probation period included in an employee's total period of service?

   Yes, if the employee successfully completes the probation period and continues working for the company, the probation period is included in their total service.

5. Can an employee take annual leave while on probation?

   Generally, employees are not permitted to take annual leave during the probation period.

6. Is an employee entitled to paid sick leave during probation?

   No, employees are not entitled to paid sick leave during the probation period. However, some employers may allow unpaid sick leave at their discretion.

7. If an employee resigns during their probation period to work for another company, who pays the recruitment costs?

   The new employer is generally responsible for reimbursing the previous employer for the recruitment costs, unless otherwise agreed. This also applies if the employee returns to the UAE within three months for a new job.

8. Are employees entitled to gratuity if they leave during the probation period?

   No, employees are not entitled to gratuity if they leave during probation. Gratuity is usually only given after one year of service.

9. What happens if either party ends the employment contract without the required notice?

   If either party terminates the contract without the required notice, they must compensate the other party with wages equivalent to the notice period or the remaining portion of the notice period.

10. Can an employee be placed on probation more than once by the same employer?

    No, an employee can only be placed on probation once by the same employer.

Conclusion - probation period in the UAE

The probation period in the UAE is a critical phase in the employment lifecycle. It's a period of evaluation for both the employer and the employee. Understanding the rules, regulations, and obligations during this time is important to avoid legal issues. Employers must manage this period effectively to evaluate and manage their new hires well, and employees must be aware of their rights and obligations to ensure they are fairly treated. Proper communication, clear documentation, and adherence to the labor laws are essential to ensure a smooth and legally compliant probation process.

Disclaimer:

The information provided in this content is for general informational purposes only and should not be used for legal purposes. It may contain inaccuracies or human errors, and we are not liable for any actions taken based on this information. We strongly advise you to consult with your HR department or refer to official government websites for the most accurate and up-to-date information. We do not guarantee that the content will be regularly updated, and we are not responsible for any outcomes resulting from the use of this information.

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