UAE Labour Law Probation Period: Rules for Switching Jobs and Transfers

Moving jobs while still on probation in the UAE is now governed by clearer rules under the UAE labour law probation period. Employers and employees both face specific steps and potential costs. This article explains what you must know about transfers, notices, compensation and legal limits under the new framework.  

What changed — the headline rules

The Ministry of Human Resources and Emiratisation has set four core conditions for job transfers during probation. Workers who want to move must give at least one month’s written notice to their current employer or pay an amount equal to that notice period. The original employer can claim recruitment and contracting costs from the new employer. Employees also must give 14 days’ notice before terminating a contract or pay equivalent compensation. These measures are intended to balance mobility with employer protection.

How long is probation and what does it mean

The revised labour law limits probation to a maximum of six months from the start date. If an employee completes probation and continues working, that time counts toward service. Employers may not lawfully extend probation beyond six months. During probation, certain benefits such as annual leave and paid sick leave generally do not apply.

Notice, compensation and hiring costs — practical details

If you plan to resign and join another company in the UAE during probation, you must give your current employer 30 days’ written notice. The new employer typically reimburses the original employer’s recruitment or contracting costs, unless the parties agree otherwise. If either party fails to give the required notice, they must compensate the other with wages equal to the notice period or the remainder of it. These rules make timing and paperwork essential.

Resignation and termination during probation

Both employers and employees can end the contract during probation. Employers are obliged to give a minimum of 14 days’ written notice prior to termination. Employees who want to leave the country must also give 14 days’ notice. If an employer dismisses an employee for a lawful reason, the usual termination rules apply; but an unlawful dismissal can be challenged as arbitrary under official guidance. For employees thinking about resignation during probation, know that entitlement to end-of-service gratuity is not available unless the worker serves at least one year.

Non-compete clauses and protections

Employers may include non-compete clauses to protect trade secrets. Such clauses must be specific and proportionate. The law requires limits on geographic scope, duration (no longer than two years) and the type of restricted work. If a dispute arises, courts will typically place the burden of proof on the employer. A non-compete will not apply if the employer terminated the contract unlawfully or failed to meet contractual obligations.

Penalties and labour ban risk

If a worker leaves in violation of the notice provisions or other probation rules, the law allows penalties. One practical consequence is that a worker who departs improperly may be denied a new UAE work permit for one year. That restriction can significantly hinder re-employment in the UAE. Employers and employees should therefore handle departures by the book.

Practical checklist for employees

1. Read your contract closely.
2. Count days: probation cannot exceed six months.
3. If switching employers in the UAE, give one month’s written notice or be ready to compensate.
4. If leaving the country, provide 14 days’ notice.
5. Ask whether the new employer will reimburse the previous employer’s hiring costs.
6. Check for any non-compete clause and its scope.

Following this checklist reduces surprises and legal risk.

Practical checklist for employers

1. Document recruitment and contracting costs clearly.
2. State probation duration and notice periods in the contract.
3. Use narrowly drafted non-compete clauses when needed.
4. Serve a written termination notice of at least 14 days if ending employment during probation.
5. Follow official procedures when amending contracts.

Clear documentation helps enforce rights and defend against disputes.

Common questions answered

Q: Can I be rehired by the same company on a new probation?
A: No. Probationary employment cannot be repeated with the same employer. The law prevents appointing an employee to probation more than once with the same company.

Q: Who pays the visa and hiring costs?
A: Employers must cover visa costs. If you move employers during probation, the new employer generally reimburses hiring costs to the original employer unless the parties agree otherwise.

Q: Is termination while on probation the same as arbitrary dismissal?
A: No. An employer may terminate employment for lawful reasons by giving the required notice. Arbitrary dismissal—such as terminating an employee for filing a valid complaint—remains strictly prohibited under UAE labour law.

Conclusion

If you are on probation and considering a transfer, act early. Serve the required notices in writing. Confirm whether the incoming employer will reimburse hiring costs. Review any non-compete clause before signing. Keep written records of all communications. These steps limit legal exposure and help you move smoothly. 

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