Probation Period in UAE: an Overview
HLB UAE Payroll Team
A probationary period is a time frame set by an employer to assess whether a new hire is a competent performer for the position. The first few months are for coaching the new hire to achieve the required standard, and there by evaluating the performance, whether the new hire is qualified enough to take the next step. If the evaluation is completed successfully, the employee will be hired by the employer permanently.
The probation period in a company usually runs for 3–6 months from the date of hire, but it may also depend on the agreement set out in the work contract.
The UAE Ministry of Labour has set out certain guidelines with regard to the employment of an individual during the probation period. Here we have covered some important points about probation in the UAE.
- What is the maximum period of probation?
An employee can be held under a probation period for a maximum of six months. Some companies also choose to have a shorter probation period of about two or three months. It is prohibited to extend the probation period of an employee beyond six months.
- Is the probation period included in the employees’ total period of service?
Yes. If the employee passes the probationary period, and remains in service, the probation period is included in the employee’s total period of service.
- Can an employer terminate an employee during probation?
If an employee is considered to be incompetent for the job position that they are currently enrolled in during the probation period, an employer has every right to terminate the services with prior notice and with no compensation.
- If an employer terminates an employee during probation, is the employee eligible for any end-of-service benefit?
No, the employer can terminate the services of the employee without notice and without payment of an end-of-service benefit during the probation period.
- Can an employee resign during probation?
During the probation period, an employee has the right to resign at any point. Also, it is important to ensure that the employees read the contract carefully, as some companies might keep a clause that says he/she has to serve a notice period even during the probation period. The duration of this notice period depends upon what is mentioned in the contract.
- Can an employee take annual leave during probation?
No, employees cannot take available annual leave during the probation period.
- Can an employee take sick leave during probation?
No, employees cannot take sick leave during the probation period.
- Does an employee get a gratuity if they resign during probation?
An employee is not entitled to a gratuity if he/she leaves during the probation period. An employee should receive a gratuity only after completing one year of service at the company.For more details about gratuity, follow the below link.
- Does an employer have the right to extend probation for a second time in the same company?
No, an employer cannot put an employee on probation for a second time in the same company.
- Who bears the visa cost if an employee is terminated during probation?
As per UAE Labour Law, an employer has to bear all the visa expenses for an employee and cannot deduct these from the employee.
Payroll Service in UAE
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business. One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process, click here
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subject to change and is not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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