New Labor Law about Probation Period in UAE

Before appointing an employee to a permanent position, the United Arab Emirates conducts a probationary period to evaluate their performance. The employee goes through a thorough review and performance screening while on probation. If the candidate is qualified for the specific position, the employer will hire them as a permanent employee. We provide you with the best knowledge on the UAE labor law Probation period.

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    Comparison between the Previous UAE Labor Law and New UAE Labor Law

    Additional clauses and significant changes to probation under the new United Arab Emirates Labour Act.

    The Ministry of Human Resources and Emiratification (MOHRE) has announced the introduction of Federal Decree-Law No. 33 of 2021 which will regulate labour relations and employment practice in the UAE. The new UAE Labour Act came into force on February 2, 2022 and will replace the current UAE Labour Act in its entirety. The probation period in Dubai applies to every employee who serves under UAE.

    The notification requirements for the duration of the probationary period applied by the new labor law are:

    UAE Labor Law Probationary Requirements

    Probation period UAE labor law requirements apply to every employee. The following are citations from the UAE Labor Law regarding the UAE probationary period:

    Residence visa provision

    All new employees must obtain a residence visa for the UAE from their employer. It must be offered even during probation.

    Probation period

    The UAE Labor Law states that a new employee must serve a six-month probationary period before becoming a permanent employee if both parties agree.

    Final Compensation

    Employees who have not worked for the company for at least a year are not eligible for end-of-service benefits.

    Visa processing Fee Reimbursement

    The UAE Labor Law states that it is unlawful for employers to request payment of visa application fees when terminating employee employment.

    Termination of contract during the probation period

    Under UAE Federal Law article 120, if it is said that an employee is not producing enough, the employer may terminate the employment contract. It can also happen even if an employee disobeys company policy or requirements outlined in the Labor Law.

    Eligibility for sick leave during probation period

    A worker in their probationary period does not yet have access to sick leave. When a need arises before serving the probation period, you may still use sick leave, which typically becomes effective after serving the probation period. In majority time, the total amount of sick leave taken while on probation is unpaid. A review of the employment contract will help you understand sick leave policies during the probationary period.

    Resignation during Probation

    For an acceptable reason, an employee can request a leave of absence while on probation. However, they will not be eligible for any end-of-service benefits. As stated earlier, it solely depends on the employment contract.

    Extension of Probation Period

    Six months is the maximum probation period. Although it can be less than six months, it shouldn’t last longer than six months. According to the Federal Law of the United Arab Emirates, six months should be sufficient to evaluate whether to keep an employee.

    Salary during Probation

    The full payment of an employee’s salary might not happen until the probationary period is over. Employer-employee agreements determine the amount of pay during the probationary period.

     

    Frequently Asked Questions (FAQ’s)

    1. In UAE, how long is the probation period?

      In UAE, the employee probation period is typically three to six months long. It is against the law to extend the probationary period beyond six months.

    2. Does the employee have to pay for my Visa charges if terminated while on probation?

      Upon termination while on probation, the employee is not responsible for paying back or compensating your employer visa expenses. The UAE Labour Law states that the employer is responsible for paying the employee visa cost and that the employee is not entitled to any reimbursement.

    3. Are employees compensated during probationary period?

      Yes, employees do receive compensation. However, depending on the policies of some employers, the employee might not begin receiving the full until the probationary period completion.

    4. Does the employee have to serve notice period while on probation?

      If the employee is not a permanent, the employee is exempt from serving the required 30 days’ notice. The employee can give one-week advance notice of departure.

    5. Can the employee take paid sick leaves in an emergency while on probation?

      In the UAE, employees cannot take advantage of paid sick leave while on probation. If the employee has an emergency, he/she can discuss it with the employer. The employer may recommend taking unpaid time off in the case of an emergency.

    6. Can the employee quit the job while still on probation in the UAE?

      You can, but the employee doesn’t get paid a gratuity for it.

    7. What happens in the UAE following the probationary period?

      After the probationary period, the employee is either offered permanent employment or the contract for the new hire is terminated.

    8. Is the probationary period counted as part of the total service time of the employee?

      Yes. The probationary period is included in an employee’s total service period if the employee passes the probationary period and remains employed.

    9. Can an employee take Annual leave while on probation?

      Employees on probation are not permitted to take annual leave.

    10. Is it possible for an employer to hire probationary employees more than once at the same company?

      The same company may not appoint a probationary employee more than once.

    Be part of new change, be part of HLB HAMT Services

    The core of the business at HLB HAMT is technology, and the company strives to pursue and provide high-quality audit and advisory services. Contact HLB HAMT consultancy for a thorough consultation on the employment laws in the UAE. We are happy to answer all your questions about resident visas, labor laws, and probation period rules in UAE.

    The industry-leading cloud-based HR and payroll management tool includes a built-in feature that allows you to specify the notice period and settle the notice period amount as part of the final settlement. If you are interested in automating HR and payroll processes, HLB HAMT can offer you the best services to meet your industry-specific needs.

    Payroll tracking takes a lot of effort and time. Trust HLB HAMT, one of the top payroll outsourcing companies in the UAE, to expedite and accurately complete your payroll. We have a distinguished history of outsourcing the best payroll method from the UAE to other nations.

     

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