The probation period is a fixed duration at the beginning of employment when the employee is being evaluated before becoming permanent. The probation period in the United Arab Emirates (UAE) is protected by UAE Labour Law Federal Decree No. 33. During this period, both employers and employees can determine whether or not they are a good fit. Employers in the UAE have the opportunity to assess performance and suitability, while workers have the opportunity to evaluate the company, the job, and the work atmosphere in which they will be working long-term.

Business owners expanding into the UAE’s excellent market may feel overwhelmed by probation period regulations. Understanding the rules in detail is very important for employers to avoid penalties and fines.

Definition of a Probation Period in the United Arab Emirates

In the UAE, probation is a trial period for employees that can last up to six months from the start of their employment. During this time, the employer can assess the new employees’ skills, work ethic, and compatibility with the company’s culture.

Although this period is regulated by the UAE Labour Law, it is not as strict as the regular employment relationship. Both the employer and the employee have the opportunity to evaluate the working relationship without the full obligations and protections that apply to regular employment contracts.

The probation period must be clearly stated in the employment contract, including its duration and specific terms. UAE labor law requires transparency in all employment arrangements, ensuring both the employer and the employee understand their rights and responsibilities during this trial period.

Lengths of Probationary Periods in the United Arab Emirates

Probation in the UAE can last up to six months and cannot exceed this limit under the law. The employer will determine the length of the probation period depending on the nature of the job, its complexity, and the policy of the company. For example, some employers may set three months as a probation period for an entry-level job or a routine administrative position. On the other hand, positions that require senior management responsibilities or specialized technical skills may require the full six months.

The employer cannot extend the probation period for more than the agreed term, unless there is a mutual agreement, which should be in writing and added to the employment contract.

Permanent or Indefinite Contracts

As of 1 January 2023, there are no longer any permanent contracts in the UAE. The UAE law currently requires that all new employment contracts be fixed-term. These fixed-term contracts can last for a maximum of three years and are renewable.

Fixed-Term or Definite Contracts

In fixed-term contracts with specific start and end dates, the length of probation is often proportionate to the total contract duration. For example:

Contract Duration Probation Period
One-year contract 3 months
Two-year contract 6 months

This gives sufficient time to assess suitability while still allowing a reasonable period of the contract to remain afterwards.

If things are not working out during the probationary period, either the employee or the employer can end the contract more easily than after the employment becomes regular. Once the probationary period has been completed, the employees are considered regular. This means they are more protected by law for the remaining contract term.

Legal Considerations for Probation Periods in the United Arab Emirates

The employers must respect UAE labor law as well as the International Labor Standards regarding any international labor conventions ratified by the UAE. This will maintain a balance between the interests of the employer as well as the employee throughout the period. Employers must state the probation period clearly in the contract and highlight its duration, evaluation methods, and other conditions regarding termination of the contract.

The probation period must not be more than 6 months, and the length must also be reasonable in proportion to the overall length of the contract. Either the employee or the employer can terminate a probationary employment contract. However, it can’t be discriminatory based on nationality, gender, or age.

Pay and Working Conditions

Probationary employees are entitled to receive the salary and benefits stated in their employment contract from the beginning of their employment. Employers cannot use probation as a condition to reduce wages or benefits. Probationary employees are entitled to receive all elements of pay, including basic salary, allowances, and other benefits, as outlined in their contract throughout the probationary period.

Probationary employees are entitled to the same working conditions as confirmed employees, including working hours, overtime payment, health and safety measures, and access to necessary equipment and resources.

The new labor law also introduced an end-of-service gratuity, where partial years will be paid pro rata. However, to be eligible for gratuity payment, employees must complete at least one year of service. Therefore, probationary employees who leave or are terminated before the end of their probation period are typically not eligible for gratuity unless it is stated otherwise in their contract.

Termination and Notice

Terminating an employment contract during the probation period is more flexible than after the employment relationship becomes regular. However, in both cases, all the legal rules related to termination should be observed.

The employer can terminate the probationary contract at any time with at least 14 days’ prior written notice. The employee also has the right to resign with prior notice. They should give at least 14 days’ written notice if they are leaving the UAE, or one month’s prior written notice if they are joining another company in the UAE.

As in any other case of termination, the written notice should state that the employment contract is terminated. The termination of the contract cannot be based on discriminatory or any other unlawful grounds.

Vacation / Holidays

Employees on probation in the UAE will not be entitled to any paid annual leave because such a benefit is usually granted after an employee completes 6 months of service. However, they are entitled to all public holidays with pay and, if they are asked to work on a public holiday, they will be entitled to compensatory leave or overtime payment according to the law.

Sick leave will only be paid after the end of the probation period. However, the employer may grant sick leave before the end of the probation period, usually unpaid. Employers can approve unpaid leave in case of any emergency during probation, at their discretion, and this should be agreed in writing so that there are no future misunderstandings.

Benefits of Probation Periods in the United Arab Emirates

The probation period in the UAE is important as it benefits both the employer and the employee. They get enough time to make an informed decision about their long-term commitment.

  • For Employees

The ability to assess the company’s culture and the job itself before making a long-term commitment.

Flexibility to resign with shorter notice periods if the job is not what they expected.

They get training, coaching, and feedback from the employer that helps them improve their skills.

The opportunity to prove their skills, so they can negotiate higher salaries in the future.

  • For Employers

See how the new employee performs in the actual job before committing to a long-term employment relationship.

Flexibility to terminate the contract without a long notice or additional compensation obligations.

Opportunity to provide onboarding and specialized training for smoother integration

Conclusion

In the United Arab Emirates, when the probation period complies with labor laws, it can be mutually beneficial for both the employer and employee. Clear regulations on the duration, termination, pay, and rights of probationers are important for a transparent and smooth employment relationship.

The six-month maximum period allows for a comprehensive assessment of a new hire before making the employment regular. As the UAE continues to update its labor laws and regulations to attract global talent and support economic growth, employers must stay informed about these updates.

Foreign business owners who are expanding into the UAE usually don’t want to deal with the complexity of the regulations. This is why partnering with us at Remote People might be their smart solution. We take care of the compliance, while they only take care of their business growth.

Frequently Asked Questions

Employees are not entitled to paid sick leave during probation. However, in genuine medical emergencies, employees should discuss situations with employers who may grant unpaid leave.

End-of-service gratuity is earned after 1 year of service. Probationary employees, who don’t complete 1 year, are not eligible for end-of-service gratuity according to UAE labour law.

Yes, probationary employees must receive full salary and benefits specified in employment contracts from day one. Employers cannot reduce wages or withhold benefits during probation periods.