Labour QuestionsQuestion & AnswersCan an Employee Be Terminated During Probation in the UAE?

Can an Employee Be Terminated During Probation in the UAE?

The probation period is a legally recognized phase under UAE Labour Law that allows both the employer and the employee to evaluate the employment relationship before confirming it. During this period, termination rules differ from standard employment conditions.

Under Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship, employers and employees have specific rights and obligations when terminating a contract during probation.

What Is the Probation Period in the UAE?

The probation period in the UAE cannot exceed six months. It must be clearly stated in the employment contract and can only be applied once per employer.

  • Maximum duration: 6 months
  • Cannot be extended beyond this limit
  • Must be mentioned in the contract

Can the Employer Terminate the Employee During Probation?

Yes. The employer has the right to terminate the employee during the probation period, but must provide at least 14 days’ written notice before termination.

Failure to provide this notice may result in legal consequences, including compensation claims.

Can the Employee Resign During Probation?

Yes. The employee also has the right to resign during the probation period, but the notice requirements depend on the situation:

  • 30 days’ notice if the employee intends to join another company inside the UAE
  • 14 days’ notice if the employee intends to leave the UAE

These rules are designed to protect employers from sudden loss of employees while maintaining fairness for workers.

What Happens If Notice Is Not Given?

If either party fails to comply with the required notice period during probation, they may be required to compensate the other party. The compensation is typically equivalent to the salary for the notice period.

Can an Employee Be Re-Hired Under Probation Again?

No. An employee cannot be placed under probation more than once by the same employer. If the employee is re-hired, the probation period cannot be applied again.

Does the Employee Get End-of-Service Benefits During Probation?

Generally, employees who do not complete one year of service are not entitled to end-of-service gratuity. Therefore, most employees terminated during probation do not qualify for gratuity.

Is Termination During Probation Considered Arbitrary?

Termination during probation is usually not considered arbitrary if it follows the legal requirements. However, if the employer violates the notice rules or acts in bad faith, the employee may still challenge the termination.

Conclusion

Termination during probation is allowed under UAE Labour Law, but it must follow strict notice requirements. Employers must give 14 days’ notice, while employees must provide 14 or 30 days depending on their next step.

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