Probation periods in the United Arab Emirates: best practice
Reviewed by Mellow Editorial Team, HR & payroll content team
Probation in the UAE can last up to six months, during which either party may end the contract with reduced notice — but the rules on how and when you can do this matter more than most employers realise.
What the law says
Federal Decree-Law No. 33/2021 (the UAE Labour Law) sets the maximum probation period at six months. You cannot extend it beyond that, and you cannot place an employee on probation more than once with the same employer.
During probation, either party can terminate the contract. The notice obligations differ depending on who is terminating and why:
- Employer terminates: 14 days' written notice is required.
- Employee resigns to take a job elsewhere in the UAE: 14 days' written notice is required.
- Employee resigns to leave the UAE entirely: No minimum notice period is specified under the standard probation provisions, but the contract may still stipulate one — check your template.
If an employee resigns during probation to join another UAE employer and does not serve the 14-day notice, the new employer can face a bar on obtaining a work permit for that employee for a period. This is a practical risk worth flagging to any new hire who might be tempted to walk out without notice.
Gratuity and leave during probation
End-of-service gratuity accrues from the first day of employment, not from the end of probation. However, if the employee does not complete one year of continuous service, no gratuity is payable under Federal Decree-Law No. 33/2021. So in practice, someone who leaves or is let go during a six-month probation period receives no gratuity.
Annual leave entitlement under UAE law is 30 calendar days after one year of service. During probation, an employee has not yet qualified for that entitlement. You may grant leave during probation at your discretion, but you are not obliged to. If you do grant leave and the employee is then dismissed before completing a year, any leave taken may be deducted from final settlement — confirm this is reflected clearly in your contract.
Structuring probation well
A probation period is only as useful as the framework around it. A few things that make a meaningful difference in practice:
Put the duration in writing from day one. The offer letter and employment contract should both state the probation length, the notice period that applies during it, and the criteria you will use to assess the employee. Vague probation clauses create disputes.
Set milestones, not just an end date. A six-month window with no check-ins does not give you useful information. Build in a structured review at the halfway point — this gives you time to course-correct, give the employee a fair chance to improve, and document your assessment if you later need it.
Document performance issues as they arise. If you are considering not confirming an employee at the end of probation, you want a paper trail showing that concerns were raised and the employee had the opportunity to respond. A dismissal at month five with no prior documentation looks arbitrary and creates unnecessary risk.
Do not use probation as a rolling short-term contract. The law is explicit: one probation period, maximum six months, per employment relationship. Some employers have tried to re-probate returning employees or impose probation on internal transfers to a new role. This is not permitted.
Confirming or ending employment at the end of probation
If you decide to confirm the employee, issue written confirmation. It tidies up the record and resets expectations clearly — both parties now know the full notice period and standard terms apply.
If you decide not to confirm, serve the 14-day notice in writing before the probation period expires. Do not let the probation period lapse without a decision: if the employee continues working past the end of probation without any communication, the employment is generally treated as confirmed.
Where the decision is borderline, consider whether a structured performance improvement plan under the confirmed employment framework might be more appropriate than a late-stage probation dismissal. Ending employment is always cleaner when the process has been consistent and documented.
Practical points on WPS and final settlement
Even a short probation-period termination requires you to process the final settlement correctly through the Wage Protection System. Wages up to the last working day must be paid, any accrued but untaken leave (if your contract allows for it during probation) should be settled, and the relevant paperwork for visa cancellation must be initiated. The Ministry of Human Resources and Emiratisation (MOHRE) sets timelines for final settlement payment — generally within 14 days of the termination date — and late payment can result in penalties.
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This article is general information, not legal advice. For guidance on your specific circumstances, consult a qualified UAE employment lawyer or contact MOHRE.
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