Probation to permanent: the UAE process
Reviewed by Mellow Editorial Team, HR & payroll content team
A UAE probation period ends when you either confirm the employee in their role or terminate — and the law sets precise notice obligations for each path. Here is what every employer needs to do at each stage.
What the law says about probation
Under Federal Decree-Law No. 33/2021, a probation period may not exceed six months. You cannot put the same employee on a second probation period with your company. During probation, either party may end the contract, but the notice requirements differ depending on who initiates and why.
If you, as the employer, want to terminate during probation, you must give at least 14 days' written notice. If the employee wants to leave for another UAE employer, they must give 14 days' notice; if they are leaving the UAE entirely, one month's notice applies. These are not defaults you can contract away — they are statutory minimums.
Confirming the employee: what to do on day one after probation
Confirmation does not require a new contract. The original contract simply continues. That said, there are practical steps worth taking:
Issue written confirmation. Send a brief letter or internal memo stating that the employee has successfully completed probation and their employment is now permanent. Include the effective date. This creates a clear record and removes any ambiguity.
Update your HR system. Change the employee's status from "probationary" to "permanent". This matters for leave accrual, gratuity calculations, and WPS records.
Review the salary and any benefits. Many employers promise a salary review at confirmation. If you made that commitment, honour it now and process any change through your payroll cycle in time for the next WPS submission.
Brief the line manager. Probation is also a performance management tool. At confirmation, the manager should have a short conversation setting expectations, objectives, and the next formal review date.
Gratuity: how the clock starts
End-of-service gratuity accrues from the first day of employment, not from the end of probation. If you confirm the employee, their gratuity entitlement covers the entire period including the probationary months. The statutory rate under Federal Decree-Law No. 33/2021 is 21 days' basic wage per completed year for the first five years, and 30 days' per year after that, capped at two years' total pay.
This means a one-year probationary period (which the law does not permit, but the principle holds for shorter ones) counts. Do not exclude the probation months from gratuity calculations — it is a common and costly mistake.
For UAE and GCC nationals, GPSSA pension contributions run from day one as well. Probation does not create a separate contribution window.
Annual leave
Employees become entitled to 30 calendar days of annual leave per year after completing one year of service. That one year includes the probation period. An employee confirmed at month six is six months into their leave accrual clock, not starting from zero.
During probation itself, an employee may take leave only with your approval. Many employers allow it in exceptional circumstances but are not obliged to. What you cannot do is use leave taken during probation as a reason to extend the probation period beyond six months.
Terminating at the end of probation
If you decide not to confirm, the same 14-day notice requirement applies as it does during probation. Do not wait until the final day to tell the employee — give notice before the probation period expires, not on the last day.
Where the termination is for performance reasons, document it. Keep notes from any check-in meetings, any written feedback you gave during probation, and your written notice letter. If the employee later raises an arbitrary dismissal claim, contemporaneous records are your main defence.
Gratuity is only payable on termination after one year of continuous service. An employee terminated at or before the one-year mark — including at the end of a six-month probation — is generally not entitled to gratuity. Check the specific dates carefully.
Common administrative errors to avoid
- Backdating or extending probation past six months in the contract. Any clause that purports to do this is void.
- Failing to process the salary change in WPS if a pay rise was agreed at confirmation. Late or incorrect WPS entries attract Ministry of Human Resources and Emiratisation (MOHRE) penalties.
- Using a fixed-term contract solely to avoid the probation rules. MOHRE auditors are familiar with this approach.
- Forgetting to update the employee's details with your PRO or immigration partner if their visa status or job title changes at confirmation.
The transition from probation to permanent is administratively straightforward but legally specific. Get the notices right, update your records promptly, and document every decision.
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