What Happens If An Employee Resigns During Probation In The UAE?

The probationary period plays a crucial role in the employee-employer relationship. However, the MoHRE statistics state that over 30% of employment disputes in the UAE arise from probation period misunderstandings. Therefore, clearly understanding the rights and obligations of both the parties is important in reducing potential ambiguities and disputes, such as in scenarios where an employee decides to resign during their probationary period.

Probationary Period Under the UAE Law

The UAE Labour Law, the Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, ensures transparency and fairness for both parties during the probation period.

It defines a probationary period as a phase during which an employer evaluates the performance of an employee, after which the employment contract is either continued or terminated. The probationary period also enables the employee to become familiar with his job duties and the work environment.

What is the maximum duration of a probationary period? – As envisaged in the Article 9 of the UAE Labour Law, an employee may be appointed under a probationary period for a maximum of six months from the date of commencement of his work.

The law also mandates that an employer shall not appoint an employee under a probationary period more than once during their employment period.

End of the probationary period:

As the probationary period is a period of evaluation, if the employee successfully passes this period and decides to continue to work, then the probationary period shall come to an end, and the employment contract shall become valid. Moreover, this period of probation shall be counted within the employee’s term of service.

The employer may terminate the service of the employee during the probationary period by notifying such employee about the termination 14 days prior to the date specified for the termination.

What happens if an employee resigns during probation?

An employee may decide to resign from his job during the probationary period for reasons like a better job opportunity, an unsuitable work environment, or other personal reasons.

Under the UAE Labour Law, an employee can rightfully resign during the probation period. They shall receive the wages till the last working day. However, such an employee shall not be eligible to receive any end-of-service benefits such as gratuity.

The employer shall be entitled to the following rights:

Employer’s right to be notified:

• If an employee wishes to resign from his employment during the probationary period to join another job, such employee shall duly notify the original employer of the same in writing, one month prior to the date he wishes to terminate the contract.
• Where a foreign worker wishes to terminate his employment during the probationary period to leave the country, such an employee shall also notify the employer of the same in writing, at least 14 days prior to the date he wishes to terminate the contract.

Employer’s right to be compensated:

• Where an employee intends to terminate the contract to join another employment, the UAE Labour Law also provides a provision for the original employer to be compensated by the new employer for the costs incurred for recruitment or contracting with the worker, unless otherwise agreed upon.
• In cases where such a foreign worker intends to return back within 3 months from the date of departure, and obtain a new work permit under a new employer, such new employer shall also pay to the original employer, the compensation for the costs of recruitment or contracting unless otherwise agreed upon.
• If a foreign worker leaves the UAE without following the aforesaid law, they cannot obtain a new work permit for one year from the date of departure.

It is to be noted that, as under Article 9(5) of the UAE Labour Law, if either parties, the employer or the employee, terminate the employment contract during the probation period, without proper notice or without following the UAE laws, they shall compensate to the other party:

• An amount equal to the worker’s full wages agreed for the notice period in case of no notice being provided, and
• An amount equal to the wages for the remaining period in case a partial notice was provided.

Therefore, understanding these rules in the UAE ensures a smoother employment relationship. Employment contracts shall have clarity in matters like probation to avoid legal disputes. Here, seeking legal expert advice ensures that you make informed decisions and effectively comply with the UAE labour laws.