The UAE has successfully established itself as a global hub for career opportunities and economic growth, attracting professionals from across the world. This makes it a global talent pool of the best of the best, with industries ranging from finance and technology to hospitality and healthcare. Yet, the job opportunities here are high if you have the right skill set and knowledge.
As much as the job prospects look promising (in fact, they are), navigating the employment landscape, regardless of the country, comes with its unique challenges, particularly around employment agreements. One such element is the probation period, an aspect that often raises questions.
If you are starting a new job in the UAE or considering relocating, understanding how probation works can save you from surprises. This blog explores the purpose of probation, what the UAE laws say about it, and how you can prepare yourself during this crucial phase.
Why Do We Need a Probation Period?
The basic idea behind having a probation period is to assess the employee’s performance in the first few weeks before offering them a permanent position. It is a crucial time for both employees and employers.
From the employer’s perspective, this period allows them to see if the employee can deliver and meet the organization’s expectations. It sets clear benchmarks for performance and allows for monitoring the progress without significant consequences if adjustments are needed. For the employee, it’s time to see if they align with the work culture of the organization and the type of work it has.
Thus, the probation period is mutually beneficial for both employers and employees.
What the Law Has To Say?
The Ministry of Labor in the UAE regulates the Law regarding employment and its practices. Particularly, the Federal Decree-Law No. 33 of 2021 outlines clear rules about probation. Here’s what you should know:
1. Maximum Duration
Article 9 (1) Federal Decree-Law No. (33) of 2021 states that:
“The employer may appoint the worker under a probationary period not exceeding (6) six months from the date of commencement of work.”
According to this clause, if the probation period exceeds six months, it will be considered unlawful. In such a case, the employer will be held accountable or may need to compensate the employee.
Does this mean that all companies have 6 months of probation? No. The duration of probation may be mutually discussed and determined, for instance, 3 months. However, the total should not exceed 6 months. Furthermore, if the relationship continues after the period and the contract is renewed, the employer cannot subjugate the employee to another probation period.
2. Contract Termination
The probation period is a trial period for both parties. During this period, either party can terminate the contract with prior notice. However, specific conditions apply:
The employer can terminate the limited agreement with a 14-day prior notice in writing before the date specified for termination. Furthermore, as per Article 9 (5), if either party terminates without following the provisions mentioned in this article, the said party will have to compensate the other party an amount (unless specified otherwise) that is:
- Equal to the worker’s wage of the notice period, OR
- The remaining period of the notice period.
As for the duration of the notice period, here is what the rule says:
- If the employer wants to terminate the limited engagement contract, the employer has to give a 14-day advance notice in writing.
- If the employee wants to terminate the engagement contract, they have to give a:
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- Month’s notice in writing if the employee wants to join another company in the UAE
- 14-day notice in writing if the employee wants to leave the UAE
In case you decide to come back to the UAE within 3 months and join a new company, your new employer may be required to pay the compensation as outlined in the Law unless specified otherwise.
3. Penalty for Not Serving the Notice Period
If you decide to leave the UAE without complying with the notice period, you will not be granted a work permit to the UAE for a year from the date of your departure. However, there are certain exceptions:
- Workers on family-sponsored visa residency.
- Those who apply for a new work permit at the same establishment.
- Work with state-required professional skills and qualifications.
- Those with golden visas.
4. Compensations & Benefits
The compensation and benefits awarded to an employee during the probation period are the same as the basic benefits awarded to permanent employees. This includes salary, overtime pay, and other allowances specified in the contract.
5. End of Probation
Once probation ends, the employment contract automatically becomes permanent unless otherwise terminated by either party. Employees who complete their probation enjoy additional protections under UAE labor law, including severance pay and termination benefits.
How to Navigate Your Probation Period?
Navigating probation can be easier if you have clarity on all fronts. The following are some things to keep in mind:
For Employers
- Set clear role descriptions and goals. Define performance metrics and communicate them to the new hires.
- Make sure the onboarding process is very well outlined and detailed. It should include all important aspects such as day-to-day expectations, reporting duties, training for any software if required, and more.
- Monitor and review progress regularly. It is best to assign a peer mentor at the start to help the new hire get accustomed to your workplace quickly.
For Employees
- Read the contract thoroughly and be clear about your probation duration, allowances, and benefits. Also, ask for clarity on dos and don’ts during this period if they are not explicitly mentioned.
- Discuss your key performance indicators and expectations at the start to avoid confusion.
- Be open to learning new systems and workflows. Also, make sure you meet deadlines and deliver what you promised.
- Maintain open communication with your manager and seek feedback to address challenges early on.
Conclusion
The probation period is a time to test your energies and make sure that both parties are in sync and at par. This period can vary from organization to organization, based on mutual discussions. However, it cannot exceed 6 months under any circumstances as laid out by the Law. To avoid any consequences, as an employer or an employee, make sure you thoroughly understand the terms of your probation period as well as the laws around it.
If you need assistance in your HR operations or help with navigating the employee agreements, you can rely on HRSG. Our team of 60,000+ associates across 500+ locations can help you rewire your organization’s workforce administration and compliance practices to meet global benchmarks, ensuring that your most important asset, your employees, are happy with you.
