Dubai – If an employee quits during the probation period, is the employer entitled to be compensated? The UAE's Ministry of Human Resources and Emiratisation (MOHRE) took to its social media channels on February 15, to raise awareness on what the new UAE Labour Law says about the probation period.
In it's post, MOHRE stated: "According to Article 9 of Federal Decree-Law No. 33 of 2021 on Regulation of labour relations, the worker can terminate the contract or work for another employer during the probationary period after notifying the original employer in writing [for a period of] not less than one month. In case of non-compliance, the worker shall pay compensation equal to his wage for the notice [period] or remaining period. In addition, the new employer shall compensate the original employer for the costs of recruitment or contracting."
Federal Law No. 33 of 2021 came into effect from February 2, 2022. Here is a detailed look at what Article 9 of the law states about each parties rights and responsibilities during the probationary period.
Article (9) - Probation Period
1. An employer has the right to hire a worker under a probation period not exceeding six months from the date of appointment, and the employer may terminate the worker’s service during the probation period after giving him a 14-day notice in writing before the date specified for ending his service.
2. A worker shall not be appointed more than once under probation with one employer, and if the worker passes the probation period successfully and continues to work, the employment contract becomes valid according to the agreed terms, and that period must be calculated within the tenure of service.
3. An employee, who wants to switch jobs and work for another employer in the country during the probation period, must give a one-month written notice to the first employer, notifying him that he wants to end his contract and work for another employer. The new employer shall give the first employer the costs of recruitment or contracting with the worker, unless the contract states otherwise.
4. If the expatriate worker wants to terminate his contract during the probation period, to leave the country, he must notify his employer of this in writing, at least 14 days before the date specified for the termination of the contract. In the event that he wishes to return to the country and obtain a new work permit within three months from the date of departure, the new employer shall pay the compensation stipulated in Clause (3) of this Article, unless there is an agreement between the worker and the employer stating otherwise.
5. If either party terminates the work contract without honouring the provisions of this Article, he shall pay the second party a compensation equal to the worker's wages for the notice period or the remaining period of the notice period.
6. If the expatriate worker leaves the country without abiding by the provisions of this article, he will not be given a work permit to work in the country for one year from the date of leaving the country.
7. The Ministry may exempt certain job categories, skill levels, or workers from the condition of being not issued a work permit, stipulated in clauses 4 and 6 of this article, in accordance with the rules and procedures specified by the Executive Regulations (Bylaws) of this Law.