In the UAE, probation can run for up to six months, but it isn’t a free-for-all. Employers must give 14 days’ written notice to end employment; employees give 14 days if they’re leaving the country or 30 days if they’re joining another UAE employer (often with the new employer covering agreed recruitment costs). Annual leave typically starts accruing after six months, and sick leave during probation is unpaid.
Most disputes in the first half-year come from vague offer letters and missed notice windows. This guide takes you from offer to confirmation, covering notices, leave, visas and final settlements, plus key differences in DIFC and ADGM. Everything is grounded in current UAE labour law and free-zone rules. Use the checklists to stay compliant, or hand the admin to Auxilium’s UAE Employer of Record team so you can focus on growth.
What “probation” means in the UAE (and why it matters)
Probation is a formal assessment period that cannot exceed six months from the start date. If the employee passes and continues, the contract simply continues and the probation period counts toward service. You cannot place the same employee on probation twice with the same employer.
SMEs stumble here because the rules look short on paper, but it’s the notice mechanics and leave timing that cause most missteps, especially when relocations, visa timing, and fast-growth hiring collide.
The offer letter: get these clauses right on day one
Your offer letter is the legal anchor for probation in the UAE. Get the essentials in writing, probation length, who gives how much notice (and when costs are recovered), how annual and sick leave work during probation, and any free-zone variations, so payroll, visas, and expectations stay aligned from day one.
Include the following blocks in every mainland UAE offer:
- Probation duration: Up to 6 months, with a clear start date.
- Notice during probation (employer): Employer may terminate with 14 days’ written notice.
- Notice during probation (employee):
14 days if resigning to leave the UAE;- 30 days if moving to another UAE employer.
- Add a line that the new employer reimburses recruitment/contract costs to the current employer (or expressly waive/adjust it).
- Annual leave during probation: Clarify that statutory accrual starts after six months at 2 days/month up to one year; employer may allow advance/early use by agreement.
- Sick leave during probation: Unpaid; unpaid sick leave may be granted on a medical report.
- Final settlements: Dues and EOS, if any, paid within 14 days of contract end.
Free-zone employers
- DIFC: You can agree up to six months’ probation; statutory minimum notice periods don’t apply during an agreed probation, so your contract sets the notice. Add an explicit notice clause.
- ADGM: Statutory rule requires one week’s written notice by either party during probation. Your contract can’t reduce this minimum.
During probation: rights, obligations, and typical scenarios
Probation isn’t a free pass, it’s a regulated phase with clear duties on both sides. Day-to-day calls, performance exits, resignations, leave requests, payroll and visa changes, still trigger specific notice periods (14/30/14), potential cost recovery, and tight payment timelines. Use the scenarios below to apply the rules quickly and document each step so you stay compliant across mainland and free zones.
1) Employer-initiated termination
- Mainland rule: Give 14 days’ written notice. If you don’t, you owe compensation equal to wages for the missed period.
- Practicalities: Plan the WPS final pay run to meet the 14-day settlement requirement after the end date.
2) Employee resignation during probation (your two playbooks)
- Exiting the UAE: Employee gives 14 days’ notice. If they later return within 3 months and take another job, the new employer must reimburse your recruitment/contracting costs unless you had an agreement that says otherwise.
- Transferring inside the UAE: Employee gives 30 days’ notice. The new employer reimburses your recruitment/contracting costs (unless waived/varied in writing).
Tip: Add a simple “cost-recovery schedule” to your offer letter (visa fees, onboarding, flights, relocation allowance). It streamlines reimbursement between employers and reduces friction at resignation.
3) Leave entitlements during probation
- Annual leave: No statutory entitlement until after six months of service (then 2 days/month until one year). Employers may allow use of annual-leave balance during probation, make it explicit if you do.
- Sick leave: Unpaid during probation (unpaid sick leave may be granted on a medical report). Paid sick leave entitlements start after probation.
4) Payroll & settlements
- Clock starts at termination: All dues must be paid within 14 days of the contract end date, plan cutoff dates accordingly.
After probation: confirmation, benefits, and documentation
Passing probation isn’t automatic, close the loop with a clear confirmation. Issue a short letter that records continuous service, sets post-probation notice periods, and confirms leave balances, paid sick-leave eligibility, and benefits. Update HRIS, payroll/WPS, and visa records the same day, and file the documents so future exits, transfers, or EOS calculations are clean and uncontested.
Confirmation letter. Once the employee passes probation, issue a short confirmation that:
- Confirms continuous service (probation counted).
- Aligns notice periods going forward (e.g., 30/60/90 days per policy).
- Confirms annual-leave balance and future accrual.
- Notes eligibility for paid sick leave and EOS benefits (once service reaches one year).
Why it matters. Clean confirmations reduce disputes, inform visa planning, and sync your HRIS + payroll + WPS timelines with the law’s 14-day final settlement rule in case of later exits.
Mainland vs Free Zones: what changes (and what doesn’t)
Compliance checklist for SMEs
Turn probation compliance into a repeatable SOP. Use this checklist to hard-wire the 14/30/14 notice rules, leave and sick-leave timing, free-zone variations, and the 14-day final-settlement clock into your offers, HRIS, payroll/WPS, and visa workflows. Copy, paste, and run it for every new hire so nothing slips through.
Before start date (offer & contract)
- Probation start/end dates (≤ 6 months).
- Notice clauses that match the 14/30/14 framework (employer, employee leaving UAE, employee moving in-UAE).
- Cost-recovery language (visa/recruitment/relocation) and whether you waive/limit it.
- Statement on annual leave (no statutory entitlement until after 6 months; whether you allow advance use).
- Statement on sick leave (unpaid during probation).
- Free-zone addendum if in DIFC/ADGM (contractual notice vs one week).
During probation
- Track notice windows for any change/exit.
- If granting annual leave early, record as advance against future accrual (after 6 months).
- Maintain medical reports for any unpaid sick leave granted.
At confirmation
- Issue confirmation letter; update HRIS; confirm leave balances and sick leave eligibility.
At exit (any time)
- Run final pay within 14 days of contract end.
Common pitfalls (and how to avoid them)
Even good teams trip over the same probation traps: missing the 30-day notice on in-UAE transfers, granting paid sick leave too early, assuming free zones mirror MOHRE, or paying final dues late. Each mistake is avoidable with tight templates, HRIS rules, and clear manager scripts. Use the quick fixes below to turn repeat errors into one-time lessons.
- Missing the 30-day notice when an employee transfers to another UAE employer during probation → add a templated resignation acknowledgement that restates the 30-day rule and cost-recovery.
- Granting paid sick leave during probation by mistake → lock a rule in payroll: paid sick = 0 until post-probation.
- Assuming free zones follow MOHRE: DIFC and ADGM differ—update your templates per zone.
- Late final settlements → WPS scheduling should reverse-calculate to hit the 14-day deadline.
Case studies – How an EOR reduces probation friction
Real-world examples show how an EOR removes most probation friction. As the legal employer, the EOR standardises contracts and notice wording, coordinates visas, automates payroll/WPS timing, and enforces cost-recovery rules, so exits, transfers, and confirmations run on rails. The cases below highlight faster onboarding, fewer disputes, and clean final settlements across UAE and the wider GCC.
- Data-centre builder scaling in KSA/UAE/Bahrain: EOR model used to bypass visa quota delays in UAE, ensuring on-time onboarding while staying fully compliant across three countries.
- Sustainable engineering firm in KSA: Ongoing growth risked falling below nationalisation (Saudisation) thresholds; compliance audit and onboarding plan maintained green status and uninterrupted visa issuance.
- Recruitment & contractor workforce across UAE/Qatar/Oman: EOR employed 80+ contractors, handling sponsorship, payroll, benefits, and local labour-law compliance via a single platform.
Why it matters for probation: When an EOR is the legal employer, contracts,notices, visa actions, and payroll are handled by local specialists, making the 14/30/14 rule, leave timing, and settlement deadlines routine rather than risky.
Probation isn’t just an HR formality, it’s a regulated phase with specific notice and settlement duties. Get your offer letters right, align leave and sick rules to the statute, and bake the 14-day settlement into payroll.
As a GCC-specialist Employer of Record, Auxilium acts as your legal employer in the UAE, handling contracts, WPS-compliant payroll, visa processing, and end-of-service obligations—so your team can focus on growth, not red tape. Let’s talk about deploying talent in the UAE (and across Saudi, Kuwait, Oman, Bahrain, Qatar) with speed and compliance.
