Did you know that under the Federal Decree‑Law No. 33 of 2021 (the UAE Labour Law) an employer may terminate a probationary employee by giving just 14 days’ written notice? As of 2025 this applies even during the probation phase. In this article, Abdul Halday brings you a practical guide to the rules on termination of employment in UAE and resignation during probation UAE, explaining why this matters, how companies should respond, and what employees must know.
You’ll gain clarity on: the legal framework, key deadlines, employer and employee rights, pitfalls during probation, and how to optimise your processes. With two decades of compliance & risk-management experience from Auxilium, this article is designed for GCC HR, employers, and compliance professionals.
Whether you are an employer or an employee, understanding the rules around termination and resignation during probation in the UAE ensures legal compliance, reduces risk of costly disputes, and smoothes transitions.
The Legal Framework: Termination of Employment in UAE
Applicable Law
The core statute is the Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations in the Private Sector. This replaced previous laws and came into force on 2 February 2022, but its main provisions apply throughout the UAE (including Dubai, Abu Dhabi, other emirates) in the private sector.
Grounds for Contract Termination
Under Article 42 of the Labour Law, an employment contract may be terminated for:
- expiry of the contract without renewal.
- mutual agreement in writing.
- one-party termination with due notice (for unlimited contracts) or under the terms stipulated (for limited contracts).
- other specific reasons such as employer’s bankruptcy, employee’s permanent inability to work, employer’s death (in certain forms), etc.
It is critical to note that even during termination “without cause” (for example employer simply wants to end the contract) the legal notice requirements and processes must be followed.
Unlawful / Arbitrary Dismissal
If an employer terminates an employee on grounds such as the employee filing a complaint with the Ministry of Human Resources and Emiratisation (MoHRE) or for other protected reasons, the dismissal may be deemed arbitrary under Article 47. In such cases the employee may claim compensation (capped at three months’ salary) plus other entitlements.
Probation Period: Special Rules for Early Employment
Maximum Duration
Employers may place a newly hired employee on probation for a period not exceeding six (6) months. If the employee remains beyond six months, the probation period is deemed to have ended and the employee becomes a regular employee (for purposes of service, leave, gratuity calculations).
Termination or Resignation During Probation
During the probation period, the rules differ from those for regular employment:
- Employers may terminate during probation by giving 14 days’ written notice.
- If the employee resigns during probation, a 14-day notice is generally required if leaving the UAE, but a one-month (30 day) notice may apply if moving to another UAE employer.
- The employee and employer have simplified termination rights, for example employer does not necessarily need to justify termination in probation.
Key Employee Rights During Probation
Although probation is a “trial” phase, employees retain certain legal protections:
- The contract time during probation does count towards total service for leave and gratuity once probation ends.
- Employees are entitled to sick leave even during probation, but this is typically unpaid.
- They may request annual leave during probation but employer may decline.
Risks for Employers & Employees in Probation
For employers: not serving the required 14-day notice before ending probationary employment may lead to dispute or obligation for payment equivalent to that notice period.
For employees: resigning during probation without honouring the notice (or without the employer’s agreement) can trigger a possible labour-ban or cost reimbursement if the employee transfers to a new employer within 3 months.
Notice Periods for Termination or Resignation (After Probation)
Standard Notice Period
Under Article 43 of the Labour Law, for a non-probation employee (on an unlimited contract) the one party must give written notice of termination. The minimum is 30 days (i.e., 1 month) and maximum 90 days (3 months) unless the contract states otherwise.
During this notice period:
- The employee continues to work normally and receives full pay.
- If the employer terminates, the employee is permitted one unpaid day per week to search for a new job.
- If a party fails to serve the notice period, they must pay compensation equal to the wage for the notice period (or remaining portion).
Notice Period During Probation
As noted, during probation: 14 days for employer termination or employee resignation (if leaving UAE). If an employee resigns to join another UAE employer, 30 days may apply.
Contractual Variations
The contract may specify a longer notice period (up to 90 days) so long as it’s not less than 30 days for unlimited contracts. The parties may agree in writing to shorten the notice period, but they cannot unilaterally impose a shorter period than legal minimum without agreement.
What Happens If Notice Is Not Served
If notice is not provided or the party leaves early:
- The party breaching must pay compensation equal to the wage for the notice period or the remaining part thereof.
- In case of resigning during probation without fulfilling required notice (and no employer breach), the employee may face a ban on new permit for one year.
Resignation During Probation vs Termination by Employer – Key Differences
| Scenario | Key Points | Practical Tip |
| Employer terminates during probation | Max 6 months probation, 14-day written notice. No need to justify cause (though fairness still matters). Employee still paid for days worked and for notice period if served or paid in lieu. | Ensure HR has the written notice, final settlement and visa/permit cancellation handled timely. |
| Employee resigns during probation | Employee gives 14 days’ notice if leaving UAE; 30 days if switching UAE employer. Employer may recover recruitment/contracting costs if employee leaves within 3 months to another UAE job (unless contract says otherwise). | Employees should review any cost-recovery clause in their employment contract before resigning. |
| Termination after probation (regular employment) | Article 43 applies: notice 30-90 days (or as contract indicates). Must pay full salary during notice. Employee entitled to gratuity if 1 year service. | Employers should ensure contracts set a clear notice period; employees should check their contract before resigning. |
Employer & Employee Compliance Checklist
For Employers
- Ensure employment contracts clearly define probation period (max 6 months) and notice period (for post-probation).
- For probation terminations: provide written 14-day notice, prepare settlement, cancel visa/permit.
- For post-probation terminations: ensure notice period (as per contract/Article 43) is honoured or pay in lieu.
- Document any cause for immediate dismissal (Article 44) where severe misconduct applies.
- Process final settlement properly: salary for days worked, accrued leave, gratuity (if applicable).
- Ensure visa/work-permit processes are aligned with termination.
For Employees
- Check your contract: what probation period, what notice period?
- If you are still in probation and wish to resign: understand 14-day (or 30-day) notice requirement.
- If you are resigning after probation: serve the notice period or negotiate a shorter one in writing.
- Keep record of payments, settlement, notice.
- If you believe you were unfairly dismissed (post-probation) or contract breached: you may have rights under Articles 45/47.
Case Studies & Real-World Considerations
Case Study 1: Termination During Probation
An employer in Dubai hired a new employee with a 3-month probation. After 2 months the employer decided to end the employment. The employer gave the employee a 14-day written notice and paid the full salary for those 14 days, plus salary for days worked to date. The employer cancelled the visa and processed final settlement. This was compliant under Article 9(1) of the Labour Law.
Case Study 2: Resignation by Employee During Probation
An employee resigned after 4 months (still within probation) to join a different UAE employer. The contract specified that if the employee resigned within the first 6 months, the new employer would reimburse the original for visa and recruitment costs. The employee served a 30-day notice, and the new employer reimbursed the costs to the original employer. This aligns with the legal warning in recent articles.
Case Study 3: Notice Period Dispute After Probation
An employee on an unlimited contract wished to resign and claimed only one week’s notice based on employer agreement; however the contract stated a 3-month notice. Under Article 43, notice must be at least 30 days and up to 90 days unless otherwise agreed. The employer insisted on full 3-month notice or compensation. This reflects the guidance in recent analysis.
Practical Compliance Tips
- Always issue notice in writing (email is acceptable if documented) and have employee/ employer acknowledge.
- Maintain records of salary payments, notice period served, final settlement.
- Upon termination/resignation, process visa/work permit cancellation or transfer within required timeline to avoid liabilities.
- Do not assume “no notice” during probation unless employer-employee agreement; legal minimum still applies.
- Provide the departing employee one unpaid day per week during notice if employer terminates post-probation (to search for a new job) as required under Article 43.
Understanding the rules for termination of employment
Understanding the rules for termination of employment in the UAE and resignation during probation is essential for any employer operating in the GCC region and any employee working in the UAE. The key rules in 2025 are: probation cannot exceed 6 months; termination during probation requires 14 days’ notice; post-probation termination or resignation requires 30-90 days’ notice; and both parties must follow written contract and statutory minimums.
At Auxilium, with more than two decades’ experience in compliance, risk management and employer-of-record services in the GCC, we help organisations manage employee onboarding, probation policy, contract drafting, termination processes and ensure full UAE Labour Law alignment. Contact us for a free consultation to audit your termination & resignation policies, assess your contracts, and ensure your HR practices are fully compliant.
Ready for next steps? Reach out to us to review your termination and probation procedures and minimise legal risk in your UAE operations.
