How Probation Rules Under UAE Law Affect Employee Hiring and Onboarding

In your UAE hiring journey, probation is the safety net you use to protect yourself. It allows you to give a new hire a trial period to check on their work proficiency, while at the same time, the employee gets the opportunity to evaluate their team fit.

Nevertheless, the probation period cannot be your license to do anything you want. The rules are very strict and if you fail to comply with them, your company could be subjected to fines, legal problems, and a degraded reputation according to the UAE Labor Law (Federal Decree-Law No. 33 of 2021).

For fast-growing companies, adhering to these rules in recruitment and onboarding may seem quite challenging. That is the reason why a number of businesses get in touch with recruitment outsourcing companies to allow them to take charge of the 'heavy lifting'.

The 6-Month Absolute Limit

According to UAE legislation, the probation period can only last for a maximum of 6 months, no matter what. You have the option to include a shorter duration such as 3 or 4 months in the employment contract. However, exceeding 6 months is not allowed even with the employee's consent to an extension.

At the end of 6 months, the worker becomes a permanent employee by default. Also, you are not allowed to give the same employee two probation periods for the same job or for a different role within your company.

Given that strict deadline, onboarding has to be quick and very well planned. If training takes your new hire 3 months to get started, then you only have another 3 months to determine whether the employee can perform the job well. Hiring an expert recruitment process outsourcing company may be a good idea if you want to set better hiring timelines and not waste this very important period of finding out the candidate's suitability.

The Right Way to Fire Someone

In the past, managers used to be able to fire an employee on probation without any delay or notice. This isn't the case anymore. Now, the legislation provides for both parties to be adequately protected by the requirement of fair notice periods.

If the Employer Terminates the Contract

In case you feel that the new employee is not the one you were looking for, you have to give them a minimum of 14 days' written notice before they can be asked to leave the company. It is not simply permissible to inform them to pack and depart by the end of the day.

If the Employee Resigns

The rules for employees leaving the job depend on their plans:

• Leaving the UAE: If the employee intends to leave the country, they must provide you with 14 days’ notice. Legal Advice Middle East
• Changing jobs within the UAE: In case they want to move to another company within the UAE, they should notify you 30 days in advance. Zola

Who Pays for the Recruitment Costs?

Hiring new employees is costly. Besides the government fees, visas, medical checks, and flight tickets, other expenses are involved in a recruitment process. That makes it a huge loss of money in case a person leaves during probation to go to a competitor.

Thankfully, the UAE legislation safeguards business owners here. For example, if a professional leaves his/her job during probation in order to work for another company in the UAE, it is the new employer who has to pay the old one the recruitment costs.

However, tracking and recovering these expenses requires proper documentation. Professional recruitment outsourcing firms keep record of these costs from the beginning so that you will not be losing money in case a newly hired employee decides to leave the company early.'

Regular Employee Rights Apply on the First Day

Many companies assume that employees on probation have no rights at all. This is a huge mistake. An employee on probation is, in fact, technically your employee from their very first day. 

• Wage Protection System (WPS): You shall be paying their full salary via the government's WPS portal on the due date. Asanify
• Medical Insurance: You should provide health insurance coverage starting from the first day of work. No, you can't wait to put them on the insurance only after their probation is over! Asanify
• Visa Costs: It is the employer's responsibility to cover the cost of the residency visa and labor card. Even legally, you cannot deduct this amount from the employee's wage or demand that they pay without being formally informed.

Fix Your Hiring Process

You need to know the rules first. After that, figure out a new way of greeting your new employees. Since you can only make a quick judgment about performance in 6 months, the employee’s first 6 months should be well managed.

• Start with Setting Goals: Let the new worker know very simple and transparent goals for the 1st, 2nd, and 3rd months. Do not ever let them guess.
• Document Performance Thoroughly: If a person is not performing well, make a note of it. Retain the records of feedback discussions. If you have to terminate them with 14 days' notice, you will need evidence that they did not fulfill the job requirements.
• Take Assistance: Handling visas, labor regulations, and talent acquisition is time-consuming. Having a recruitment process outsourcing (RPO) partner working solely on your behalf will not only protect the business but will also keep you compliant, while you focus on growth.

Need Help Hiring Safely in the UAE?

Finding the best talent is only one part of the puzzle. Managing labor law compliance in the UAE is extremely time consuming. Leave it to the professionals. One of the leading recruitment outsourcing companies in the region is TASC Outsourcing. We do everything from scouting talent to onboarding and visa compliance. Hire our recruitment process outsourcing firm that you can rely on your legal-free growth in your team. Contact TASC Outsourcing now to get started. 

Frequently Asked Questions

1. Can I extend an employee's probation to 9 months?

No. The UAE Labor Law states that the absolute maximum duration for a probation period is 6 months. Any contract clause stating otherwise is illegal.

2. Can an employee take paid sick leave during probation?

Legally, employees have no right to paid sick leave during probationary periods.

Nonetheless, employers may decide to allow the employees to take unpaid sick leave in the case of medical emergencies.

3. What happens if I fire someone on probation without 14 days' notice?

When you fail to give the mandatory 14-day written notice, then, you will be required to compensate the employee with the full wages for the 14 days notice period.

4. Can I make the employee pay for their visa if they quit?

Not at all. As per the law, employers must bear all the visa and recruitment-related expenses. You simply cannot recover those amounts by deducting their salaries nor by asking the employee directly for the refund.

5. What is a labor ban for leaving during probation?

If a worker exits the country while on probation and skips the 14 days' notice period, then a work prohibition of 1 year can be imposed on him/her in the UAE.