Tim Elliott
Welcome to Lawgical, the UAE’s first—and, as far as we know, still the only—legal podcast. My name’s Tim Elliott. Lawgical comes to you from the Dubai-based legal firm HPL Yamalova & Plewka. And, as ever, here’s the managing partner, Ludmila Yamalova. Good to see you.
Ludmila Yamalova
Good to see you too, Tim.
Tim Elliott
Now, this time, it’s a very special edition of Lawgical. We recently took a quick look at the new UAE employment law, but I want to dive into more detail because there’s a lot to discuss. I want to make this easier to digest and split it into six relatively easy pieces. Let’s move on to part three, Ludmila: probation and probationary periods.
Under the new law, employers are required to provide employees with 14 days’ notice for termination during probation. Is that correct?
Ludmila Yamalova
Yes. The idea of probation is quite interesting because while it existed under the previous law, it now means something very different.
Previously, probation allowed employers to terminate an employee during the probationary period without notice or compensation. It was a straightforward arrangement where termination required no explanation. Employees could also leave under the same terms—no notice, no reason, and no compensation.
Under the old law, probation was limited to six months, and employers couldn’t extend it. If an employee was hired on probation for three months, for example, the company couldn’t decide to extend that period further. This limitation still applies under the new law.
However, the new law introduces significant changes. Employers can still terminate an employee during probation, but they must now provide 14 days’ notice. This is a departure from the past when no notice was required. Employers can either allow the employee to work for those 14 days or compensate them for the notice period.
For employees, the changes depend on why they leave. If an employee leaves to join another employer in the UAE, they must give one month’s notice. The new employer is also required to compensate the previous employer for recruitment or contract costs.
Tim Elliott
That makes sense. It reflects a common scenario where employees use one offer as a stepping stone to another.
Ludmila Yamalova
Exactly. The law now accounts for this practice, which often leaves employers bearing the financial burden of recruitment, visa costs, and other expenses. These costs can run into thousands of dollars, so it’s understandable that the law now requires compensation from the new employer.
However, if an employee decides to leave the UAE entirely, they only need to provide 14 days’ notice and are not required to compensate the employer.
That said, if the same employee returns to the UAE within three months to work for a new employer, the new employer must still compensate the original employer for recruitment costs.
Tim Elliott
That seems like a fair balance.
Ludmila Yamalova
It is. The new provisions aim to balance the interests of both employers and employees. Employers get some protection for their investment, while employees aren’t left completely vulnerable.
If either party breaches these terms, the law allows for compensation equal to the notice period. For example, if an employee fails to give 14 days’ notice before leaving, the employer can claim compensation. Additionally, if an employee leaves without compensating the employer, they may face a one-year employment ban.
However, exemptions may apply for highly skilled workers, as outlined in future executive regulations. The intent is to avoid restricting the movement of valuable talent.
Overall, the new law reflects a significant departure from the previous approach to probation. While it introduces more complexity, I believe these changes are for the better.
Tim Elliott
That’s part three in our series: probation under the new UAE employment law. And that’s another episode of Lawgical, updates to the UAE’s employment law in six easy pieces—or one larger podcast, depending on how you like to listen. Ludmila Yamalova is the managing partner here at Yamalova & Plewka. As always, Ludmila, thank you.
Ludmila Yamalova
Thank you, Tim. As always, it’s been insightful chatting with you.
Tim Elliott
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