UAE Labour Law: What happens if you resign during probation?

Dubai: Many employees in the UAE assume that a probationary period offers little protection, and that leaving early is either impossible or automatically penalised. Neither is true.

The UAE Labour Law, Federal Decree-Law No. 33 of 2021, sets out a clear framework for resigning while on probation. Understanding the rules can help employees avoid unnecessary disputes, delays or even a labour ban.

Can you resign during your probation period?

An employee is fully entitled to resign during the probationary period, which under the law cannot exceed six months.

However, employees must follow the required notice period when resigning during probation. The notice period depends on what the employee plans to do after leaving:

• Moving to another job within the UAE: The employee must give their current employer at least one month's written notice.

• Leaving the UAE: The employee must give 14 days' written notice.

“Employees who resign during probation are paid up to their last working day but are not entitled to end-of-service gratuity, since that benefit only accrues after completing a full year of continuous service,” Salam Pappinissery, CEO, YAB Legal Services, told Gulf News.

Can a non-compete clause still apply?

A non-compete clause can still apply if it was validly included in the original contract, provided it is reasonable in duration, geography and scope, and is tied to protecting genuine business interests such as client relationships or trade secrets.

“It's worth noting that such a clause becomes void if the employer is the one who ends the contract unlawfully,” Pappinissery explained.

Do you have to pay your employer if you resign?

As for reimbursement, the employee themselves does not typically have to pay anything directly to the former employer simply for resigning properly and giving the required notice.

“The obligation to compensate the original employer for recruitment-related costs falls on the new employer, not the employee. What the employee should avoid is leaving without giving the correct notice period, since that exposes them to a compensation claim equal to their wages for the unserved notice,” he said.

Where a worker resigns during probation to join another UAE establishment, the new employer is required to compensate the original employer for the costs incurred in recruiting or contracting that worker, unless the two employers agree otherwise between themselves.

“This is a business-to-business arrangement, and employees should not accept demands from a previous employer to personally settle such costs, that liability does not rest with them under the law.”

What is the biggest mistake employees make during probation?

According to Pappinissery, the most common and costly mistake most employees make is simply not putting the resignation in writing and not observing the notice period at all, often because the employee believes probation means they can walk away instantly.

“Skipping the notice period, or leaving the country without formally notifying the employer, can trigger a one-year labour ban and make it difficult to secure a new work permit. The safer approach is always to resign formally in writing, respect the notice period (or pay in lieu of it, where agreed), and keep documentation of every step,” he said.