UAE Employment Contract Rules 2026: Probation & Notice

A plain guide to UAE employment contract rules under MOHRE, unlimited contracts, the 6-month probation period, notice periods, and lawful termination and end-of-service rights.

Published: 28 August 2026

Quick answer: Since 2022, every private-sector employee in the UAE works under an unlimited (indefinite) employment contract, since the old limited/fixed-term contract type was phased out under Federal Decree-Law No. 33 of 2021 (the UAE Labour Law). The maximum probation period is 6 months. If either the employer or employee ends the contract during probation, the employee must generally give 14 days’ notice to stay in the UAE, or 1 month’s notice if moving directly to a new employer. After probation, standard notice periods of 30 to 90 days apply, as agreed in the contract. Failing to follow correct notice and termination procedures can affect an employee’s end-of-service entitlements.

Understanding these rules protects both sides: employees who know their rights can avoid losing gratuity or facing an unfair labour ban, and employers who follow the correct process avoid MOHRE penalties and labour complaints.

The Unlimited Contract: The Only Contract Type Since 2022

Before February 2022, UAE employers could offer either a limited (fixed-term) contract or an unlimited (indefinite) contract. Federal Decree-Law No. 33 of 2021 abolished the limited contract entirely for the private sector. Every new employment contract registered with the Ministry of Human Resources and Emiratisation (MOHRE) is now an unlimited contract, meaning it has no fixed end date and continues until either party lawfully ends it.

This matters for termination and notice rules because, under the old system, ending a limited contract early carried different (often harsher) financial consequences than ending an unlimited one. Under the current law, the same notice and termination framework applies to essentially all private-sector employees, regardless of how long they have worked for the employer.

The Probation Period: Maximum 6 Months

A UAE employer may include a probation period in the employment contract, but it cannot exceed 6 months from the employee’s start date. During this period, the employer evaluates the employee’s suitability for the role, and either party may generally end the employment relationship, subject to the notice rules below.

Key points about probation under the UAE Labour Law:

The probation period must be stated in the contract. If the contract does not mention a probation period, the employee is treated as a permanent employee from day one.
An employer cannot place an employee on probation more than once for the same role with the same employer.
An employee can generally be moved to a different role during probation, but the total probation period across roles with the same employer cannot exceed 6 months.
The 6-month limit is a legal maximum, not a default. Contracts may set a shorter probation period.

Ending Employment During Probation

The notice requirements during probation depend on where the employee is going next:

If the employee is leaving the UAE, or not moving to a new job in the UAE

Either party must give at least 14 days’ written notice before ending the contract. This is the minimum protection period during probation, whether it is the employer ending the employment or the employee resigning.

If the employee is moving directly to a new employer inside the UAE

The employee must give at least 1 month’s written notice to the current employer. This longer notice period exists specifically to give the current employer reasonable time to arrange a replacement when the employee is not leaving the country’s workforce, just changing employer.

If the employer ends the contract during probation

The employer must still provide the applicable notice period (14 days or, in some cases, longer as agreed in the contract) and must settle the employee’s dues within 14 days of the contract ending, including any earned salary, unused leave pay, and other benefits accrued up to the termination date.

Notice Periods After Probation

Once an employee has passed probation, the standard UAE Labour Law notice period applies unless the contract specifies otherwise:

Minimum notice period: 30 days
Maximum notice period: 90 days

The exact figure within this range is whatever the employment contract states. Most standard MOHRE contracts set a 30-day notice period, but employers and employees can agree to a longer period, up to the 90-day cap, particularly for senior or specialised roles.

During the notice period:
– The employee continues working and receiving full salary and benefits, unless both parties agree to a different arrangement (such as garden leave, where the employer chooses to pay out the notice period without requiring attendance).
– Either party can generally end the notice period early only by mutual written agreement, or the party ending it early may owe compensation equal to the unworked notice period’s salary.

Lawful Termination vs Arbitrary Dismissal

UAE law distinguishes between a lawful termination and an arbitrary (unfair) dismissal, and the distinction matters significantly for what the employee is owed.

A termination is generally lawful when:
– Proper notice is given (or payment in lieu of notice, where permitted).
– The reason for termination is not discriminatory or retaliatory.
– Due process is followed for termination based on misconduct, including any required warnings or an opportunity for the employee to respond, where the contract or internal policy requires this.

A termination may be considered arbitrary when:
– It is made without proper cause and appears to be linked to the employee filing a complaint, joining a union or workers’ committee, pregnancy, or similar protected circumstances.
– The employer terminates without following the correct notice and process requirements.

An employee who believes they were arbitrarily dismissed can file a complaint with MOHRE. If the complaint is not resolved, either party can escalate it to the labour courts. A successful arbitrary dismissal claim can result in compensation, in addition to standard end-of-service entitlements. For the step-by-step process of raising a workplace dispute, see our guide on filing a MOHRE labour complaint in the UAE.

Termination Without Notice (Summary Dismissal)

In limited circumstances, UAE Labour Law allows an employer to terminate an employee without notice and without paying compensation for the notice period. These circumstances generally require serious misconduct, such as:

Assuming a false identity or submitting forged documents or qualifications to obtain the job.
A probationary or confirmed error causing substantial material loss to the employer, provided the employer reports it to MOHRE within a specified timeframe.
Failure to perform basic duties under the contract despite a written warning and after a defined number of warnings within the same year.
Disclosing confidential information that causes material harm to the employer.
Being under the influence of alcohol or drugs during working hours.
Assaulting the employer, a manager, or a colleague during work.
Unauthorised absence from work exceeding a specified number of days within a set period, without a valid excuse.

Because these grounds are narrowly defined and carry a higher burden of proof for the employer, an employee dismissed under one of these categories who believes it was applied unfairly should raise the matter with MOHRE promptly.

Resignation Without Notice

Similarly, an employee can resign without notice, or without completing the notice period, only in limited circumstances defined by law, such as if the employer fails to meet its contractual obligations (for example, non-payment of salary for a defined period), commits assault against the employee, or if the workplace poses a serious risk to the employee’s health or safety that the employer fails to address.

Resigning outside these grounds without completing the required notice period can expose the employee to compensation liability equal to the unworked notice period’s salary, and can affect certain benefits.

How Notice Compliance Affects End-of-Service Entitlements

Following the correct notice and termination process directly affects what an employee is owed at the end of employment. Gratuity, unused leave payout, and other final dues are calculated separately from notice compliance, but failing to serve or receive proper notice can create deductions or disputes over the final settlement amount. For the full calculation method for gratuity pay, including how years of service and basic salary factor into the final figure, see our detailed guide on UAE end-of-service gratuity calculation.

Employers must generally settle all final dues, including any outstanding notice-period pay, gratuity, and leave balance, within 14 days of the contract ending. Delayed settlement can itself become the basis for a labour complaint.

What Happens If You Change Employer Mid-Contract

An employee who resigns from one job to join a new employer must follow the applicable notice rules above (14 days or 1 month during probation, 30 to 90 days after probation, per the contract). Failing to serve the correct notice, or leaving abruptly without agreement, can affect the sponsor transfer process and, in some cases, result in the previous employer reporting an unauthorised absence. For the full requirements and process for moving your work visa to a new employer, see our guide on UAE employment visa sponsor transfer.

Common Questions Employees and Employers Get Wrong

“My contract says limited, so different rules apply.” Since February 2022, all new and renewed private-sector contracts must be unlimited contracts. If your paperwork still says “limited,” check with MOHRE directly, since the underlying legal framework treats current contracts as unlimited regardless of old terminology carried over from a prior contract template.
“I can quit on the spot during probation with no notice.” Even during probation, 14 days’ notice (or 1 month if moving directly to a new UAE employer) is generally required, unless one of the narrow no-notice resignation grounds applies.
“My employer can extend my probation past 6 months if I need more training.” The 6-month probation cap is a hard legal maximum for the same role with the same employer, not something that can be extended by mutual agreement beyond the statutory limit.
“If I’m dismissed for any performance issue, I lose my gratuity.” Losing gratuity due to termination generally requires a summary dismissal for serious cause under the specific circumstances defined by law, not simply an unsatisfactory performance review.

If you run or work for a business that trades in used goods such as vehicles or antiques, that business also has its own VAT obligations. See our sister site’s guide on the UAE VAT Profit Margin Scheme for used cars, antiques, and second-hand goods for how that works.

Frequently Asked Questions

1. What is the maximum probation period allowed under UAE Labour Law?
6 months, and it must be stated in the employment contract. An employer cannot place the same employee on probation more than once for the same role.

2. How much notice is required if I resign during probation?
At least 14 days if you are not moving directly to another UAE employer, or at least 1 month if you are moving directly to a new employer inside the UAE.

3. What is the standard notice period after probation ends?
Between 30 and 90 days, depending on what the employment contract specifies. Most standard contracts use 30 days.

4. Are limited (fixed-term) contracts still allowed in the UAE?
No. Since Federal Decree-Law No. 33 of 2021 took effect in February 2022, all private-sector contracts must be unlimited contracts.

5. Can my employer fire me without any notice at all?
Only in narrowly defined cases of serious misconduct set out in the Labour Law, such as forged documents, serious misconduct causing material loss, or assault. Outside these grounds, proper notice or payment in lieu is required.

6. What happens if my employer does not give me proper notice?
You may be entitled to compensation equal to the salary for the unworked notice period, and you can file a complaint with MOHRE if the employer refuses to settle it.

7. Does an arbitrary dismissal affect my end-of-service gratuity?
Standard gratuity is generally still owed based on years of service and basic salary, separate from any additional compensation awarded for an arbitrary dismissal claim.

8. Can I be placed on probation again if I change roles within the same company?
The combined probation period across different roles with the same employer cannot exceed the 6-month legal maximum.

9. What should I do if I believe I was unfairly dismissed?
File a complaint with MOHRE as soon as possible. If it is not resolved at that stage, the matter can be escalated to the labour courts.

10. Do notice period rules apply the same way to all salary levels and job types?
The 14-day/1-month probation notice and 30-90 day post-probation notice framework applies broadly across private-sector unlimited contracts, but the exact notice length after probation depends on what is written in the individual contract, within the legal minimum and maximum.

Get Help With Your UAE Employment Contract

If you are unsure about your notice period, probation rights, or whether a termination was handled correctly, Yalah Dubai can review your contract and guide you through the right next step, whether that is a MOHRE complaint, a sponsor transfer, or confirming your final settlement is correct.

WhatsApp Yalah Dubai: +971 52 580 2100

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UAE Employment Contract Rules 2026: Probation Period, Notice Period & Termination Explained

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