We are hiring a few new employees this month. We know that there are changes in the UAE labour law regarding the probation period, can you explain what they are? MG, Abu Dhabi
The new Labour Law, which came into effect on February 2, has made a number of changes about the probation period and all employers and employees should be aware of these.
Previously, the old Labour Law stated that the maximum probation period was six months and this remains unchanged. Employees on probation could be also terminated without notice under the previous law but this is no longer the case. Under the new law, all employees on probation must be given 14 days’ notice of termination by the employer.
The situation is slightly different for employees who wish to leave. All employees who are on probation must give formal notice if they end their employment with a company. The exact number of days depends on their intentions.
If the employee intends to leave the UAE, they are required to provide notice of 14 days. If the employee is moving to a new job within the country, they are required to give 30 days' notice.
If an employee moves to a new company within the probation period, the new employer is obliged to compensate the previous employer for costs incurred in employing them, such as visa fees.
It should be noted that if an employee says that they intend to leave the UAE but then returns within three months to start new employment, the new employer has to pay the previous employer for the costs incurred, just as if the new employment was continuous.
I am in the UAE on a visit visa. I lived here previously, so I have a UAE driving licence. However, I lost it. How can I get a replacement licence because it is still valid? Will I get into trouble with the police? HI, Dubai
There are no legal issues if someone loses a driving licence but it must be replaced as soon as possible
Keren Bobker,
senior partner, Holborn Assets
There are no legal issues if someone loses a driving licence but it must be replaced as soon as possible.
It is a relatively simple process to replace a lost driving licence, although this can be done only by people on a UAE residence visa.
HI cannot request a replacement licence until he has a new job and the visa and Emirates ID have been issued. But he can confirm to an employer that he has a driving licence that can be reinstated following his formal employment in the UAE.
The exact procedure and point of contact varies between emirates, but if HI obtains a new job with a Dubai visa, he will need to contact the Roads and Transport Authority and apply for a replacement.
The charge is Dh300 in addition to a knowledge and innovation fee of Dh20. The reissuance of a licence takes only a few days.
Should I pay for my visa expenses because I cancelled it early? I have read your previous columns that state it is illegal. However, I just found out that I am on a free zone visa. I have no idea who to contact or what law applies to me.
My employer told me that my visa is under the authority of Dubai, but they didn’t give me a clear answer on whether I should pay for visa cancellation. NA, Dubai
NA resigned before the new Labour Law came into force on February 2, but this situation remains unchanged. No employer can ask an employee to pay for the costs that it incurs when employing them, whether they are visa or work permit charges, or recruitment fees.
There have been several government announcements to this effect and it is included in Ministerial Order 52 of 1989, Article 6a, which states: “An undertaking from the employer to the effect that he shall sponsor and be responsible for the recruited Labourer, the bearing of his recruitment expenses and his employment in accordance with the employment contract in a way not prejudicing the provision of the Federal Law No (8)/1980 referred to herein.”
This rule applies whether a person is employed by a mainland employer or in a free zone.
After the change in the employment laws, nearly all free zones, apart from Dubai International Financial Centre and Abu Dhabi Global Market, will follow the new Labour Law.
This applies to NA’s employer and also all other private companies. She is not liable to pay for visa costs and can show this information to the employer.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
The advice provided in our columns does not constitute legal advice and is provided for information only
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UAE%20ILT20
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
COMPANY%20PROFILE
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UAE's role in anti-extremism recognised
General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.
He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.
"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.
He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The%20specs
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
