UAE probation period cannot extend beyond six months

My company operates in a free zone and all of our employment contracts state a probation period of six months. Someone joined us over five months ago in a junior management position but the company feels that he is not performing, so they want to terminate his current contract and put him on to a new one. This means his probation period will start all over again. They will not cancel and reapply for his employment visa. I would like to know if it is legal to do this. CL Dubai

It is illegal to make someone work for more than six months under probation, even with a new contract. Article 37 of UAE Labour Law states: “The employee may be appointed for a probationary period not to exceed six months, and the employer may terminate the services of the employee during this period without giving a notice or end of service remuneration. Appointment of the employee on probation basis in the service of one particular employer may not be made more than once. However if the employee passed the probationary period satisfactorily, and remained in service, such period of service shall be computed in the period of his service.” It is therefore quite clear that the employee must either be taken on as a permanent member of staff or his employment terminated before the end of the initial six-month period.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com