Questions & Answers
How can a DIFC company protect itself if an employee leaves within the first month?
Dear Lawyers,
How does a DIFC company protect itself if an employee leaves within 15 days or 1 month of joining (during the probation period)?
Dear Questioner,
Thank you for your question!
When an employee leaves within the probation period, a DIFC company can take several protective measures.
First, it's important to have a well-drafted employment contract in place that clearly defines the terms of probation, notice periods, and any applicable penalties for early resignation.
During probation, the employer has the right to terminate the contract with shorter notice, typically as outlined in the contract itself.
You may also consider including a clause about repayment of any company-provided benefits if the employee leaves prematurely.
However, every case has its own nuances depending on the specific circumstances and contract terms.
I would be happy to assist you in reviewing or drafting an employment contract that provides adequate protection for your company.
Feel free to reach out to me via WhatsApp or phone at [-------], or email me at [-------] to discuss further and find the best solution for your business.
Best regards,
Suhail Rana
Dear Questioner,
If the worker wishes to transfer, during the trial period, to work for another employer in the country, he must notify the original employer of this in writing no less than a month from the date of his desire to terminate the contract.
The new employer is obligated to compensate the original employer for the costs of recruiting or contracting with the worker unless otherwise agreed.
In the event that the foreign worker wishes to terminate the employment contract, during the trial period, to leave the country, he must notify the employer of this in writing, at a minimum of fourteen (14) days in advance.
Dear Questioner,
Understanding Employee Probation Periods in DIFC
1. Probation Duration:
In the DIFC, probation periods typically last 3 to 6 months but can vary by company.
2. Legal Framework:
It is governed by DIFC Employment Law No. 2 of 2019, which outlines termination rights and notice requirements.
3. Termination:
Either party can terminate during probation with written notice, usually 1 week to 1 month, as per the contract.
4. Protective Measures:
- Clear Contracts: Clearly define probation terms and expectations.
- Onboarding: Implement strong onboarding to integrate new employees.
- Regular Reviews: Conduct performance check-ins to address issues early.
- Retention Strategies: Foster engagement through mentorship and team activities.
- Exit Interviews: Gather insights from employees who leave.
- Legal Consultation: Consult legal experts to ensure compliance and protect interests.
Following these practices, DIFC companies can better manage probation periods and reduce turnover.
Dear Questioner,
In the DIFC (Dubai International Financial Centre), companies can protect themselves from early employee departures during the probation period by implementing the following measures:
- Probation Clause:
Ensure that the employment contract includes a clear probation clause. Under DIFC Employment Law, the employer can terminate the employee during the probation period with at least 7 days' written notice, unless a longer notice period is agreed upon in the contract.
- Notice Period:
Include a minimum notice period in the employment contract, even during the probation period. While 7 days is the legal minimum, you can extend this to 15 or 30 days as per the contract terms.
- Recruitment Costs:
Although UAE law typically prohibits requiring employees to repay recruitment or visa costs, the company can minimize upfront expenses such as offering staggered benefits or delayed bonus payments until the probation period is successfully completed.
- Contractual Penalties:
While financial penalties for leaving early during probation are not common under DIFC law, companies can structure performance bonuses or sign-on incentives to be paid only after a specified period, such as 3 or 6 months, to encourage retention.
In conclusion, ensuring that the employment contract includes strong probation terms and notice periods will provide your company with legal protections if an employee leaves shortly after joining.
Best regards,
Omar Mosaad
