✓ Last verified: 29 September 2026 · Federal Decree-Law No. 33 of 2021, Arts. 6, 9, 54 · Cabinet Resolution No. 1 of 2022, Arts. 11–12 · MOHRE transfer permit service page

Hire someone out of another company's probation and their recruitment bill can follow them to you.

Most guides on probation are written for the worker. This one is for the company doing the hiring. Article 9(3) of the Labour Law says that when a worker moves to a new UAE employer during probation, the new employer compensates the original employer for the costs of recruiting or contracting the worker, "unless otherwise agreed upon". The clause has no ceiling, no definition of the costs, no procedure and no MOHRE gate. What it does have is a single lever, and you need to pull it before you file the transfer permit.

The rule, in the words of the law

Article 9(3) of Federal Decree-Law No. 33 of 2021: "If the worker wishes to move during the probationary period, to work for another employer in the State, he shall notify the original employer of the same in writing within not less than one month from the date of his wish to terminate the contract. Then, the new employer shall compensate the original employer for the costs of recruitment or contracting with the worker, unless otherwise agreed upon."

Two sentences, two different parties. The first puts a duty on the worker: one month's written notice. The second puts a duty on you: compensation to a company you have never dealt with, for money it spent before you knew the candidate existed. Nothing in the article makes your liability depend on whether the worker gave proper notice, and nothing makes it depend on the worker's own repayment of anything, because the worker cannot lawfully be made to repay it.

Article 9(4) extends the same bill to a second route: a foreign worker who leaves the country during probation and "wishes to return to the State and obtain a new work permit within (3) three months from the date of departure". In that case "the new employer shall pay the compensation stipulated in Clause (3)", this time "unless in case of an agreement between the worker and the original employer to the contrary".

Four ways a probationer reaches you, and what each one costs

How the candidate arrivesThe worker's dutyYour exposure as the new employerWhere it says so
Still in the UAE, moving straight from the probation employer to youOne month's written notice to the original employerCompensate the original employer's recruitment or contracting costs, unless the two of you agree otherwiseArt. 9(3)
Left the country during probation and comes back on your permit within 3 months of departure14 days' written notice before leavingSame compensation, unless the worker and the original employer agreed otherwiseArt. 9(4)
Left the country during probation and comes back after 3 months14 days' written notice before leavingNo compensation under Article 9Art. 9(4), read by its own time limit
Left the country without the 14 days' noticeBreached Article 9No work permit can be issued to them for one year from departure, unless MOHRE exempts themArt. 9(6); Cabinet Resolution No. 1 of 2022, Art. 11

Read the second row carefully. In the in-country case, the "otherwise agreed" escape is an agreement between the two employers. In the return-within-three-months case, the wording places it between the worker and their old employer. Our reading: if you are hiring someone who left the UAE a few weeks ago, ask for the written agreement with the previous employer, because an agreement you reach with that employer yourself is not what the clause describes.

The one-year ban in the last row attaches only to leaving the country in breach of the article. A worker who moves between UAE employers without giving the full month of notice owes the original employer compensation equal to the wage for the unserved notice under Article 9(5), but there is no permit ban for that route. Cabinet Resolution No. 1 of 2022, Article 11, lets MOHRE lift the ban for workers with skills "in demand", workers whose residence visa is sponsored by their family, Golden Visa holders, and categories the Minister designates.

What "costs of recruitment or contracting" means

The Decree-Law does not define the phrase, and neither does the Implementing Regulation. The nearest official description is MOHRE's own guide for new employers, which tells companies they bear "the costs of recruiting the employee from his/her home country, in addition to the government fees related to the employee's employment with the establishment, as well as insurances, contributions, and guarantees specified by the applicable legislation". That is a description of what an employer must pay, not a schedule of what a new employer must reimburse, but it is the best map of the territory.

Below is our reconstruction of what a previous employer could plausibly put on the invoice. The figures are the ones we have verified elsewhere on this site; the list itself is ours, not MOHRE's.

Line the original employer may have paidTypical amountSource of the figure
Work permit application and two-year issuanceAED 50 + AED 250 / 1,200 / 3,450 by MOHRE categoryMOHRE service pages
Workers' protection insurance policyAED 137.50 skilled, AED 180 limited-skill, per 30 monthsMinisterial Resolution No. 318 of 2022
Health insuranceAED 320 a year on MOHRE's basic package; Dubai and Abu Dhabi schemes price higherour health insurance guide
Residence layer: entry permit, medical, Emirates ID, stampingAED 2,500–4,500 reported, not an official tariffmarket pricing, see the hiring-cost guide
Air ticket from the home countryvariesMOHRE's employer guide lists recruitment from the home country as the employer's cost
Recruitment agency feeno official tariff; often the largest lineAgencies are licensed under Art. 6(3) and paid by employers, never by workers

On the government and insurance lines alone, our hiring-cost guide puts a two-year overseas hire at roughly AED 4,600–6,600. An agency fee can multiply that. Whether the original employer can also claim the time of its HR team, or relocation allowances it chose to pay, is exactly the kind of question the article leaves open, which is why the next section matters more than this table.

What the article does not say

The gaps are where the money is, so here they are in one place. Each of these is our observation on the text, not an official position.

  • No ceiling. Compare the non-competition clause. Cabinet Resolution No. 1 of 2022, Article 12(5)(a), lets a worker or new employer buy out a non-compete for "compensation not exceeding three months of the worker's wage". Article 9(3) has no equivalent cap. The only limit is what the original employer can show it actually spent.
  • No gate at MOHRE. We read MOHRE's service page for the transfer work permit on 29 September 2026. Its conditions are that the candidate holds no active permit, that the application is filed within 90 days of the previous permit's cancellation, and the usual licence, age and occupation checks. It asks for no consent from the previous employer and no proof that recruitment costs were settled. The compensation is therefore a claim between two companies, not a step in the permit process. Your permit can issue while the bill is still unpaid, and the bill does not go away because the permit issued.
  • No MOHRE forum. Article 54 gives the Ministry jurisdiction over disputes "between the Employer and the Employee or their beneficiaries". A claim by one employer against another is not in that sentence. Our reading: an original employer that wants to enforce Article 9(3) against you would be in the civil courts, with the ordinary costs and timelines, which is one reason many never pursue it and one reason the ones that do tend to have a large agency invoice in hand. Take legal advice before relying on either point.
  • No procedure for "otherwise agreed". The article does not say the agreement must be in writing. Get it in writing anyway. A two-line letter from the original employer waiving or fixing the amount, exchanged before you file, is the whole of your protection.

The one thing you cannot do: pass it to the worker

Article 6(4) of the Decree-Law: "The employer is prohibited from charging the worker for the fees and costs of recruitment and employment or collecting them from him, whether directly or indirectly." That sentence reaches both companies in the story. The original employer could not have made the worker repay the visa and permit when they resigned, and you cannot recover from the worker what you pay the original employer under Article 9(3). A clause in your offer letter that makes the candidate liable for "recruitment costs reimbursed to your previous employer", a deduction from the first salaries, or a "training bond" that is really the same money under another name, all run into "directly or indirectly".

The Executive Regulation lists the deductions an employer may make from wages, and reimbursement of recruitment costs is not among them; our salary calculator sets out what may lawfully leave a payslip. The penalties chapter of the Decree-Law is not gentle with employers who treat permits and fees as a cost centre to be recovered from staff.

What you get in return

Two things make the probation hire cheaper than it looks.

  • No non-compete. Cabinet Resolution No. 1 of 2022, Article 12(5)(b), exempts the worker from a non-competition clause "if the contract is terminated during the probationary period". A candidate leaving a competitor in month four cannot be held to a two-year restraint, whatever their contract says. The recruitment-cost bill is, in effect, the price of that freedom.
  • The notice failure is theirs, not yours. If the worker leaves their probation employer without the full month, Article 9(5) makes the worker liable for the wage for the unserved notice. That is a debt between the worker and the old employer. Nothing in Article 9 transfers it to you, and Article 6(4) means you should not offer to pay it and then recoup it from salary.

Before you file the transfer permit

  1. Establish whether they are still on probation. Probation runs for at most six months "from the date of commencement of work" (Art. 9(1)), not from the contract date or the visa date. Ask for the start date. A candidate in month seven is outside Article 9 entirely, and the ordinary notice regime of 30 to 90 days applies instead (notice guide).
  2. Establish the route. Still in the country, or left and returning? If they left, on what date, and did they give 14 days' written notice first? The answers decide whether you face Article 9(3), 9(4), nothing, or a one-year ban.
  3. Ask for the dated notice. The one-month notice under Article 9(3) is the worker's obligation, but a copy in your file is what shows the contract ended lawfully under Article 42(3), which is what makes the transfer permit route available at all.
  4. Contact the original employer before filing, and agree the number in writing. "Unless otherwise agreed upon" is your only lever. Ask what they spent and for the invoices. Offer to settle the government and insurance layer and negotiate the agency fee, or ask for a waiver. Get whatever is agreed on their letterhead or from a company e-mail address.
  5. Keep the candidate out of the money. No clause, deduction, bond or side letter that makes the worker carry any part of what you pay (Art. 6(4)).
  6. Budget your own fees. The transfer permit costs AED 50 plus AED 250, 1,200 or 3,450 depending on your MOHRE category, and must be filed within 90 days of the previous permit's cancellation. Add the residence layer if you are sponsoring the visa.
  7. If the candidate is banned, check Article 11. Skills in demand, a family-sponsored residence visa or a Golden Visa can each ground an exemption request to MOHRE. Without one, the permit will not issue for a year from the departure date, and no agreement with the old employer changes that.

FAQ

Does a new employer have to pay the old employer's recruitment costs when hiring during probation in the UAE?

Yes, by default. Article 9(3) of Federal Decree-Law No. 33 of 2021 says the new employer "shall compensate the original employer for the costs of recruitment or contracting with the worker, unless otherwise agreed upon". The same applies under Article 9(4) if the worker left the UAE during probation and returns on a new permit within three months of departure.

How much is the recruitment-cost compensation under Article 9(3)?

The law sets no figure and no ceiling. MOHRE's guidance describes an employer's recruitment costs as the cost of recruiting from the home country, the government fees for the employment, and the required insurances and guarantees. On verified government and insurance fees alone, a two-year overseas hire runs to roughly AED 4,600–6,600; an agency fee can be much larger. The amount is whatever the original employer can evidence, unless you agree a different figure.

Will MOHRE refuse the transfer work permit if the recruitment costs are unpaid?

MOHRE's transfer work permit service page, read on 29 September 2026, does not list previous-employer consent or proof of payment among its conditions. The permit can issue with the compensation unsettled. The compensation remains a claim by the original employer against the new one.

Can the new employer recover the Article 9(3) compensation from the employee?

No. Article 6(4) prohibits an employer from charging the worker for the fees and costs of recruitment and employment, or collecting them "directly or indirectly". A clause, salary deduction or bond that shifts the compensation to the worker breaches that article.

Does the compensation apply if the employee left the UAE and comes back later?

Only if they obtain a new work permit within three months of the date of departure (Article 9(4)). After three months, Article 9 imposes no compensation. If they left without giving 14 days' written notice, no work permit can be issued to them for one year from departure, unless MOHRE exempts them under Article 11 of Cabinet Resolution No. 1 of 2022.

Who can be exempted from the one-year work permit ban after leaving during probation?

Under Article 11 of Cabinet Resolution No. 1 of 2022, MOHRE may exempt workers with essential skills or knowledge in demand, workers whose residence visa is sponsored by a family member, Golden Visa holders, and professional categories the Minister designates by resolution.

Can an employee on probation be held to a non-compete clause when they join a new company?

No. Article 12(5)(b) of Cabinet Resolution No. 1 of 2022 exempts the worker from the non-competition clause if the contract is terminated during the probationary period.

How much notice must an employee give to move to another UAE employer during probation?

At least one month, in writing, to the original employer (Article 9(3)). If they leave without it, Article 9(5) makes the worker liable to the original employer for the wage for the notice period or its unserved remainder. That liability is the worker's, not the new employer's.

Where does the original employer claim the compensation from the new employer?

The law does not say. Article 54 gives MOHRE jurisdiction over disputes between an employer and an employee; a claim between two employers is not described there. Our reading is that it would be a civil claim, but take legal advice on the forum and the time limit before relying on that.

How do I avoid paying recruitment costs when hiring someone on probation?

Article 9(3) applies "unless otherwise agreed upon". Contact the original employer before filing the transfer permit and agree in writing either a waiver or a fixed amount. In the return-within-three-months case, the article places the agreement between the worker and the original employer, so ask the candidate for that document.

Does probation count from the contract date or the start date?

From the date of commencement of work (Article 9(1)), for a maximum of six months. A candidate who started more than six months ago is no longer on probation, and Article 9 does not apply to their move.

Sources

Verified 29 September 2026. On that date we downloaded MOHRE's consolidated PDF of Federal Decree-Law No. 33 of 2021 with its amendments and the PDF of Cabinet Resolution No. 1 of 2022, and read Articles 6, 9, 10 and 54 of the Decree-Law and Articles 11 and 12 of the Regulation in full; we also read MOHRE's Awareness Guide for New Employers and the live service page for the transfer work permit. Four points are our own reading and are marked where they appear: the reconstruction of what recruitment costs may include, the contrast with the three-month cap on non-compete buyouts, the observation that MOHRE's transfer permit does not check for payment, and the view that an employer-to-employer claim falls outside Article 54. The Regulation's English text is published by MOHRE as an unofficial translation. General information for employers, not legal advice.

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