04 Apr UAE Employee Transfer Between Companies 2025: Complete Guide to Job Mobility and Employer Obligations
The UAE’s reformed Labour Law (Federal Decree-Law No. 33 of 2021) significantly improved employee mobility by eliminating restrictions on job transfers between companies. Understanding the current transfer rules is essential for both employers losing talent and those seeking to hire employees from competitors within the UAE.
Key Changes to UAE Employee Transfer Rules
Under the current labour law, employees can transfer between employers without the previous employer’s consent, provided they serve the required notice period and meet all contractual obligations. The previous labour ban system has been abolished.
Transfer Process Overview
| Step | Action | Responsible Party | Timeline |
|---|---|---|---|
| 1 | Submit resignation with notice | Employee | 30-90 days per contract |
| 2 | Cancel current work permit | Current employer | Within 14 days of last day |
| 3 | Apply for new work permit | New employer | Before visa expiry |
| 4 | Complete new employment contract | Both parties | Before starting work |
| 5 | Register with MOHRE | New employer | Within 14 days of joining |
Employer Obligations When an Employee Transfers
- Final Settlement: Pay all outstanding dues including end of service gratuity, unused annual leave, and any pending salary within 14 days
- Work Permit Cancellation: Cancel the employee’s work permit promptly to avoid blocking their new employment
- Experience Certificate: Provide an employment experience letter upon request
- Non-Compete Review: Review any non-compete clauses in the employment contract for enforceability
- Salary Through WPS: Ensure final salary payment is processed through the Wages Protection System
Grace Period for Job Transfer
After an employment contract ends, the employee has a grace period to find new employment or leave the UAE. The standard grace period is 30 days from the date of visa cancellation. During this period, the employee can legally reside in the UAE while completing transfer formalities with a new employer.
Transfer During Probation
Employees in their probation period can also transfer to a new employer. They must provide 14 days written notice during probation. The new employer must apply for a fresh work permit, and the employee’s probation period with the new company starts from zero.
Restrictions and Considerations
While the labour ban has been abolished, some restrictions still apply. Free zone employees transferring to mainland companies (or vice versa) may have additional administrative requirements. Employees who leave without serving notice may face a one-year labour ban for limited contract violations.
How Business Umbrella Can Help
Business Umbrella assists both employers and employees through the transfer process. Our recruitment team handles work permit applications, MOHRE registrations, and ensures compliance with all transfer requirements across mainland and free zone jurisdictions.
Frequently Asked Questions
Can an employer block an employee from transferring to another company?
No, under the current UAE Labour Law, employers cannot prevent an employee from transferring to another company. The previous system of labour bans and NOC requirements has been abolished. Employees are free to move after serving their notice period.
What happens to end of service gratuity when an employee transfers?
The previous employer must pay the full end of service gratuity based on the employee’s tenure with that company. The gratuity calculation resets with the new employer, and the new tenure begins from the start date with the new company.
Can a free zone employee transfer to a mainland company?
Yes, free zone employees can transfer to mainland companies and vice versa. The process involves cancelling the existing free zone work permit and obtaining a new mainland work permit through MOHRE. Additional documentation may be required depending on the specific free zone.