On 14 June 2026, the UAE Ministry of Human Resources and Emiratisation (MOHRE) issued a fresh clarification on how workers in the private sector can transfer between employers and what the conditions are for early termination of a fixed-term contract. The substantive law has not changed — Federal Decree-Law No. 33 of 2021 remains in force, and the procedures laid out in the main guide on changing jobs in the UAE stay current. What MOHRE has clarified is the practical reading of several procedural points that had been the subject of repeated worker queries since the 2021 Law took effect.
This explainer summarises what is publicly known about the clarification, what remains unchanged, and how it affects workers currently weighing a move. For the definitive text and case-specific guidance, consult the official MOHRE portal at mohre.gov.ae or the MOHRE service line on 600 590 000.
What Has Not Changed
The legal architecture for private-sector employment in the UAE remains as set out under Federal Decree-Law No. 33 of 2021 and its implementing regulations:
- All UAE private-sector employment contracts are fixed-term, with a maximum length of three years per term (renewable).
- Probation caps at six months. During probation, either party can terminate with 14 days' written notice if the employee moves to another UAE employer.
- Notice periods post-probation are contract-specified and must fall between 30 and 90 days.
- The 6-month employer-imposed ban on moving between UAE employers, which existed under the old 1980 law, was abolished in 2022 and has not been reinstated.
- End-of-service gratuity accrues at 21 days of basic salary per year for the first five years of service and 30 days per year thereafter, capped at the equivalent of two years' wages.
- Arbitrary dismissal compensation remains at up to three months' wages, awarded only on a finding by MOHRE or a labour court.
- Non-compete clauses are enforceable for a maximum of two years and must specify a defined geographic and sectoral scope.
The Procedural Clarifications
The 2026 clarifications focus on three areas that have generated the largest volume of worker queries since the 2021 Law replaced the 1980 framework.
Early Termination by the Employee
An employee on a fixed-term contract who resigns before the contract expires must serve the contractual notice period (typically 30 to 90 days). Where the employee leaves without serving notice, the contract may provide for compensation in lieu of notice — capped at one month's gross wage under the 2021 Law — plus any properly drafted training-cost recovery clause. MOHRE has reinforced that this compensation is a contractual remedy, not a state-imposed fine, and is enforceable through the labour-court process rather than through visa cancellation or labour-permit blocks.
Transfer Timing
The outgoing employer must initiate work-permit cancellation within 14 days of the last working day. The new employer can apply for the replacement work permit using the cancellation paperwork; for coordinated transfers, the new permit can be issued the same day as the cancellation. The standard 30-day grace period applies between cancellation and the new visa being issued, with up to 180 days available for Golden Visa holders and specialised-talent categories. Children and spouses sponsored under the employee's residency must be cancelled or transferred to the new sponsor's coverage before the employee's own visa is cancelled.
What Counts as "Abandonment of Work"
One area MOHRE has reinforced is the threshold for the employer's filing of an absconding or absence report. The 2021 Law and its regulations provide that a properly documented absence — typically seven consecutive working days without justification — can support such a report. MOHRE has clarified that the procedure requires written notice to the employee at the registered address before an absconding report can be filed, and that an employee who can demonstrate constructive dismissal, unpaid wages, or other employer breach has a defence. Workers who believe an absconding report has been wrongly filed can challenge it through the MOHRE complaints process, which is free.
Practical Implications
For an employee planning a move, the practical takeaways are unchanged in substance but worth restating:
- Get the new offer in writing before resigning. The offer letter must match the MOHRE Standard Contract that will eventually be filed; where they conflict, the MOHRE filing governs in any UAE dispute.
- Serve the contractual notice unless a buy-out is agreed in writing with both employers.
- Track the visa cancellation. The 14-day clock starts on the last working day, not on the resignation date.
- Audit the final settlement. Pro-rated final-month salary, untaken annual leave, gratuity for completed service over one year, unpaid overtime, and reimbursed business expenses must be paid within 14 days of the last working day. Sign the settlement only after verifying the figures.
- Keep the paperwork. MOHRE complaints depend on written evidence — the offer letter, the resignation letter with proof of receipt, the MOHRE Standard Contract, and the final settlement document.
What This Means If You're Mid-Contract
For workers currently within a fixed-term contract, the 2026 clarifications do not change the legal position: resignation is permitted, the standard notice and gratuity rules apply, and the move can be coordinated so that the new visa issues the same day as the cancellation. The clarifications matter most for cases that have been ambiguous in practice — short-service resignations during probation, disputed absconding reports, and the calculation of compensation in lieu of notice. If your situation involves one of those, the case for taking formal legal advice or filing a MOHRE complaint is stronger than it was. For the routine case — clean resignation, served notice, transferred visa — the path described in the main job-transfer guide remains the right reference.
Frequently Asked Questions
Where can I read the official 2026 MOHRE clarification?
The MOHRE portal at mohre.gov.ae is the official source. MOHRE clarifications are typically published as ministerial decisions or service updates and may also appear in the official UAE Gazette. For interpretation of how a clarification applies to a specific case, MOHRE's free complaint and consultation channels are the most direct route: the 600 590 000 service line, the MOHRE app, or a walk-in at a Tasheel centre.
Does this change the gratuity formula?
No. End-of-service gratuity remains 21 days of basic salary per year of service for the first five years and 30 days per year thereafter, capped at two years' wages. The calculation base is basic salary, not total package; this is unchanged from the 2021 Law.
Can my old employer block my move?
The default 6-month employer ban that existed under the old 1980 law was abolished and has not been reinstated. The only routes by which a former employer can affect a job move are: (1) enforcing a properly drafted non-compete clause within its two-year maximum and defined scope; (2) filing an absconding report if the employee left without notice or contact; (3) seeking recovery of contractual obligations (training-cost reimbursement, compensation in lieu of notice) through the labour court. None of these constitute a blanket labour ban of the kind that existed pre-2022.
What if I'm already in the 30-day grace period?
The 30-day grace period for finding new sponsorship after visa cancellation continues to apply. Specialised-talent categories and Golden Visa holders have up to 180 days. Within the grace period the employee is permitted to remain in the UAE, complete the new employment paperwork, and have the new visa issued. If the grace period is approaching expiry without a new sponsor in place, the employee can either switch to a dependent visa (where a spouse sponsor is available) or apply for an extension through ICP.
Does this affect free-zone or DIFC employees?
The MOHRE clarification covers the federal private-sector regime under Federal Decree-Law No. 33 of 2021. Employees governed by DIFC Employment Law (2019) or ADGM Employment Regulations (2019) remain under those separate jurisdictions, which have their own notice, gratuity (DEWS in DIFC), and dispute-resolution frameworks. Free zones outside DIFC and ADGM generally apply the federal Labour Law, sometimes with additional zone-specific rules — check with the relevant free-zone authority.
