EOSB During Probation — UAE & Saudi Arabia Rules

Under UAE Federal Decree Law No. 33 of 2021, Article 51, you must complete a minimum of 1 year of continuous service to be entitled to EOSB gratuity. This applies whether you resign or are terminated.

If you leave — or are let go — before completing 12 months, you receive zero EOSB. This is not a penalty; it is the statutory minimum threshold for eligibility.

Your probation period counts toward this 1-year requirement. If you complete 6 months of probation and then 6 more months as a confirmed employee, you have 1 year of service and are entitled to EOSB.

Under UAE law, the maximum probation period is 6 months. It can be extended once for an additional period, provided the total probation does not exceed 6 months.

Key rules during UAE probation:

• The employer must specify the probation period in writing in the employment contract
• An employee cannot be placed on probation more than once with the same employer
• If the employee passes probation without being notified of termination, they are automatically confirmed
• During probation, either party can terminate with 14 days' written notice

Since probation cannot exceed 6 months and EOSB requires 12 months of service, it is not possible to earn EOSB during the probation period alone in the UAE.

The KSA rules are different and depend on how your employment ends:

• Terminated by employer: You are owed ESB from day one — there is no minimum service requirement for terminated employees under Article 84 of the Saudi Labour Law
• Resigned: You must have completed at least 2 years of service to receive any ESB. Less than 2 years = zero ESB on resignation

This creates an important distinction: a KSA employee terminated during their first year still receives ESB (pro-rated), while one who resigns during the same period receives nothing.

Under the Saudi Labour Law, the maximum probation period is 90 days. This can be extended to 180 days (6 months) with a written agreement between the employer and employee.

Key rules during KSA probation:

• The probation period must be stated explicitly in the employment contract
• Official holidays and sick leave are not counted as part of the probation period
• Either party may terminate the contract during probation without notice or compensation
• An employee can only serve one probation period with the same employer (unless they are in a different role and at least 6 months have passed since the first probation ended)

This is an important point that is often misunderstood: your probation period counts toward your total years of service for EOSB/ESB calculation in both UAE and KSA.

If you complete probation and continue working, your service start date is the day you began employment — not the day you were confirmed. This means:

• An employee who started on 1 January 2020 with 6 months probation and leaves on 1 January 2026 has 6 years of service, not 5.5 years
• The probation months contribute to the gratuity accrual
• This applies in both UAE and KSA

Use our calculators (UAE | KSA) to see your exact EOSB based on your full service period including probation.

Being terminated during probation has different EOSB implications depending on the country:

UAE: Since you will have less than 1 year of service, you are not entitled to EOSB regardless of whether you resigned or were terminated. The 1-year minimum applies to all cases.

KSA: Even during probation, if the employer terminates you, you are entitled to ESB for the period worked — there is no minimum service requirement for employer-initiated termination. However, the amount will be small (pro-rated for the days or months worked).

In both countries, a terminated probation employee is entitled to:

• Outstanding salary for days worked
• Unused annual leave payout (if any leave has accrued)
• Repatriation ticket (employer must fund return travel)