Transferring an Employee’s Visa Between UAE Companies: How the Process Works

Hiring someone who already lives in the UAE looks simpler than recruiting from abroad, and in many ways it is. Many founders assume the employee simply hands their visa over to the new company. That is not how it works. The previous employer’s permit is closed, and the new employer issues its own permit and residence visa.

Why a Visa Cannot Simply Be Handed Over

Residency in the UAE is tied to the sponsoring employer’s license and establishment file. Private sector employment is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, and each work permit sits inside one employer relationship. A so-called visa transfer is therefore two separate actions: the old employer cancels its permit and residence, and the new employer applies for a fresh permit and visa. The employee does not need to leave the country, but the cancellation must be completed first. A detailed guide to transferring a visa between companies in the UAE sets out each stage in more depth.

Who Processes the Transfer

The authorities involved depend on each employer’s licensing. Mainland employers issue and cancel work permits through the Ministry of Human Resources and Emiratisation (MOHRE), while residence stamping and Emirates ID updates are handled by the immigration authority. Free zone companies generally process permits and residence through their own free zone authority. A move between the mainland and a free zone therefore involves both systems, and the cancellation on one side must finish before issuance can begin on the other.

The Transfer Step by Step

The sequence is fixed. First, the employee and current employer agree the exit terms: the notice period, any probation conditions, the cancellation date and the end-of-service settlement, which is generally payable within 14 days of the contract ending. Second, the current employer files the cancellation of the work permit and residence, and the employee keeps the confirmation, since the new employer will need it. Third, the new employer submits its permit application with the signed employment contract, followed by the residence visa once the permit is approved. Finally, the employee completes the medical fitness test and biometrics, the new employer arranges health insurance and both sides record the new visa and Emirates ID expiry dates.

Starting work before the old permit is cancelled creates compliance risk for both the employee and the new company, so the start date should be aligned with the cancellation date.

Contract Terms That Can Delay a Hire

A transfer can stall on contract terms rather than paperwork. Notice periods decide when the employee is free to start, and probation status changes what they owe the current employer. Non-compete clauses deserve particular attention when hiring from a competitor. Under Article 10 of the labour law and Article 12 of Cabinet Resolution No. 1 of 2022, a non-compete restriction must be limited in place, time and type of work, cannot exceed two years after the contract ends and becomes void if the employer terminated the contract in breach of the law. The implementing regulation also allows an employee to be released from a non-compete if the employee or the new employer pays compensation of up to three months’ wages, with the previous employer’s written approval. The clause should be reviewed before an offer is made.

Costs and Compliance for the New Employer

The new employer normally pays the permit and residence fees, the medical test, the Emirates ID and health insurance for the new hire. Fees differ by authority and license type, so budgets should be built from published fee schedules rather than estimates. The employer’s license must also have capacity for an additional visa.

Questions to Settle Before the Offer

The simplest transfers involve an employee whose notice is served, whose cancellation is scheduled and who has no restrictive covenant in their contract. Before signing, the hiring company should confirm all three and check its own visa capacity. Moves between mainland and free zone employers, and any disagreement over end-of-service or notice terms, justify early legal input.

Conclusion

Transferring a visa between UAE companies works when the old permit closes cleanly, contract risks are cleared and the new employer has visa capacity. Companies hiring through free zones such as Meydan Free Zone should confirm the candidate’s contract position and their own visa allocation before the offer letter is signed.