Employment Visa Cancellation in UAE: Complete Process Explained
January 23, 2026
January 23, 2026
Topic Summary
1. Initiate Employee Exit Formalities
Employers must first complete all internal exit procedures, including clearance of financial dues, return of company assets, and obtaining a no-objection certificate (NOC) from relevant departments before initiating the visa cancellation.
2. Submit Cancellation Request to the Ministry of Human Resources and Emiratisation (MOHRE)
The visa cancellation request is officially lodged through the MOHRE’s online portal or service centers. The employer provides the employee’s details along with the necessary documentation, including the original labor contract and Emirates ID.
3. Return of Residency Permit and Emirates ID
The employee’s residency permit (visa page in the passport) and Emirates ID must be physically surrendered to the immigration authorities as part of the cancellation process before approval is granted.
4. Completion of Medical Insurance and Health Clearance Closure
Employers must ensure that the employee’s health insurance policy linked to the visa is formally canceled, and any mandatory health check reports related to the residency permit are closed in accordance with UAE regulations.
5. Obtain Final Cancellation Confirmation for Trade License and Immigration Record
Upon successful cancellation, employers should secure official confirmation from the immigration department, which is essential to update the company’s trade license records and to prevent penalties or complications in future employment visa applications.
For UAE founders sponsoring employees, employment visa cancellation in the UAE isn’t just an HR task. It’s a responsibility that affects their trade license standing, immigration file, and ability to onboard new talent smoothly. One delayed cancellation can trigger overstay penalties. One misstep can stall rehiring or raise red flags during audits.
Whether you’re managing an employee exit, restructuring a team, or preparing to sponsor new talent under your trade license, visa cancellation is the point where everything either stays orderly or becomes unnecessarily complicated. That’s why founders in ecosystems like Meydan Free Zone find it easier to manage visas end to end. Its 100% digital approach to licensing and residency allows cancellations, new sponsorships, and transitions to be handled efficiently, without operational downtime.
This article breaks down the employment visa cancellation process clearly so, as a founder, you stay fully compliant, protect your business, and remain in control.
Understanding Employment Visa Cancellation in the UAE
Employment visa cancellation in the UAE is the formal process of ending a residency visa sponsored by your company. As the sponsor, this responsibility sits entirely with you.
Once an employment visa is cancelled:
- The employee’s legal residency under your company ends
- Their Emirates ID is invalidated
- Their immigration status moves into a grace period
- Your labour quota is released, allowing future hiring
This process applies when an employee:
- Resigns
- Is terminated
- Completes a fixed-term contract
- Transfers to a new sponsor (another employer, investor structure, spouse, or self-sponsored setup)
Handled correctly, it’s routine. Handled poorly, it creates compliance exposure.
Who Cancels the Employment Visa?
The sponsoring employer initiates the cancellation. An employment visa is legally tied to:
- Your company’s trade license
- Your labour quota
- Your immigration file
Even when an employee requests to leave, the cancellation must be actioned by the sponsor through:
- Ministry of Human Resources and Emiratisation (MOHRE) for labour contract cancellation
- Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) for residency visa cancellation
Employees cannot self-cancel a visa. As a founder, however, you can control timelines, risk, and continuity by understanding how the process works and when to trigger each step.
For founders operating within digital-first ecosystems like Meydan Free Zone, this process is significantly easier to manage. Visa-related actions, including cancellations, are handled 100% digitally through an online portal, reducing documentation, manual follow-ups, and delays.
Mandatory Steps to Cancel an Employment Visa in the UAE
Regardless of where your company is registered, employment visa cancellation in the UAE follows a fixed, authority-driven sequence. These steps are mandatory for all sponsoring employers and must be completed in order.
1. Labour Contract Cancellation (MOHRE)
The sponsoring employer must first cancel the employee’s labour contract with MOHRE. This confirms the end of employment and final settlements, including salary, leave encashment, and gratuity. Both parties must approve the cancellation.
2. Residency Visa Cancellation (ICP)
Once labour cancellation is approved, the employer proceeds to cancel the employee’s residency visa through the ICP. This officially ends the employee’s residency, invalidates the Emirates ID, and triggers the grace period.
3. Labour Quota Update
After visa cancellation, the employee is removed from the sponsor’s active visa count. This updates the labour quota and allows the employer to sponsor a replacement employee if required. For Meydan Free Zone business license holders, visa allocations typically start at six, with the option to add additional visas as needed, making timely cancellations important for keeping hiring flexibility.
These steps apply universally to employment visa cancellation in the UAE. Digital-first ecosystems like Meydan Free Zone help founders manage each stage smoothly by coordinating documentation, submissions, and status tracking across authorities.
How Meydan Free Zone Helps Sponsors Manage Employment Visa Cancellation
Employment visa cancellation in the UAE can be complicated by execution: juggling labour approvals, immigration submissions, and documentation across different systems without anything slipping or stalling.
This is where founders operating within Meydan Free Zone feel the difference. Visa management is handled through a fully digital portal that guides sponsors through each stage of the cancellation process, instead of leaving them to interpret immigration statuses or jump between systems.
Through the Meydan Free Zone portal, founders can:
- Log in and initiate employment visa cancellation requests online
- Choose the correct cancellation route based on where the employee is in the visa journey (inside the UAE, after entry, or before entry)
- Coordinate labour and residency cancellation steps in the right order
- Upload and submit required documents without documentation loops (Resignation/Termination Letter and Final Settlement Letter signed by the employee)
- Review the application details and complete the required employment visa cancellation payment directly through the portal
- Track application status and confirmations in one place as the request moves through the relevant authorities
- Complete the process within a typical processing window of 1–2 business days
- Release labour quota cleanly so rehiring can proceed without delays
Understanding What Happens After an Employment Visa Is Cancelled
Once an employment visa is cancelled, the employee enters an immigration grace period, typically between 30 and 60 days.
From a sponsor’s perspective, this is the handover point:
- Employer responsibility ends once cancellation is completed correctly and on time
- Any overstay penalties apply to the individual, not the sponsor
- Your company’s immigration file remains protected and compliant
This is why timely visa cancellation matters; it clearly defines where employer responsibility ends and prevents compliance exposure.
Emirates ID Status After Employment Visa Cancellation
Once an employment visa is cancelled, the employee’s Emirates ID is automatically invalidated.
What founders should know:
- Emirates ID becomes invalid and cannot be reused or transferred
- All EID-linked access (banking, telecom, leasing, portals) stops after cancellation
- Any new visa requires a fresh Emirates ID issuance
Common Mistakes Founders Make During Visa Cancellation (And How to Avoid Them)
Employment visa cancellation is routine in the UAE, but small missteps can quickly turn it into a compliance issue.
- Delaying visa cancellation after the employee’s last working day
- Cancelling the visa before final salary, leave, or gratuity settlements are completed
- Selecting the wrong cancellation route based on the employee’s visa status
- Submitting incomplete or unsigned documentation
- Assuming the employee can manage immigration steps independently
Final Thoughts
Employment visa cancellation in the UAE isn’t the end of a chapter; it’s a control point. Get it right, and your business keeps moving. Miss a step, and momentum slows where it shouldn’t. In the UAE, founders who scale smoothly are the ones who treat exits with the same discipline as hires: clear sequencing, clean documentation, and zero ambiguity about responsibility.
The UAE’s system is structured for clarity, but execution is what separates calm operators from constant firefighting. Founders working within digital-first ecosystems like Meydan Free Zone benefit from centralised, transparent workflows that make visa exits predictable rather than disruptive.
If you’re sponsoring talent today or planning your next hire tomorrow, take control of the process. Handle visa cancellations cleanly, protect your trade license, and keep your team and growth moving forward with confidence.
FAQs
1. Who is responsible for cancelling an employment visa in the UAE?
The sponsoring employer is always responsible for cancelling an employment visa in the UAE. Employees cannot cancel their own visas. Even if an employee resigns or requests to leave, the sponsor must initiate and complete the cancellation through the relevant labour and immigration authorities.
2. How long does employment visa cancellation take in the UAE?
Once documentation is complete and approvals are in place, employment visa cancellation typically takes 1–2 business days with Meydan Free Zone. Delays usually occur due to incomplete paperwork, pending settlements, or selecting the incorrect cancellation route based on the employee’s visa status. Meydan Free Zone helps offset this by providing expert guidance and 100% digital navigation for the end-to-end visa cancellation process.
3. What happens to the employee after the visa is cancelled?
After cancellation, the employee enters an immigration grace period, usually between 30 and 60 days. During this time, they must either exit the UAE or transition to a new visa. Overstay penalties after cancellation apply to the individual, not the employer.
4. Does cancelling an employment visa affect my labour quota?
Yes. Once the visa is cancelled, the employee is removed from your active sponsorship count, updating your labour quota and allowing you to sponsor a replacement employee. For Meydan Free Zone trade license holders, visa allocations are at six visas, so timely cancellation helps keep hiring flexibility intact.
5. Can employment visa cancellation be managed online?
Yes. In digital-first free zone environments like Meydan Free Zone, sponsors can manage employment visa cancellation through an online portal. This allows founders to coordinate submissions, track status updates, complete payments, and manage quota release without manual follow-ups.
