Table of Contents
Frequently Asked Questions
Can an employee start working for a new company before the old visa is cancelled?
No. The employee's existing work permit ties them to the current employer, so the old permit must be closed before the new employer's permit takes effect. Starting early exposes both the employee and the new company to compliance risk. The safest approach is to align the start date with the cancellation date.
Who pays for the new visa when an employee changes employers in the UAE?
The new employer normally carries the permit, residence visa, medical fitness test, Emirates ID and health insurance costs. These are part of its sponsorship obligations. Fees differ by authority and license type, so budget from the published fee schedule of the relevant authority.
Does an employee need to leave the UAE to switch employers?
No. An employee who already holds a residence visa can change employers while remaining in the country. The old employer cancels the existing permit and residence, and the new employer issues a fresh permit and visa. Departure is not part of the standard process.
What happens to a residence visa when the old employer cancels the work permit?
Cancellation ends the employee's sponsorship with that employer, and the residence tied to it is closed. The employee then relies on the new employer to issue a fresh permit and residence visa. Keep the cancellation confirmation, because the new employer needs it for its application.
Can an employee move from a mainland company to a free zone company?
Yes. The mainland employer cancels the permit through its own authorities, and the free zone company issues a new permit and residence through its free zone authority. Each side controls its own process, so the cancellation must be completed before issuance. A Meydan Free Zone company can onboard such a hire through mResidency, part of Meydan Plus (mPlus), which covers residency visas, the medical fitness test, Emirates ID and medical insurance.
Does a non-compete clause stop an employee from changing jobs in the UAE?
Not automatically. A non-compete clause restricts the employee only if it is reasonable in scope and duration, and enforceability depends on the contract and the circumstances. A hiring company should review the clause before issuing an offer, particularly when recruiting from a direct competitor. Legal advice helps where the terms are disputed.
Which documents does a new employer need to issue a work permit for a transferred employee?
The new employer typically needs the signed employment contract, the cancellation confirmation from the previous employer, and a valid license with visa capacity. The employee also provides their passport, Emirates ID and a medical fitness test result. Exact requirements depend on whether the employer is on the mainland or in a free zone.
How can an employee check the status of a visa after changing employers?
The employee can track the application through the official portal of the authority that processes it, using the passport number or application details. Once the new residence visa is issued, the Emirates ID update follows. Record the new visa and Emirates ID expiry dates for HR files.
Topic Summary
What Transferring a Visa Between UAE Companies Means
Transferring a visa from one company to another in the UAE means the old employer cancels or releases the employee's work permit and residence, and the new employer issues a fresh permit and residence visa. The visa itself isn't handed over. Each employer holds its own sponsorship file.
Steps for Transferring a Visa From One Company to Another in the UAE
The order is fixed: agree terms, cancel the old permit, collect confirmation, then issue the new permit and residence. The employee finishes the medical test and Emirates ID update.
Contract, Notice and Non-Compete Risks Before You Hire
A transfer can fail on contract terms, not paperwork. Notice, probation and non-compete clauses decide whether the employee is free to start. Ignoring them risks a delayed start or a claim from the former employer.
Cost and Compliance Mechanics for the New Employer
The new employer carries permit and residence fees, medical testing, Emirates ID and health insurance. Fees differ by authority and license type. Treat sponsorship as a recurring cost tied to each visa's validity.
How a Meydan Free Zone Company Receives a Transferred Employee
Meydan Plus (mPlus) brings together Meydan Free Zone’s business support offerings, one of which is mResidency. A Meydan Free Zone company onboards a resident employee through it, covering residency visas, the medical fitness test, Emirates ID and medical insurance. The former employer must still close the previous permit first.
Choosing the Right Path Before Transferring a Visa
Decide by employer type, contract position and timing. A resident with notice served and a clean cancellation is the simplest case. Resolve any non-compete or quota gap first, because it decides whether the visa can issue.
Transferring an Employee Between UAE Companies
For a free zone founder in Dubai, hiring someone already resident looks simpler than recruiting from abroad. Many assume the employee just hands their visa to the new company. They don't. The old permit closes and the new employer issues its own. This guide is for founders planning a hire, and it explains how transferring a visa from one company to another in the UAE works, so you can plan the hire with fewer surprises.
What Transferring a Visa Between UAE Companies Means
Transferring a visa from one company to another in the UAE means the old employer cancels or releases the employee's work permit and residence, and the new employer issues a fresh permit and residence visa. The visa itself isn't handed over. Each employer holds its own sponsorship file.
Why a Visa Cannot Simply Be Handed Over
Residency is tied to the sponsoring employer's license and establishment file. Private-sector employment is governed by Federal Decree-Law No. 33 of 2021, and the permit sits inside that employer relationship. Say a Dubai trading company hires a sales manager sponsored by another firm. The manager's old permit must close before the new one takes effect.
Transfer, Cancellation and New Visa Compared
In practice, the new employer applies for a fresh permit. This differs from a first-time entry visa because the employee is already in the country. Take an employee in Dubai on a 2-year residence visa changing employers without leaving: no exit is needed, but the cancellation must be completed first. For the cancellation side, see this guide to employment visa cancellation in the UAE.
Who Processes the Transfer by Employer Type
| Feature | Mainland Employer | Meydan Free Zone Company |
|---|---|---|
| Work permit authority | MOHRE issues the permit | Meydan Free Zone processes it through its own channel |
| Residence visa processing | Immigration authority stamps the visa | Handled through mResidency, part of Meydan Plus (mPlus) |
| Cancellation of previous permit | Old employer cancels with MOHRE | Old permit still closed by the former employer first |
| Medical test and Emirates ID | Arranged by the employer or employee | Covered by mResidency, with medical insurance |
| Visa allocation basis | Tied to the establishment file and license | Up to six visa allocations per license |
Who Handles the Transfer
Who handles a visa change from one company to another depends on each employer’s license. Mainland employers use MOHRE and immigration. Free zone companies usually use their own authority. A cross-system move involves both.
Mainland Employer to Mainland Employer
MOHRE issues and cancels permits for mainland private-sector employers. Immigration handles residence stamping and the Emirates ID update. Both employers need active establishment files. A Dubai logistics firm recruiting a coordinator from a competitor follows this route.
Moving Between Mainland and Free Zone
Each side controls its own permits. Cancellation on one side must finish before issuance on the other. A mainland employee joining a Meydan Free Zone start-up deals with both systems.
Free Zone to Free Zone Moves
Each free zone authority runs its own cancellation and issuance. The new employer needs a valid license with visa eligibility. A consultant leaving one free zone employer for a Meydan Free Zone company follows this principle.
Steps for Transferring a Visa From One Company to Another in the UAE
The order is fixed: agree terms, cancel the old permit, collect confirmation, then issue the new permit and residence. The employee finishes the medical test and Emirates ID update.
Step 1: Agree Terms and Notice With the Current Employer
- Review notice, probation and non-compete terms.
- Settle end-of-service dues in writing.
- Confirm the cancellation date.
- Check probation rules if still in probation.
Step 2: Cancel the Existing Work Permit and Residence
- The current employer files the cancellation.
- Keep the confirmation for the new file.
- Cancellation affects the legal stay period.
Step 3: Issue the New Work Permit and Residence Visa
- The new employer submits the permit declaration with the signed contract.
- Residence issuance follows permit approval.
- Check status on the official portal.
Step 4: Complete Medical, Emirates ID and Insurance
- Medical fitness test and biometrics.
- Health insurance under the new employer.
- Record new visa and ID expiry dates.
Contract, Notice and Non-Compete Risks Before You Hire
A transfer can fail on contract terms, not paperwork. Notice, probation and non-compete clauses decide whether the employee is free to start. Ignoring them risks a delayed start or a claim from the former employer.
Notice Periods and Probation Rules
Check the notice requirement in the current contract. Probation status changes what the employee owes the old employer. Say a founder sets the start date to match a 30-day notice period in the existing contract. That keeps the cancellation date and start date aligned.
Non-Compete Clauses and Competing Employers
Non-compete terms must be reasonable in scope and duration. Review the clause before issuing an offer. A trading company hiring a buyer from a direct competitor should do this first. Read more on non-compete clauses in the UAE, and use a legal adviser to assess enforceability.
Cost and Compliance Mechanics for the New Employer
The new employer carries permit and residence fees, medical testing, Emirates ID and health insurance. Fees differ by authority and license type. Treat sponsorship as a recurring cost tied to each visa's validity.
Official Fees Versus Estimates
Budget from the authority’s published fee schedule. Separate official charges from typing-centre charges. Indicative prices aren't guaranteed costs.
Quota, Insurance and Payroll Compliance
- Your license must allow the extra visa; a Meydan Free Zone license allows up to six visa allocations.
- Health insurance must cover the new resident.
- Pay salaries through compliant payroll systems.
How a Meydan Free Zone Company Receives a Transferred Employee
Meydan Plus (mPlus) brings together Meydan Free Zone’s business support offerings, one of which is mResidency. A Meydan Free Zone company onboards a resident employee through it, covering residency visas, the medical fitness test, Emirates ID and medical insurance. The former employer must still close the previous permit first.
What mResidency Covers for the Hire
- Residency visas and the medical fitness test.
- Emirates ID and medical insurance.
- Dependant visas and return permits for family.
A Meydan Free Zone consultancy hiring a marketing specialist sponsored elsewhere in Dubai uses this route. See also employee visas and sponsorship in Dubai.
Onboard your new hire through mResidency, part of Meydan Plus (mPlus).
Setup Order for a Founder Adding Staff
Get the business license first, then visa allocation, then onboarding. Use the Setup Cost Calculator to frame visa running costs. Payroll and bookkeeping are available through mAccounting, part of Meydan Plus (mPlus). A founder planning two hires in year one should check visa costs before hiring.
Free Business Setup Cost Calculator
Calculate NowChoosing the Right Path Before Transferring a Visa
Decide by employer type, contract position and timing. A resident with notice served and a clean cancellation is the simplest case. Resolve any non-compete or quota gap first, because it decides whether the visa can issue.
Questions to Settle Before the Offer
- Is notice served and cancellation scheduled?
- Does the new license have visa capacity?
- Is there a restrictive covenant?
When to Involve a Legal Adviser
Bring in legal support for disputed end-of-service or notice terms. Cross-jurisdiction moves between mainland and free zone also justify it.
Conclusion
Transferring a visa from one company to another in the UAE works when the old permit closes, contract risks clear and the new license has visa capacity. Confirm the employee's contract position and your visa capacity, then plan permit and residence steps before the offer is signed.
