Visa Cancellation & Employee Offboarding
Overview
Visa cancellation is the process of formally ending an employee's residency in the UAE. It must be done when an employee leaves the company, whether through resignation, termination, or contract completion.
When Visa Cancellation is Required
Employee resigns. Employee is terminated. Employment contract expires (and not renewed). Employee is dismissed for cause. Employee leaves the country permanently. Company closes or is liquidated.
Visa Cancellation Process
Step 1: Termination/Resignation
- Employee submits resignation (with notice) OR employer issues termination letter.
- Notice period served (30-90 days).
- During notice period, employee continues to work and receive salary.
- End-of-service gratuity calculated.
Step 2: Labour Contract Cancellation
- Submit labour contract cancellation to MoHRE.
- Provide: employment contract, termination/resignation letter, employee passport copy, company trade license.
- MoHRE cancels the labour contract.
- Work permit is cancelled.
- Processing time: 1-3 business days.
Step 3: Visa Cancellation Application
- Submit visa cancellation to GDRFA (Dubai) or ICP (federal).
- Provide: cancelled work permit (from MoHRE), employee passport, visa page, Emirates ID.
- Pay cancellation fees.
- Processing time: 1-5 business days.
Step 4: Emirates ID Cancellation
- Submit Emirates ID cancellation to ICP.
- Provide: passport copy, visa cancellation proof, Emirates ID card.
- Emirates ID is cancelled.
- Processing time: 1-2 business days.
Step 5: Final Settlement
- Pay end-of-service gratuity.
- Encash unused annual leave.
- Pay any outstanding salary.
- Deduct any owed amounts (loans, advances).
- Employee signs final settlement acknowledgment.
- Must be completed within 14 days of end of service.
Step 6: Repatriation (if applicable)
- Employer provides repatriation ticket to home country (for employees recruited from abroad).
- Employee departs the UAE.
- Or employee transfers to a new employer.
Visa Cancellation Fees
GDRFA (Dubai): AED 110-230. ICP (federal): AED 150-250. Emirates ID cancellation: AED 70. Typing center fees: AED 70-100. Total: AED 400-650.
Grace Period After Cancellation
After visa cancellation, the employee has 30 days to: Leave the UAE. Transfer to a new employer (status change). Change visa type (e.g., to tourist visa). If the employee overstays the 30-day grace period: AED 25/day fine for first day, AED 50/day for subsequent days.
Status Change (Transfer to New Employer)
If the employee is staying in the UAE with a new employer: New employer applies for work permit (MoHRE). New employer applies for status change (GDRFA/ICP). Employee does not need to exit the UAE. Status change fees apply. Processing time: 5-10 business days.
Employee Offboarding Checklist
HR/PRO Tasks:
- Receive resignation/termination letter.
- Calculate notice period.
- Calculate end-of-service gratuity.
- Calculate unused leave encashment.
- Prepare final settlement.
- Cancel labour contract (MoHRE).
- Cancel visa (GDRFA/ICP).
- Cancel Emirates ID (ICP).
- Cancel health insurance.
- Recover company assets (laptop, phone, ID card, etc.).
- Update company records.
- Clear access (office, systems, email).
- Provide experience letter (if requested).
- Process final payment.
- Obtain employee signature on final settlement.
Employee Tasks:
- Serve notice period.
- Handover work and documents.
- Return company assets.
- Clear any outstanding dues.
- Sign final settlement.
- Collect cancellation documents.
- Arrange departure or transfer.
Cancellation Documentation
Cancellation application form. Employee passport (original). Visa page. Emirates ID. Labour contract cancellation certificate. Termination/resignation letter. Final settlement document. Company trade license and establishment card.
Common Cancellation Issues
Employee Refuses to Sign: Employer can proceed with cancellation. Document the refusal. MoHRE can assist. Final settlement may be held.
Employee Absconds: File absconding report. MoHRE processes absconding case. Visa is cancelled automatically. One-year ban imposed.
Company Delays Cancellation: Employee can file a complaint with MoHRE. Employer may face penalties. Employee may be stranded.
Visa Already Expired: Must process cancellation anyway. May face additional fines. Employee may need to exit and re-enter.
PRO's Role in Offboarding
Ensure timely visa cancellation. Prepare all documentation. Coordinate with MoHRE, GDRFA, ICP. Calculate final settlement accurately. Process payments on time. Recover company assets. Update company records. Maintain professional conduct. Assist employee with transition. Keep records of all cancellations.
Best Practices
Start cancellation process promptly. Communicate clearly with the employee. Ensure all dues are paid. Maintain proper documentation. Follow legal requirements. Process within timelines. Keep records for 7 years. Handle sensitive situations professionally.