The Dubai International Financial Centre (DIFC) has introduced greater flexibility to its Employment Residence Permit (ERP) cancellation process. Employers may now cancel an ERP for an employee who has been outside the UAE for less than 180 days, provided they submit a signed and stamped employer declaration confirming that all applicable end-of-service benefits have been settled in accordance with the relevant regulations.
This change removes the previous requirement to wait until an employee has completed a continuous 180-day absence period before initiating the cancellation process, enabling employers to complete immigration formalities more efficiently and support timely employee offboarding.
Previously, DIFC-registered employers were unable to cancel an ERP where an employee had left the UAE and was unable to complete the cancellation process in-country. In such cases, employers were typically required to wait until the employee had remained outside the UAE for 180 days from their last recorded exit date or permit expiry date, whichever occurred first.
The DIFC has announced that employers may now proceed with an ERP cancellation for an employee who is outside the UAE, regardless of the duration of absence, provided they submit a signed and stamped employer declaration confirming that all applicable end-of-service benefits have been settled in accordance with the relevant regulations.
Following submission of the required confirmation letter, the employee’s last recorded date of exit from the UAE will be automatically populated within the cancellation application.
The employee’s involvement is expected to be limited. However, employers should ensure that the employee is aware of any outstanding liabilities or active services linked to their UAE immigration status, including Emirates ID-related matters where applicable, as these may be affected once the cancellation process is completed.
The revised process provides employers with greater flexibility when managing employee departures, particularly where individuals have already relocated outside the UAE and are unable to return to complete immigration formalities. The removal of the 180-day waiting period may also reduce administrative delays, support smoother offboarding, and help employers maintain immigration compliance.
We await further details as to whether this mechanism will extend to other UAE jurisdictions, noting that different rules currently apply across certain Free Zones. For example, the Dubai Development Authority (DDA) adopts a three-month absence threshold, under which ERPs may be cancelled following three months of continuous absence from the UAE.
Employers should ensure they have the required supporting documentation in place before submitting a cancellation request. In particular, the confirmation letter must be signed by an authorized company signatory, bear the company stamp, and confirm that all applicable end-of-service benefits have been settled in accordance with the relevant regulations.
At Vialto, we support organizations in understanding evolving UAE immigration processes and assessing the practical impact of regulatory changes on their workforce and mobility arrangements. Our support includes:
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Anir Chatterji
EMEA Immigration Partner
Rekha Simpson
Director, Middle East Immigration
Nasrine Abdi
Manager, Middle East Immigration
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