March 23, 2026 · ZETUP Team
Visa Cancellation in Dubai: Process, Costs & Requirements [2026]
Visa Cancellation in Dubai — The Complete Process
Answer Capsule: Visa cancellation in Dubai takes 2–5 business days and involves MOHRE labour contract cancellation, GDRFA residence visa cancellation, and a 30-day grace period for the departing employee to leave the UAE or transfer to a new visa. Employers must pay outstanding salary, end-of-service gratuity, and unused leave balance before or upon cancellation. Cost: approximately AED 500–1,000.
When Visa Cancellation Happens
Employee resignation or termination, company closure, visa transfer to a new employer, and dependent visa holders when the sponsor's visa is cancelled.
Step-by-Step Process
Step 1: MOHRE labour contract cancellation. Employer initiates through the MOHRE portal. Both parties must agree on the cancellation terms.
Step 2: Final settlement. Employer pays outstanding salary, accrued leave balance, and end-of-service gratuity (if eligible — calculated at 21 days base salary per year for the first 5 years, 30 days per year thereafter).
Step 3: GDRFA residence visa cancellation. Passport stamped with cancellation. This can be processed at GDRFA service centres or through authorised typing centres.
Step 4: 30-day grace period begins. The employee has 30 days to leave the UAE, transfer to a new employer's visa, or change to another visa type.
Employer Obligations
Employers must settle all financial obligations before or upon cancellation: outstanding wages, end-of-service gratuity, unused annual leave payment, and repatriation costs (air ticket to the employee's home country).
What Happens After Cancellation
Emirates ID is automatically cancelled when the residence visa is cancelled. Bank accounts remain active for 30 days but will eventually be frozen. The employee should close bank accounts, cancel utility connections, and settle any outstanding financial obligations within the grace period.
ZETUP manages the entire cancellation process for PRO retainer clients — MOHRE filing, GDRFA processing, and documentation — ensuring compliance with all employer obligations.
Frequently Asked Questions
Q: How long is the grace period after cancellation? A: 30 days from the date of visa cancellation.
Q: Can an employee transfer to a new company during the grace period? A: Yes. A new employer can sponsor the employee without them leaving the UAE, provided the new work permit is applied for within the grace period.
Q: What is the end-of-service gratuity calculation? A: 21 days of basic salary per year for the first 5 years of service, 30 days per year for each year thereafter. Total gratuity is capped at 2 years' total salary.
Q: What happens if an employee absconds without cancellation? A: The employer must file an absconding report with MOHRE. The employee's visa becomes invalid, and they may face travel bans and fines. The employer should process cancellation formally to avoid ongoing liabilities.
Need Help With Your Dubai Business?
Book a free PRO Health Check and get a clear picture of your compliance status.
Book Free Health Check