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Legal Rights Regarding Withdrawal of Job Offer in the UAE

Question: I am in a tricky situation. I resigned from my current job after receiving and accepting a job offer from another company. However, my new employer is now planning to withdraw the offer letter, according to a contact who interviewed me. He was apologetic but said there was nothing he could do. What are my legal rights in this situation? Can I sue the company? I am currently serving my notice period, as my current employer has accepted my resignation. Can I withdraw my resignation? How does this process work legally?

Answer: Pursuant to your queries, it is assumed that you have received a job offer from an employer incorporated in the mainland of Dubai, hence the provisions of the ministerial decree and the administrative resolution of the UAE employment law are applicable.

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In the UAE, an offer letter signed by an employer and its prospective employee may be considered an agreement, but not a contract. In general, an offer letter may be considered an informal agreement, whereas a contract is enforceable by law. Therefore, all contracts are agreements, but not all agreements are contracts.

Generally, an employer in the UAE must issue an offer letter outlining the terms and conditions of employment when recruiting a prospective employee. Thereafter, the same terms and conditions must be included in the employment contract of a prospective employee, and both parties may consider including additional terms and conditions only if they are advantageous to the employee. This is in accordance with Article 2(1) of the Ministerial Decree No. 46 of 2022 regarding Work Permits, Job Offers and Employment Contracts Forms (the ’Ministerial Decree No.46 of 2022’), which states, “Utilise the approved standard employment contract that conforms with the job offer when requesting the issuance of the work permit. It is permissible to add more benefits to the employee in the contract than those mentioned in the job offer; it is also permissible to add annexures to the contract provided that it does not conflict with the provisions of the decree-law and its executive regulations."

Further, an employer's offer letter should be in the format prescribed by the MOHRE. This is in accordance with Article 1 of Administrative Resolution No. 38 of 2022 Concerning the Guidelines for Implementing Ministerial Resolution No. 46 of 2022 Regarding Work Permits, Offer Letters and Employment Contract Forms (the ‘Administrative Resolution No. 38 of 2022’), which states "In accordance with the guidelines attached herein, electronic forms (e-forms) provided in MOHRE system for work permits, offer letters, and employment contracts shall be adopted and implemented."

An employer, while applying for a new work permit for an employee, should submit a signed offer letter between the employer and the prospective employee. This is in accordance with Guidelines to Work Permits, Offer Letters and Employment Contracts Procedures of the Administrative Resolution No. 38 of 2022. Once an employer submits all other required documents and pays the relevant MOHRE fees, an employment contract is signed between the employer and the prospective employee.

Based on the aforementioned provisions of law, as your prospective employer has withdrawn the offer letter issued to your prospective employer, you may consider filing a civil case against your prospective employer before a court which has jurisdiction in the UAE to determine the matter for the monetary loss and other damages caused to you due to the rescinding of the employment offer letter issued to you.

You may obtain further legal advice from MOHRE or a legal practitioner in the UAE.

Applicable laws:

Ministerial Decree No. 46 of 2022 regarding Work Permits, Job Offers and Employment Contracts Forms
Administrative Resolution No. 38 of 2022 Concerning the Guidelines for Implementing Ministerial Resolution No. 46 of 2022 Regarding Work Permits, Offer Letters and Employment Contract Forms

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.

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