Navigating Job Offer Changes in UAE

Job Offer Withdrawal in UAE: What Can a Job Seeker Do?

In the United Arab Emirates, more and more employees are faced with the question of whether they can feel secure after accepting a job offer. What happens if the employer changes their mind after confirmation? How legally binding is a signed offer if the official employment contract has not yet been finalized? In the following sections, we explore this issue in detail.

The Difference Between an Offer Letter and an Employment Contract

UAE labor regulations clearly distinguish between an offer letter and an employment contract. While the offer letter can be regarded as an agreement, the employment contract is a legal document that can be executed and is legally binding under applicable laws.

The offer letter is a crucial step in the hiring process, summarizing the terms of employment: position, salary, working hours, benefits, etc. However, until the official employment contract is signed and the work permit is issued, the two parties are not deemed to be in a contractual relationship from the perspective of the Ministry of Human Resources and Emiratisation (MoHRE).

When Does Employment Become Official?

Under Ministerial Decree No. 46 of 2022, when applying for a work permit, the employer must use a standard contract that aligns with the previously issued offer letter. The contract may include terms more favorable to the employee, but it cannot contradict applicable regulations and their enforcement rules.

Additionally, Administrative Resolution No. 38 requires the use of electronic forms available in the MoHRE system for work permits, offer letters, and employment contracts. This ensures legal clarity and traceability.

What Happens If an Employer Withdraws the Offer?

If an employer withdraws their offer after the offer letter is signed but before the employment contract is signed and the work permit is issued, the MoHRE may not initiate proceedings on the matter. In such cases, the employment relationship has not officially come into being.

The offer letter does not necessarily constitute a legally enforceable contract—particularly if it was not prepared in the format prescribed by MoHRE. Therefore, it is important for job seekers to verify the authenticity of the issued offer letter and request it to be reissued in an official format.

Legal Remedies

If the employer withdraws the offer and it causes financial or other damages to the job seeker—such as quitting a previous job or beginning to relocate—a civil lawsuit may be filed in the relevant court. The court can examine the content of the offer letter and the circumstances and decide on compensation.

However, this can be a lengthy and costly procedure, so it is advisable to seek legal advice either directly from MoHRE or from a legal expert.

What Should Job Seekers Consider?

1. Always verify the format and content of the offer letter—it should comply with MoHRE regulations.

2. Do not resign until you have a signed employment contract and work permit.

3. Request official confirmation of the offer acceptance.

4. Keep written records of all communication with the employer.

5. Consult with a legal advisor if you feel you suffered damages due to the withdrawal.

Summary

An offer letter is an important step in securing a new job, but in the UAE, it does not automatically provide legal protection for the job seeker. The employment relationship only becomes legally binding when the employment contract is signed and the MoHRE issues the work permit. Therefore, careful consideration is necessary, especially if one plans to resign from their current job due to a new opportunity.

(The article is based on Article 2(1) of the Ministerial Decree No. 46 of 2022.)