Dubai Law: Can an Employee Take Legal Action Against a Company for Revoking an Offer Letter?

A person wants to find out what they can do if their new job offer gets taken away after they quit their old job.

Question: I got a job offer from a company in Dubai. I'm planning to accept it and leave my current job. But I'm worried: what if they change their mind and withdraw the offer after I quit? Can you help?

Answer: Based on your situation, assuming you've received an offer from a mainland company in Dubai, and it follows the rules set by the Ministry of Human Resources and Emiratisation (MoHRE), we can refer to Ministerial Decree No. 46 of 2022 and Administrative Resolution No. 38 of 2022 for guidance.

In the UAE, when hiring a new employee, the employer typically provides an offer letter outlining the job's terms and conditions. Later, these same terms and conditions should be included in the employment contract. Any additional terms and conditions beyond this should only be added if they benefit the employee.

This is under Article 2(1) of the Ministerial Decree No. 46 of 2022, which states,

“Pursuant to the provisions of the Decree-Law and its Executive Regulations, an employer who wishes to employ any employee must abide by the following:

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 worker in the contract than those mentioned in the job offer; it is also permissible to add Annexes to the contract provided that it does not conflict with the provisions of the decree-law and its executive regulations.”

Furthermore, Article 1 of Administrative Resolution No. 38 of 2022 mentions that an offer letter issued by an employer should be in the format prescribed by the MoHRE.

An employer while applying for a work permit of an employee needs to submit a signed offer letter between an employer and a prospective employee. This is in accordance with Administrative Resolution No. 38 of 2022. Once an employer submits all documents/ requirements along with the signed offer letter and payment of relevant fees to MoHRE, an employment contract is signed between an employer and a prospective employee which will be a legally binding contract once the same is registered with the MoHRE.

A signed offer letter may be considered as an agreement of mutual understanding between an employer and its prospective employee. Whereas a signed employment contract between an employer and its prospective employee is a legally binding agreement. Therefore,

“all contracts are agreements, but all agreements are not contracts.”

According to the above, if your potential employer cancels the offer letter they gave you, you might not be able to complain to the Ministry of Human Resources and Emiratisation (MoHRE) because they only consider you an employee once your employment contract is registered with them. However, you could think about taking legal action against the employer in a UAE court. This could help you seek compensation for losing your current job, financial losses, and any other harm caused by the withdrawal of the job offer letter.

News Source: Khaleej Times