UAE Jobs: Can An Employee Take Company To Court For Withdrawing Offer Letter?

(MENAFN- Khaleej Times)

Question: I work in a mainland company in Dubai. I was offered a job by a private company, and I received an offer letter also. Then I resigned from my current job. After I completed my one-month notice period, the new company told me that they're withdrawing the offer letter, citing restructuring of the company's operations. Now, my previous employer is asking me to cancel the visa. I am jobless now. Can a company withdraw the job offer letter, and can I take the company to court and seek compensation for withdrawing the offer letter? Please guide me.

Answer: Pursuant to your queries as you have received a job offer from an employer based in the mainland of Dubai, the provisions of the ministerial decree and the administrative resolution issued by Ministry of Human Resources and Emiratisation are applicable.

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

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Generally, an employer while recruiting a prospective employee in the UAE needs to issue an offer letter which should mentions the terms and conditions of the employment. Thereafter, the same terms and conditions should be mentioned in the employment contract of a prospective employee, and both the parties may consider including additional terms and conditions only if such additional terms and conditions are advantageous to an 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 annexure to the contract provided that it does not conflict with the provisions of the decree-law and its executive regulations."

Further, an offer letter issued by an employer 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 an employer and a 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 documents/requirements along with the signed offer letter and payment of relevant MOHRE fees, the employment contract is signed between an employer and a prospective employee.

Based on the aforementioned provisions of law, as your prospective employer has withdrawn the offer letter issued to you, you may consider filing a case against prospective employer in the court which has jurisdiction in the UAE to determine the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

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

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: Readers may e-mail their questions to:... or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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