UAE Jobs Law Explained: Can Employers Legally Withdraw a Signed Offer Letter After an Employee Resigns?

Accepting a new job is often a major life decision. Many employees resign from their existing roles, complete notice periods, and make personal and financial plans based on a signed job offer. But what happens if a UAE employer withdraws an offer letter after it has been accepted and signed? Can the employee seek legal recourse under UAE law?

 

Recent regulations issued by the Ministry of Human Resources and Emiratisation (MoHRE) provide clarity on the legal status of offer letters and the responsibilities of employers during the recruitment process.

 

Legal Status of Offer Letters in the UAE

Under UAE labour regulations, a job offer letter is not automatically treated as a full employment contract, even if it has been signed by both parties. Instead, it is generally considered a preliminary agreement that outlines the proposed terms of employment.

In legal terms, while every contract is an agreement, not every agreement qualifies as a contract enforceable by law. An offer letter typically falls into the latter category unless it progresses into a formal employment contract approved through MOHRE.

That said, offer letters are not legally insignificant. UAE labour law places clear obligations on employers regarding how offer letters are issued and used.

MOHRE Rules on Offer Letters and Employment Contracts

The recruitment process in the UAE mainland is governed by Ministerial Decree No. 46 of 2022 regarding Work Permits, Job Offers and Employment Contract Forms, along with Administrative Resolution No. 38 of 2022, which sets out implementation guidelines.

Under these regulations:

• Employers must issue job offer letters using MoHRE-approved electronic formats
• The offer letter must clearly state the proposed terms and conditions of employment
• The employment contract issued later must mirror the offer letter
• Additional benefits may be included in the final contract, but they must be advantageous to the employee
  

Article 2(1) of Ministerial Decree No. 46 of 2022 specifically requires employers to use a standard employment contract that conforms with the job offer submitted for the work permit application.

When Does an Offer Letter Become Legally Relevant?

An employer applying for a work permit is required to submit a signed offer letter to MoHRE as part of the application process. Once the offer letter is approved and the remaining procedural requirements are completed, the formal employment contract is generated and signed.

This process establishes a clear expectation that the employer intends to proceed with the hire. Withdrawing an offer after the employee has relied on it -- such as by resigning from an existing job—can potentially expose the employer to legal liability.

Can an Employer Withdraw an Offer Letter?

While UAE law does not expressly prohibit the withdrawal of an offer letter before a formal employment contract is signed, unilateral withdrawal may still have legal consequences, especially if it causes financial loss or damage to the prospective employee.

Common justifications cited by employers include restructuring, budget changes, or operational realignments. However, these reasons do not automatically absolve the employer from responsibility if the withdrawal results in measurable harm.

Can the Employee Take Legal Action?

An employee whose offer letter has been withdrawn may consider filing a claim before the UAE courts with jurisdiction over the matter. The court may assess whether:

• The offer letter was validly issued and signed
• The employee relied on the offer in good faith
• The withdrawal caused financial loss, unemployment, or other damages
• The employer acted unreasonably or in bad faith
  

If the court is satisfied that the withdrawal caused unjustified harm, it may award compensation for monetary loss and damages, depending on the circumstances of the case.

Practical Steps for Affected Employees

Employees facing such situations should consider:

• Retaining copies of the signed offer letter and related correspondence
• Documenting losses suffered as a result of the withdrawal
• Approaching MoHRE for guidance or dispute resolution
• Seeking advice from a UAE-qualified legal practitioner
  

Conclusion

While a job offer letter in the UAE may not carry the same weight as a signed employment contract, it is still a regulated and legally relevant document. Employers are expected to act responsibly when issuing and withdrawing offers. Where an offer is rescinded after acceptance and reliance, UAE law provides employees with potential avenues for legal remedy.

As labour regulations continue to evolve, both employers and employees are advised to understand their rights and obligations before making or acting on employment offers.

 

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