In the UAE Labour Law 2025, an offer letter signed between an employer and its prospective employee may be considered as an agreement, but not a contract. the employment relationship begins with key preliminary steps that are often misunderstood by both employers and prospective employees. One common point of confusion arises when an employer rescinds a job offer after it has been accepted but before a formal employment contract is executed. This article examines whether such actions are permissible under the UAE labour law, the difference between an offer letter and an employment contract, and what recourse may be available.
- Offer Letter vs. Employment Contract
In the UAE, a signed offer letter between an employer and a prospective employee constitutes an agreement but does not, on its own, form a legally binding employment contract.
- Agreement (Offer Letter): An informal or preliminary understanding that sets out the terms of employment before formal documentation is completed.
- Contract: A legally enforceable agreement, registered with the Ministry of Human Resources and Emiratisation (MoHRE), that governs the employment relationship. All contracts are agreements, but not all agreements meet the threshold of a contract under UAE law.
The distinction is vital: the protections and enforcement mechanisms available under UAE labour law apply only after an employment contract is duly registered with MoHRE and a work permit is issued.
- Legal Framework and Governing Provisions
The employment onboarding process in the UAE is regulated by a combination of Ministerial Decrees and Administrative Resolutions, notably:
- Ministerial Decree No. 46 of 2022 – Article 2(1) requires that the employment contract conform to the job offer when applying for a work permit. Employers may provide additional benefits beyond those stated in the job offer, as long as they comply with the law and do not disadvantage the employee.
- Administrative Resolution No. 38 of 2022 – Article 1 specifies that MoHRE‑approved electronic forms must be used for offer letters, work permits, and employment contracts.
This means that when applying for a work permit, employers must submit a signed offer letter using the MoHRE’s prescribed template. Only after meeting all requirements, including documentation, fees, and submission of the MoHRE‑approved offer letter, does the employment contract become valid and binding.
- Implications of Cancelling an Offer Letter
If an employer withdraws a job offer before the employment contract is signed and registered, MoHRE is unlikely to treat the matter as falling within its jurisdiction. This is because, without a registered contract and work permit, no formal employer–employee relationship exists under UAE labour law.
That said, an offer letter still has legal significance. Depending on the circumstances, a candidate may have grounds to bring a civil claim for monetary losses or damages in the UAE courts, particularly if the withdrawal caused demonstrable financial harm (e.g., relocation costs, resignation from another job).
- Practical Steps for Candidates
If you receive a job offer in the UAE, you can take the following measures to safeguard your position:
- Verify the Authenticity – Contact MoHRE to confirm that your offer letter is issued using the official template and in compliance with relevant regulations.
- Retain Documentation – Keep signed copies of all correspondence, the offer letter, and any related agreements.
- Act Promptly if Rescinded – If the offer is withdrawn, seek clarification in writing and, if necessary, obtain legal advice on filing a civil claim.
- Negotiate Terms Upfront – Where possible, agree on a start date and ensure the employer commits to swiftly processing your work permit to reduce the risk of rescission.
- Seeking Legal Support
Because remedies for rescinded job offers depend heavily on the facts of each case, candidates are advised to consult:
- The MoHRE for procedural clarity
- A qualified UAE legal practitioner for tailored advice on pursuing compensation through civil litigation
Conclusion
While UAE law requires consistency between the terms of the job offer and the registered employment contract, the enforceability of an offer letter alone is limited. The safest course is to ensure the transition from offer letter to MoHRE‑registered contract is completed as quickly as possible. In cases where an employer withdraws an offer prematurely, civil legal avenues, not labour authority complaints, are the primary remedy available.
At eLegal Consultants, we ensure that employers’ interest is protected and help them avoid UAE employment law unfair practices against their employees. We assist our clients on how to abide to the UAE employment law and the UAE employee termination law. You can reach out to us for a free consultation.
