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UAE: Can employers cancel job offers after issuing them?
In the UAE, an offer letter signed between an employer and its prospective employee may be considered as an agreement but not a contract
- PUBLISHED: Sun 3 Aug 2025, 9:06 AM
Question: I have received a job offer from a mainland company based in Dubai. If I accept the offer and resign from my current position, what would happen if the prospective employer later withdraws the offer? Do I have any legal protection in such a scenario?
Answer: 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 not all agreements are contracts.
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Generally, when recruiting a prospective employee in the UAE, an employer needs to issue an offer letter that outlines the terms and conditions of employment.
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Thereafter, the same terms and conditions need to be mentioned in the employment contract of a prospective employee, and both parties may consider including additional terms and conditions only if such additional terms and conditions are advantageous to the 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, 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."
Furthermore, an offer letter issued by an employer should be in the format prescribed by the Ministry of Human Resources and Emiratisation (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, 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 the employer and the 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 the employer and the prospective employee.
Based on the aforementioned provisions of law, initially, you need to contact the MoHRE and check the authenticity of the offer letter issued by your prospective employer. In the event your prospective employer rescinds the offer letter, the MoHRE may not accept your complaint related to such rescission of offer, as you have not signed an employment contract with your prospective employer and the MoHRE has not issued you a work permit.
An employer or an employee may be considered as contractual parties to the employment only if a valid employment contract is registered with MoHRE, and therefore, without having a work permit, an employer and an employee may not fall under the purview of MoHRE. You may request your prospective employer to issue the offer letter to you in the MoHRE prescribed format if the offer letter which has already been issued to you is not in accordance with the MoHRE prescribed format.
Therefore, in the event your prospective employer rescinds the offer letter issued to you, you may consider filing a civil case against the 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 the rescinding of 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: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.