UAE jobs: Can an employee take company to court for withdrawing offer letter?

A significant employment dilemma has emerged in the United Arab Emirates regarding the legal status of job offer letters and employee protections when offers are rescinded. This complex situation involves a Dubai mainland company worker who faced severe professional consequences after a prospective employer withdrew an employment offer following his resignation from his previous position.

The case involves an employee who received a formal job offer from a private company, subsequently resigned from his current employment, completed his mandatory one-month notice period, and then discovered the new employer had withdrawn the offer citing organizational restructuring. This left the individual without employment and facing visa cancellation procedures.

Under UAE legal framework, specifically Ministerial Decree No. 46 of 2022 and Administrative Resolution No. 38 of 2022, offer letters occupy a unique position in employment law. While these documents represent formal agreements between employers and prospective employees, they do not constitute legally binding contracts in the traditional sense. The distinction is critical: all contracts are agreements, but not all agreements qualify as legally enforceable contracts.

The regulatory environment mandates that employers must utilize standardized electronic forms provided by the Ministry of Human Resources and Emiratisation (MOHRE) for all offer letters and employment contracts. These documents must clearly outline employment terms and conditions, with provisions allowing additional benefits for employees beyond those specified in the original offer.

Legal experts indicate that affected individuals may pursue litigation through appropriate UAE judicial channels to seek compensation for financial losses and damages resulting from unilateral rescission of employment offers. The pathway involves demonstrating measurable economic harm directly attributable to the withdrawn offer, including lost wages and relocation expenses.

Professionals facing similar circumstances are advised to seek immediate counsel from MOHRE or qualified legal practitioners specializing in UAE employment law to evaluate their specific situation and determine the most appropriate course of action.