In the UAE, many employees assume that a signed job offer letter guarantees employment. However, under UAE labour law, an offer letter is not the same as a registered labour contract. While it reflects the employer’s intention to hire, it may not always be legally binding – meaning companies can, in certain situations, withdraw an offer even after a candidate has resigned from their previous job.
This distinction has left some workers unprotected, particularly when career decisions are made based solely on an offer letter.
Can an Employer Legally Withdraw an Offer?
Yes – in some cases. If a labour contract has not yet been signed and registered with the Ministry of Human Resources and Emiratisation (MOHRE), employers may withdraw the offer. This can happen due to changes in business conditions, internal restructuring, failure to meet visa requirements, or budget constraints.
However, once a labour contract is approved and issued by MOHRE, withdrawing employment without lawful cause may expose the employer to penalties or reimbursement claims.
What Protection Do Employees Have?
While the law allows some flexibility for employers, employees are not without protection. If an employer withdraws an offer in bad faith, or after making firm commitments that caused financial or professional harm, the affected individual may have grounds to file a complaint.
Courts may consider factors such as:
- Written communication confirming job start dates
- Evidence that resignation was based on the offer
- Financial losses incurred due to the withdrawal
- Whether the employer acted negligently or misleadingly
Each case is assessed individually based on evidence and intent.
What to Do If Your Offer Is Withdrawn
If you find yourself in this situation, experts recommend taking the following steps:
- Request written clarification from the employer explaining the withdrawal
- Check whether a labour contract was issued or registered with MOHRE
- File a complaint with MOHRE if you believe the withdrawal was unjustified
- Seek legal advice to assess whether compensation may be claimed
- Document all communication, including emails, messages, and offer terms
Early action can significantly improve your chances of resolving the issue.
Impact on Employees and the Job Market
With job mobility increasing in the UAE, such cases highlight the importance of verifying employment status before resigning. HR experts advise employees to avoid submitting resignation letters until:
- A labour contract is signed
- Entry permits or visas are approved (for overseas hires)
- Start dates are formally confirmed
The situation highlights the need for employer transparency in hiring
Key Takeaway for Job Seekers
An offer letter is a key preliminary step in hiring, but it provides limited legal enforceability compared to a formal, legally binding employment contract. Being aware of this difference is crucial for individuals to make secure career choices and avoid unexpected problems.
As employment practices evolve, awareness of labour law remains essential – ensuring both employers and employees operate within fair and lawful boundaries.
