UAE: Can a company revoke job offer letter before an employee's joining date?

Question: I have received an offer letter from a Dubai-based company. I plan to resign from my current position shortly, but before putting in my papers, I wanted to get clarity on something. Can a company rescind the offer letter before an employee joins? What are the rules around this?

Answer: Pursuant to your queries, it is assumed that an employer based in the mainland of Dubai has issued you with an offer letter in the format prescribed by the Ministry of Human Resources and Emiratisation (MoHRE). Therefore, the provisions of Ministerial Decree No. 46 of 2022 regarding Work Permits, Job Offers and Employment Contracts Forms and 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 are applicable.

Generally, an employer while recruiting a prospective employee in the UAE needs to issue an offer letter which mentions the terms and conditions of the employment. Thereafter, the same terms and conditions should 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 an employee. This is in accordance with Article 2(1) of the Ministerial Decree No. 46 o 2022.

Under Article 1 of Administrative Resolution No. 38 of 2022, an offer letter issued by an employer should be in the format prescribed by the MoHRE.

An employer at the time of applying for a new work permit of an employee should submit a signed offer letter between the employer and a prospective employee. This is in accordance with the Guidelines to Work Permits, Offer Letters and Employment Contracts Procedures of 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 an employer and a prospective employee.

In the event your prospective employer rescinds the offer letter issued to you, the MoHRE may not accept your complaint as you have not signed an employment contract with your prospective employer and MoHRE has not issued you a work permit. An employer or employee may be considered contractual parties to the employment only if a valid employment contract is registered with MoHRE. Therefore, without having a work permit an employer and an employee may not fall under the purview of MoHRE.

Therefore, in the event of your prospective employer rescinding the offer letter, 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.