Khaleej Times, Sun, Mar 24, 2024 | Ramadan 14, 1445
Dubai: Can an employee file a case against company for withdrawing offer letter?
Emirates:
Question: A Dubai-based company has extended an offer letter to me. I
plan to accept it and resign from my current job. However, I have a question.
What happens if my new employer withdraws the offer letter after I resign? I am
concerned about this. Please advise.
Answer: Pursuant to your queries, it is assumed that you have received
an employment offer from a mainland company located in the emirate of Dubai.
Furthermore, it is assumed that you have received the said offer letter in the
format prescribed by the Ministry of Human Resource 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 are applicable.
In the UAE, generally, an employer while recruiting a prospective employee 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 under Article 2(1) of the
Ministerial Decree No. 46 of 2022, which states, “Pursuant to the provisions of
the Decree-Law and its Executive Regulations, an employer who wishes to employ
any employee must abide by the following:
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 worker in the contract than those mentioned in the job
offer; it is also permissible to add Annexes to the contract provided that it
does not conflict with the provisions of the decree-law and its executive
regulations.”
Furthermore, Article 1 of Administrative Resolution No. 38 of 2022 mentions that
an offer letter issued by an employer should be in the format prescribed by the
MoHRE.
An employer while applying for a work permit of an employee needs to submit a
signed offer letter between an employer and a prospective employee. This is in
accordance with Administrative Resolution No. 38 of 2022. Once an employer
submits all documents/ requirements along with the signed offer letter and
payment of relevant fees to MoHRE, an employment contract is signed between an
employer and a prospective employee which will be a legally binding contract
once the same is registered with the MoHRE.
A signed offer letter may be considered as an agreement of mutual understanding
between an employer and its prospective employee. Whereas a signed employment
contract between an employer and its prospective employee is a legally binding
agreement. Therefore, “all contracts are agreements, but all agreements are not
contracts”.
Based on the above, if your prospective employer rescinds the offer letter
issued to you, you may not be able to file a complaint with the MoHRE as in the
records of MoHRE you are not considered as an employee until the employment
contract is registered with MoHRE. However, 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 loss of current employment, monetary loss and
other damages caused to you due to the rescinding of the employment offer letter
issued to you.