Offer Letter & Employment Contract - The Legal Importance in the U.A.E

 
While a Dubai-based company's offer letter holds weight, its legal enforceability differs from a formal employment contract. Here's a breakdown of the situation and some legal views:

Offer Letter vs. Employment Contract:

• An offer letter outlines the proposed terms of employment, including salary, job title, benefits, etc.
• An employment contract is a legally binding agreement signed by both parties after accepting the offer.

Understanding the Legal Landscape:

• Offer Letter vs. Employment Contract: An offer letter in Dubai holds some weight, but it might not be enough for the Ministry of Human Resources and Emiratization (MoHRE) to intervene. MoHRE typically deals with disputes arising from registered employment contracts, not just offer letters.
• Potential for Legal Action: If you've signed the offer letter and resigned from your current job due to their offer, you might have grounds for a civil case against the company for breach of contract. However, you'd need to prove damages (like lost income).

Legality of Offer Revocation:

• UAE courts generally view offer letters as a form of mutual understanding, not a fully enforceable contract.
• However, if you've signed the offer letter and resigned from your current job based on its terms, the employer's withdrawal could be considered a breach [UAE job offer withdrawal].

Possible Consequences:

• You might have grounds for a civil lawsuit against the company for breaching the offer, particularly if you can prove financial losses due to resigning (e.g., relocation expenses).
• The Ministry of Human Resources and Emiratization (MoHRE) might not get involved unless a formal employment contract exists.

Protecting Yourself:

1. Review the Offer Letter: Look for clauses regarding offer revocation or contingencies.
2. Open Communication: Discuss your concerns with the employer before resigning. They might offer reassurance or a compromise.
3. Prioritize the Contract: Ideally, wait for the formal employment contract and work permit initiation before resigning.

Seeking Further Guidance:

Consulting a lawyer specializing in UAE labor law is highly recommended. They can analyze your specific situation, and the offer letter's details, and provide tailored legal advice.

Remember: While the legal enforceability of an offer letter is limited, it's still a significant document outlining your prospective employment. Taking precautions and seeking legal advice can help you navigate this situation effectively.

Labour Contracts and UAE Labour Law

The UAE regulates employment relationships through Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector (the "UAE Labour Law"). This law outlines the rights and obligations of both employers and employees.

Labour Contracts:

• A labour contract is a formal agreement between an employer and employee outlining the terms and conditions of employment.
• The UAE Labour Law doesn't mandate a specific format for contracts, but they should adhere to the law's provisions.
• Key elements a labour contract should typically include:
• Job title and duties
• Salary and benefits
• Working hours and leave entitlements
• Probation period (if applicable)
• Termination clauses

Relevant Sections of the UAE Labour Law:

Several sections of the UAE Labour Law are particularly relevant to labour contracts:

• Chapter Two: Employment Contract: Articles 8 through 12 deal with various aspects of employment contracts, including types of contracts, probation periods, non-competition clauses, and outsourcing.
• Chapter Three: Wages and Allowances: Articles 22 through 27 address salary determination and payment, minimum wage requirements, and deductions permitted from employee salaries.
• Chapter Four: Working Hours and Leave: Articles 17 through 33 specify working hours, rest periods, holidays, and various types of leave (annual, sick, maternity, etc.).
• Chapter Five: Termination of Employment Contract: Articles 42 through 49 explain the grounds and procedures for terminating employment contracts by both employers and employees, including notice periods and end-of-service gratuity.

Finding the Law:

• You can find the full text of the UAE Labour Law (Federal Decree-Law No. 33 of 2021) on the Ministry of Human Resources and Emiratization (MoHRE) website: https://www.mohre.gov.ae/