Employer's Authority to Rescind Job Offers in UAE?
In the United Arab Emirates (UAE), navigating job offers and employment contracts requires a keen understanding of the rules and regulations set by the Ministry of Human Resources and Emiratisation (MoHRE). Here's a guide to help you navigate this process.
Firstly, it's essential to note that an offer letter in the UAE should adhere to the format prescribed by MoHRE. If an offer letter deviates from this format, the employer may be requested to issue a new one in the correct format.
Once all documents and fees are submitted, the employment contract is signed between the employer and the prospective employee. It's crucial to verify the authenticity of the offer letter issued by a prospective employer with MoHRE to avoid any potential issues.
The offer letter should outline the terms and conditions of employment, including salary, benefits, job description, and other essential details. Additional terms and conditions in the employment contract can be included if they are advantageous to the employee.
Article 1 of Administrative Resolution No. 38 of 2022 states that electronic forms provided in MoHRE system for work permits, offer letters, and employment contracts should be adopted and implemented. An employer must submit a signed offer letter when applying for a new work permit.
However, it's important to exercise caution when resigning from a current job to accept a new offer. While employees do have rights once an employment contract is effective, such as the right to resign properly and employer obligations to pay wages, the law does not explicitly prevent an employer from rescinding a job offer before the employment contract is signed or started.
If an employer withdraws an offer after a resignation but before starting the new job, the former employee may face gaps in employment and visa status complications. In such cases, consulting a legal advisor experienced in UAE labor law is recommended to explore possible claims or to handle visa/work permit issues.
In the event of an offer letter being rescinded, a civil case may be filed against the prospective employer in a court with jurisdiction in the UAE to determine monetary loss and other damages. However, it's worth noting that the protective mechanisms under UAE labor regulations activate mostly after an employment contract is validly formed and commenced.
For more detailed advice, readers can send questions to news@our website or Legal View, Khaleej Times, PO Box 11243, Dubai.
It's also worth mentioning that without a registered valid employment contract with MoHRE, an employer and an employee may not fall under the purview of MoHRE. This means that without a formal contract, there may be limited protections for employees.
Lastly, it's important to remember that an offer letter in the UAE is considered an agreement but not a contract. This means that until the employment contract is signed and a work permit is issued, the offer is not legally binding.
Ashish Mehta, the founder and Managing Partner of Ashish Mehta & Associates, qualified to practise law in Dubai, the United Kingdom, and India, provides further insights and advice on these matters. More details can be found at www.amalawyers.com.
The guide highlights the importance of adhering to the correct format for offer letters as prescribed by MoHRE in the UAE, which can impact the authenticity of the offer and potentially lead to issues.
In the case where a business rescinds an offer after it has been accepted, there may be serious financial and legal repercussions for the affected party, emphasizing the need for careful consideration and possibly legal advice.
