UAE Changes Its Labor Law: Employment Offers Are Now Binding

In accordance with the amended UAE Labor Law, effective from January 1, 2016, job offers will become binding and integral parts of employment contracts. This change to the Labor Law is intended to combat the abuses of expatriate employees who are induced to accept jobs in the UAE with lucrative offers, but upon their arrival to the UAE, are offered employment contracts, which are vastly different from the original offers.

The specific changes to the Labor Law are summarized below:

  • Offer letters to foreign and local workers become legally binding once both parties have signed them.
  • The Ministry of Labour now requires a comprehensive description of the employee’s rights and duties, as well as an outline of the terms of their employment, to be part of any employment offer.
  • Employers must ensure that the future employees have read and understood their employment offers. Job offers must be in a language that the candidate can read and comprehend.
  • Employment offers must be filed with the Ministry of Labour and will be used as the basis for the employment contracts and work permits.
  • The revised law will also apply to the expat employees who are already employed in the UAE. Their residency permits will not be renewed until their employment offers are filed with the Ministry of Labor.

The new Labor Law requires the employers to review their existing recruitment processes and forms in order to ensure that all job offers and employment contracts are in compliance with the new requirements. Many companies are considering recruitment process outsourcing in order to stay compliant with new regulations.

Please contact your service delivery team with any questions regarding the above.