How to Legally Withdraw Job Offers in UAE: Employer Guide 2025
Complete employer guide to legally withdrawing UAE job offers. Learn conditional clauses, timing strategies, and how to avoid AED 120,000 liability exposure.
Key Takeaways
- All employment contracts in UAE must be limited-term (fixed-term) under the new labour law
- Contracts must be registered with MOHRE within 14 days of signing
- Notice period must be between 30-90 days as specified in the employment contract
Recruitment challenges sometimes require employers to withdraw job offers before employment begins. Market conditions shift, budgets change, internal restructuring occurs, or due diligence reveals concerning information about candidates. However, withdrawing offers incorrectly in the UAE can expose your company to substantial civil liability—even when no employment contract is registered with MOHRE.In
2024, Abu Dhabi courts awarded AED 120,000 and AED 100,000 to employees whose offers were withdrawn after they resigned from previous positions. These precedent-setting rulings established that employers face civil liability under UAE Civil Code when withdrawals occur after candidates take action in reliance on offers—regardless of whether MOHRE registration has occurred.This comprehensive guide
provides employers, HR managers, and recruitment professionals with practical strategies to minimize legal exposure when offer withdrawal becomes necessary. Understanding conditional clauses, timing considerations, proper communication procedures, and settlement strategies can mean the difference between manageable business decisions and costly litigation.Understanding Employer Liability Under UAE
LawFederal Decree-Law No.33 of 2021 governs employment relationships, but critically, it only applies after MOHRE contract registration. Before that registration, job offer disputes fall under UAE Civil Code rather than labour law. This creates a different risk profile that many employers don't fully understand.Civil Code Liability FrameworkWhen you withdraw an offer before MOHRE registration, affected
candidates cannot file MOHRE complaints because no registered employment relationship exists. However, they retain the right to file civil lawsuits based on several Civil Code provisions:Article 282 - Basic Tort Liability"Any harm done to another shall render the actor liable to make good the harm." This establishes fundamental liability when your actions cause demonstrable harm to another party,
including withdrawn job offers that damage career prospects.Article 389 - Damages CalculationCompensation must cover "the amount of harm suffered...together with loss of profit, provided that is a natural result of the harmful act." Courts interpret this broadly to include:Lost wages during unemployment caused by withdrawalSalary differential if replacement position pays lessRelocation expenses incurred
based on the offerOpportunity costs from declined alternative offersMoral damages for reputational harm and emotional distressArticle 246 - Breach of ObligationWhile offer letters aren't employment contracts, courts recognize preliminary agreements create certain obligations, particularly when one party relies on the other's commitments to their detriment.Article 293 - Moral DamagesCourts award compensation
for non-financial harm including "violation of honour, dignity, reputation, social standing"—particularly relevant when withdrawal forces candidates to explain failed oppo...
About This Article
This article provides general information about UAE labour law and employment regulations. The information is based on Federal Decree-Law No. 33 of 2021 and subsequent amendments. For specific legal advice regarding your situation, please consult with a qualified legal professional or contact the Ministry of Human Resources and Emiratisation (MOHRE).