Employment

    UAE Employment Offer Letters: What to Check Before You Sign

    Apr 7, 20256 min read

    Most UAE employees treat the offer letter as a formality and the MOHRE contract as the real document. That's backwards. The offer letter often contains terms — bonuses, allowances, post-termination restrictions — that don't appear on the standard MOHRE form, and it's enforceable. Here is what to check before you sign.

    Probation and notice

    Probation in the UAE is up to six months by federal labour law. During probation, both sides have 14 days' notice. After probation, notice is whatever the contract says — typically 30 days, sometimes 60 or 90.

    Watch for asymmetric notice clauses (employee gives 90 days, employer gives 30). These are common but, depending on the framing, may not be enforceable. If you see asymmetry, push back.

    End-of-service gratuity

    End-of-service gratuity is a federal entitlement (Federal Decree-Law No. 33 of 2021): 21 days' basic pay per year for the first five years, 30 days' basic pay per year thereafter, capped at two years' total.

    The trick is the word "basic". If your offer letter splits compensation into a small basic plus large allowances (housing, transport, communication), your gratuity is calculated on the basic only. Negotiate the basic figure — it's the figure that matters for your end-of-service.

    Bonus, commission, and clawback

    Bonuses and commissions are contract terms, not statutory entitlements. Read carefully whether bonuses are discretionary or formulaic, when they vest (often at year-end, conditional on still being employed), and whether there are clawback provisions if you leave within a certain period.

    Non-compete and non-solicit

    Federal Decree-Law No. 33 of 2021 introduced specific limits on non-compete clauses: maximum two years, must be limited in geography and scope, and only enforceable to protect a legitimate business interest. Pre-2022 contracts may have broader clauses that are no longer enforceable; post-2022 contracts must comply.

    Non-solicit (don't poach colleagues or clients) is generally narrower and more often enforceable. Both clauses are negotiable at offer-letter stage and almost impossible to renegotiate later.

    Repatriation and deductions

    Some offer letters allow the employer to deduct visa costs, training costs, or relocation allowances from the final settlement if you leave within a defined period. These are enforceable in principle, but the conditions and amounts must be reasonable. Read them.

    An offer letter is a contract. The day to negotiate is the day before you sign — not the day you decide to resign. Spend an hour on it.

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