Writing a compliant job offer in the United Arab Emirates
Reviewed by Mellow Editorial Team, HR & payroll content team
A compliant UAE job offer must, at minimum, reflect the terms that will appear in the formal employment contract and align with Federal Decree-Law No. 33 of 2021. If the offer and contract contradict each other, the more favourable terms to the employee generally prevail — so getting the offer right from the start avoids disputes later.
Understand the difference between an offer letter and a contract
In the UAE, the Ministry of Human Resources and Emiratisation (MOHRE) requires employers to register a Standard Employment Contract before the employee can obtain a work permit or residency visa. The offer letter is the document you issue before that formal contract is signed — but it is not a throwaway step.
Courts and tribunals have treated detailed offer letters as binding commitments. If your offer letter states a salary of AED 20,000 and your MOHRE contract later records AED 15,000, you are exposed. Keep the two documents consistent from the outset.
What the offer letter must include
There is no single statutory template for an offer letter, but these elements should always be present:
Job title and grade. State the exact title that will appear in the employment contract. Vague titles create ambiguity around duties and compensation benchmarking.
Compensation breakdown. Specify basic wage and any allowances (housing, transport, other) as separate line items. This matters practically: end-of-service gratuity is calculated on basic wage only, not total package. Under Federal Decree-Law No. 33/2021, expatriate employees accrue 21 days' basic wage per completed year of service for the first five years, and 30 days' basic wage per year after that, capped at two years' total pay. An inflated basic that conflicts with your payroll records will create a gratuity liability you did not plan for.
Employment type. Confirm whether the role is full-time, part-time, temporary, project-based or flexible — all are recognised contract types under the 2021 law.
Start date and probation period. Probation can be up to six months. State the length clearly. During probation, notice periods differ from those that apply once the employee is confirmed.
Annual leave entitlement. Employees are entitled to 30 calendar days of annual leave once they have completed one year of service. You may offer more; you cannot offer less.
Work location. Specify the emirate and, where relevant, whether any remote or hybrid arrangement is agreed.
Salary payment method. All private-sector employers must pay wages through the Wage Protection System (WPS). The offer letter should confirm that salary will be paid via WPS, which aligns candidate expectations with your legal obligation.
Nationality and pension considerations
If you are hiring a UAE or GCC national, note that they are enrolled in the General Pension and Social Security Authority (GPSSA) scheme, with both employee and employer contributions required. This affects the true cost of employment compared with hiring an expatriate, who is not enrolled in GPSSA. Your offer letter does not need to detail contribution rates, but the candidate should be aware they will be enrolled and that their net take-home will reflect their employee contribution.
There is no personal income tax on salaries in the UAE, so no tax withholding is required for either group.
Language, signing and retention
Offer letters are typically issued in English, Arabic, or both. If there is any ambiguity between language versions, Arabic generally prevails in UAE courts. For roles where the candidate is not an Arabic speaker, consider having a bilingual letter or at least having the Arabic version reviewed by a qualified translator before issue.
Get the offer letter countersigned by the candidate before you begin any visa or permit processing. This creates a clear record of agreed terms. Store a signed copy in the employee's personnel file alongside the MOHRE contract — if a dispute arises at end of service, you will want both documents to tell the same story.
Common mistakes to avoid
Conditional language without clear conditions. Phrases like "subject to satisfactory completion of background checks" are fine if you specify what happens and when — but leaving conditions open-ended creates uncertainty about when the offer is binding.
Omitting the probation notice period. The UAE Labour Law allows either party to terminate during probation with 14 days' notice (for resignation to join another UAE employer, 30 days). If your offer is silent on this, candidates may assume standard post-probation notice applies.
Quoting a gross salary without clarifying allowances. Candidates comparing offers across the region will assume "salary" means total cash package unless you specify otherwise. A clear breakdown prevents a poor start to the employment relationship.
Issuing the offer in a chat message. WhatsApp offers are common in smaller businesses but they are difficult to enforce consistently and easy to misquote. Use a formal document, even a simple PDF, for every hire.
Once the offer is signed and consistent with the MOHRE contract you intend to register, you have a solid foundation for how Mellow runs payroll across six countries and onboarding the employee compliantly from day one.
---
Run HR and payroll in UAE with Mellow
Mellow brings HR, payroll and 12 AI agents into one platform — built to handle UAE properly, with payroll included, from £4 per employee per month. The AI agents don't just answer questions; they generate contracts, run cost estimates and draft letters for you.
[Start a free trial →](/register)