# Offer of Employment- Is it legally binding?? Help pls!!



## ilen (Jan 16, 2014)

Hi all,

I would very much appreciate your advice/insight on my below issue. I received an offer of employment from a company in the private sector in Dubai a week ago. I signed the offer of employment 4 working days ago and sent the company my passport copies and passport photos. They said they have began the visa process.

I am having second thoughts on joining the company now and would like to know what the consequences would be if I told them I would like to decline the offer now. Just to be clear, I have only signed the Offer of employment and am still abroad so haven't come into Dubai just yet, but they are applying for my entry visa. If I decide to tell them I don't want the job anymore and will not be coming to Dubai, will I face any legal consequences (6 month ban etc) even though I haven't entered Dubai yet?

I have read a few different things online and not sure which one is correct. Apparently, only the labour contract signed once arriving in Dubai is legally binding and the offer of employment is not legally binding?

Help pls!

Thanks


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## londonmandan (Jul 23, 2013)

I was actually going to ask this question as well as my partner has done the same but we are here and she has actually gone in to the office to find that they have failed to declare some clauses regarding wages so is looking to leave.


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## Byja (Mar 3, 2013)

Ok, you haven't signed the LC, so you're ok. However, if you decided not to accept this because of another offer in the UAE from company B, then you might have to wait 60+ days for your entry permit from company A to expire.
Whatever you decide to do, at least be fair to your potential Employer and let them know what your decision is.


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## ilen (Jan 16, 2014)

Thank you for your response. 

I don't have any other offer in the UAE as of now and the only reason I am considering not taking the job despite having signed the offer letter is because of a few clauses in the employment offer letter which I am worried about. I did read these before signing it but was told by the company that this is the norm in dubai and they were in a rush to receive the signed offer of employment.

However, upon doing some research, I've realised that these 2 clauses are not the norm and am afraid that i will be liable later once I sign the LC.

''The employee agrees that after leaving service as a result of termination or resignation, they will not work for a competitor within the UAE for a period of two years for any reason whatsoever pursuant to Article No 127 of the Federal Labor Law (8) for the year 1980, with any business entity that is in competition with the Company.'' 

2 years seems to be very long.

''Should the employee resign or be terminated within the first 12 months of employment, they will be required to repay any recruitment or training costs incurred by the Company through the hiring of the Employee''

From my understanding, I should be liable for any incurred costs by the company only during the 6 month probation period. However, in my contract it says I will be liable for any incurred costs up to the first 12 months which again seems quite long.

Unless of course I am wrong in overthinking these 2 clauses. Have you or anyone experienced any similar clauses?

Thanks!


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## telecompro (Apr 4, 2013)

Shaneli said:


> Thank you for your response.
> 
> I don't have any other offer in the UAE as of now and the only reason I am considering not taking the job despite having signed the offer letter is because of a few clauses in the employment offer letter which I am worried about. I did read these before signing it but was told by the company that this is the norm in dubai and they were in a rush to receive the signed offer of employment.
> 
> ...


Very common my friend in specific sectors


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## ilen (Jan 16, 2014)

Hi Telecompro,

Is it really? The job is for a private sector company...


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## twowheelsgood (Feb 21, 2013)

Yes, its standard for all our contracts, and we are a very large private sector company.

No public sector organisation would worry about 'competitors' because it hasn't got any.

Except in mine, the repayment of relocation expenses lasts two years.


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## londonmandan (Jul 23, 2013)

telecompro said:


> Very common my friend in specific sectors


Mine is 6 months, I also had 6 back in the UK.


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## Byja (Mar 3, 2013)

Shaneli said:


> ''The employee agrees that after leaving service as a result of termination or resignation, they will not work for a competitor within the UAE for a period of two years for any reason whatsoever pursuant to Article No 127 of the Federal Labor Law (8) for the year 1980, with any business entity that is in competition with the Company.''


Yes, the non-copmetition clause was always a problematic one. Unfortunately, here in the UAE I believe the Law is the most senior legal document applicable, so you have to adhere to it. In some countries the non-competition clause is borderline illegal, so the only way to enforce it is by paying the former employee during the non-competition period.
However, I believe that if start working for a company in a freezone, that Labor Law does not apply, so you should be able to avoid this.



> ''Should the employee resign or be terminated within the first 12 months of employment, they will be required to repay any recruitment or training costs incurred by the Company through the hiring of the Employee''


Now this is a proper trap. What if they send you to a bunch of ridiculous trainings like "using the Internet", or "composing an email", all "worth" 1000s of dirhams? I would agree to this clause only if I'm given the option to refuse any such training.

Folks say it's usual here, but I would probably have same concerns over such a Contract, particularly here, where the Employer is always right, and the Employee is always... you guess.


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