A comprehensive offer letter aligned with Federal Decree-Law No. 33 of 2021 — covering role, AED compensation, allowances, end-of-service gratuity, probation, and confidentiality. Editable in any word processor.
UAE Labour Law became significantly more employer-friendly under Federal Decree-Law No. 33 of 2021, but a poorly drafted offer letter still leads to disputes over probation length, gratuity calculation basis, and notice periods — all of which are tested at MoHRE labour offices and (for free zones) at DIFC / ADGM courts. This template locks down the commercial terms and cross-references the statute that governs the relationship.
Get a properly formatted Microsoft Word (.docx) file with headings, bullets and placeholders already styled. Replace all [SQUARE BRACKETS] with your own details.
OFFER OF EMPLOYMENT
[DATE]
[CANDIDATE NAME]
[ADDRESS]
Dear [CANDIDATE NAME],
We are pleased to offer you employment with [COMPANY NAME] (the "Company") under the following terms, governed by Federal Decree-Law No. 33 of 2021 ("UAE Labour Law"):
1. POSITION
You will serve as [JOB TITLE], reporting to [MANAGER NAME / TITLE]. Your start date will be [START DATE].
2. WORK LOCATION
Your primary place of work is [OFFICE ADDRESS], [EMIRATE]. The Company may, on reasonable notice, change your work location within the UAE.
3. CONTRACT TYPE
This is a [LIMITED / UNLIMITED] contract under UAE Labour Law. [If LIMITED: term of [N] years from the start date.] [If UNLIMITED: open-ended subject to the notice provisions in Section 9.]
4. COMPENSATION
Your gross monthly salary is AED [AMOUNT], structured as follows:
- Basic salary: AED [___]
- Housing allowance: AED [___]
- Transportation allowance: AED [___]
- Other allowances: AED [___]
Annual gross salary: AED [___]
End-of-service gratuity accrues monthly on basic salary, calculated under Article 51 of UAE Labour Law.
5. STATUTORY DEDUCTIONS
The Company complies with Wage Protection System (WPS) requirements. Salary is paid via WPS through the Company's corporate banking partner [BANK NAME] within the MoHRE-mandated timeframe each month.
For UAE National employees, the Company contributes to the General Pension and Social Security Authority (GPSSA) at the prescribed rates.
6. WORKING HOURS
Standard working hours are 8 hours per day, 48 hours per week, in line with UAE Labour Law. During Ramadan, working hours are reduced by 2 hours per day for all employees who observe the fast (per Article 65). Outdoor work is suspended between 12:30 PM and 3:00 PM during the official MoHRE midday-break period (mid-June through mid-September).
7. PROBATION
Your probation period is [SIX MONTHS / SHORTER] from the start date, the maximum permitted under UAE Labour Law. During probation, employment may be terminated by either party with 14 days' written notice (employer) or 30 days' written notice (employee, if returning to home country) per Article 9.
8. LEAVE ENTITLEMENT
- Annual leave: 30 calendar days per year (after 6 months of service), pro-rated until then
- Sick leave: 90 calendar days total per year — first 15 fully paid, next 30 half-paid, balance unpaid (Article 31)
- Maternity leave: 60 days (45 fully paid + 15 half paid) per Article 30
- Paternity leave: 5 working days within 6 months of birth (Article 32)
- Hajj leave: 30 days unpaid, once during the employment relationship (Article 33)
- Bereavement leave: 5 days for spouse, 3 days for parent / child / sibling
- Public holidays as gazetted by the UAE government
9. NOTICE OF TERMINATION (POST-PROBATION)
Either party may terminate this contract with [30 / 60 / 90] days' written notice, or payment in lieu thereof. Termination for grounds set out in Article 44 (gross misconduct) does not require notice.
10. END-OF-SERVICE GRATUITY
On termination after at least one year of continuous service, you are entitled to end-of-service gratuity calculated under Article 51:
- 21 days' basic salary for each of the first 5 years of service
- 30 days' basic salary for each subsequent year
- Subject to the legal maximum of 2 years' total gross salary.
11. CONFIDENTIALITY
You agree to keep confidential all non-public Company information, customer data, and trade secrets, both during and after employment. Breach is grounds for immediate dismissal under Article 44.
12. NON-COMPETE (where applicable)
For [N] months following termination, you agree not to work for a direct competitor in [GEOGRAPHY]. Non-competes under UAE Labour Law are enforceable only if reasonable in scope, duration, and geography (Article 10).
13. GOVERNING LAW
This contract is governed by UAE Labour Law (Federal Decree-Law No. 33 of 2021). Disputes are resolved through the MoHRE labour-dispute process. [If DIFC / ADGM: substitute applicable jurisdiction clause.]
Please sign the duplicate copy of this letter as acceptance and return to HR by [OFFER EXPIRY DATE].
Sincerely,
____________________
[HR HEAD NAME]
[DESIGNATION]
[COMPANY NAME]
ACCEPTED:
Candidate signature: ____________________
Date: ____________________6 months under Federal Decree-Law No. 33 of 2021. The previous law allowed only 6 months as well, but the new law clarified termination notice rules during probation: 14 days from the employer, 30 days from the employee if leaving the country, or 1 month if joining a different UAE employer.
Most new UAE contracts under the 2021 law are limited (fixed term). Limited contracts give clearer end dates, support automatic renewals, and align with how MoHRE registers contracts. Unlimited contracts are rarer post-2022 reform.
Yes, but only if reasonable in scope, duration (typically 6–24 months max), and geography (typically UAE only or specific Emirates). Article 10 of the new law enables enforcement; courts strike down overbroad clauses.
If the employee's first language is Arabic, yes — best practice and often required by MoHRE for contract registration. Many employers issue both English and Arabic versions side-by-side.
UAE offer letters sit at the intersection of multiple regulatory regimes that don't exist together in most jurisdictions. The MoHRE-registered employment contract is the legally binding document, but the offer letter typically establishes additional terms beyond the standard MoHRE contract template — confidentiality, non-compete (under Article 10), restrictive covenants, equity, deferred compensation, expatriate-specific provisions (housing allowances, school fees, repatriation airfare), and benefits packages. Coordinating the offer letter with the eventual MoHRE contract registration requires careful drafting to avoid contradictions. The template here is structured to be MoHRE-compatible while capturing the additional terms employers and employees expect.
Every UAE private-sector employee under federal jurisdiction (i.e., outside DIFC and ADGM) must have their employment contract registered with MoHRE. The registration uses MoHRE's electronic contract system and the contract template is largely standardised. The offer letter typically describes the broader compensation and terms, while the MoHRE-registered contract captures the specific items MoHRE tracks: parties, role, salary, working hours, leave, contract type (limited or unlimited — though limited is now the standard post-2022), notice period, and probation. The offer-letter terms should be consistent with what will ultimately be registered with MoHRE; any deviation creates compliance risk and potential labour-court issues.
Following the February 2022 reforms, limited (fixed-term) contracts became the universal MoHRE-registered standard for new hires, with unlimited contracts effectively retired. Limited contracts run for a defined duration (typically 1-3 years) with auto-renewal language. The 2021 law also abolished the previous gratuity differential between limited and unlimited contracts — under the unified Article 51 calculation, gratuity treatment is identical regardless of contract type and regardless of whether separation is at term end, mid-term by employer, or mid-term by employee. This simplification was pro-employee and removes the historic gratuity-related friction in resignation decisions. The offer letter should specify the contract type (limited) and duration clearly.
The offer letter should reference the Article 51 gratuity calculation: 21 days of basic salary per year for years 1-5, 30 days per year for years 6+, capped at 24 months of total gross salary. Gratuity is calculated on basic salary only — allowances (housing, transport, education) do not count. The basic-vs-allowance split therefore matters significantly: a 50% basic / 50% allowance split delivers half the gratuity that a 100% basic structure would. Employers often split salary into basic plus allowances to manage gratuity exposure, but extreme compression (basic at 10-20% of total) has been challenged in MoHRE proceedings as an attempt to defeat the gratuity entitlement. The template here uses a 60% basic / 40% allowances split as a defensible standard.
Probation under the 2021 law is capped at 6 months. During probation, termination notice is 14 days from the employer; the employee can resign with 30 days notice if leaving the country, or 1 month if joining another UAE employer. After probation, notice periods are typically 30, 60, or 90 days depending on seniority. The offer letter should clearly state probation duration, post-probation notice period, and the Article 44 grounds for summary dismissal (gross misconduct without notice or gratuity). Employees terminated under Article 44 forfeit gratuity, which is a meaningful financial consequence; the article 44 reference protects the employer's ability to invoke it where genuinely warranted.
Article 10 of the 2021 Labour Law enables enforcement of post-employment non-compete clauses, but only where they are reasonable in scope, duration, and geography. UAE courts have repeatedly held that overbroad non-competes are unenforceable. Best practice for non-compete drafting is (1) Limit to specific competitors or sub-industries rather than 'any competitor'. (2) Geographic scope limited to UAE or specific Emirates rather than worldwide. (3) Duration typically 6-24 months maximum. (4) Pair with confidentiality and non-solicitation provisions which are easier to enforce. (5) Apply primarily to senior or sensitive roles where the underlying business interest is genuinely material. The template's reference to a separate restrictive-covenants agreement supports this targeted approach.
Free-zone employees operate under different regulatory regimes. DIFC employees follow DIFC Employment Law No. 2 of 2019 with DEWS replacing Article 51 gratuity; ADGM employees follow ADGM Employment Regulations 2019 with their own qualifying-scheme. Other free zones (DMCC, JAFZA, RAKEZ, etc.) typically follow MoHRE rules but issue their own labour cards through the free-zone authority. The offer letter should clearly identify which entity is the employing entity and which regulatory framework applies. The template here assumes mainland MoHRE-jurisdiction; free-zone employers should adjust accordingly.
Customisation before issuing: (1) Compensation specifics — basic, allowances, target bonus, equity (if offered, with vesting). (2) Reporting line — manager name and title. (3) Start date and onboarding details. (4) Probation duration (typically 3-6 months). (5) Notice period (typically 30-90 days post-probation). (6) Specific allowance components — housing, transport, education, mobile, utility. (7) Ramadan-hour adjustments if relevant to role. (8) Sectoral overlay licences if regulated industry (DHA, DFSA, FSRA). (9) Visa-and-immigration support — Tasheel processing, visa renewal, residency cancellation procedures. (10) Repatriation provisions for non-UAE-Nationals. (11) Family-status benefits — health insurance for spouse/children, education allowances, family relocation support. (12) Arabic translation — required if employee's first language is Arabic. Employment counsel review for jurisdiction-specific compliance before first use.
Peoplifi generates UAE-compliant offer letters, warning letters, and policy packs from your employee data in one click — referenced against the Standing Orders Ordinance and applicable provincial law, with no copy-pasting and no version drift.