A Dubai employer has been ordered to pay more than Dh57,000 in compensation after failing to honor a signed job offer, leaving a prospective employee without work.
The Dubai Civil Court ruled that the company breached its contractual obligations and caused financial and emotional harm to the claimant. The court awarded Dh57,500 in damages.
Court records showed that the employee had accepted a position as senior procurement officer with a total monthly salary of Dh19,000. Acting on the offer, he cancelled his residency visa and severed ties with his previous employer.
However, the company did not complete the hiring process or allow him to begin work, leaving him unemployed and unable to meet his family obligations.
The case was filed after attempts at an amicable settlement failed. The employee sought compensation equivalent to three months’ salary, arguing that the company’s actions deprived him of income and a significant career opportunity.
During proceedings, the employer denied issuing the job offer. But the court relied on documentary evidence and electronic correspondence between the parties, which confirmed the offer and the initial steps to secure a work permit.
The judges found that the communications established a valid contractual relationship based on offer and acceptance.
In its ruling, the court stressed that once an employment contract is validly concluded, both parties are bound by its terms under the principle that agreements must be honored. It added that unilateral withdrawal from contractual obligations is not permissible when it causes direct harm.
The compensation awarded covered lost wages, the missed employment opportunity, and the psychological distress resulting from the claimant’s inability to meet his financial commitments.
