In many UAE workplaces, key terms such as a bonus, a housing upgrade, a revised role or a shorter notice period are still agreed orally. These informal promises often end up as disputes before the Ministry of Human Resources and Emiratisation (“MOHRE”) and the courts.
Private sector employment is governed by Federal Decree-Law No. 33 of 2021 (“Labour Law”), in force since 2 February 2022, and Cabinet Resolution No. 1 of 2022 (“Executive Regulations”). The Labour Law applies to private sector employers across the UAE, including in the free zones, many of which supplement it with their own employment regulations. The DIFC and ADGM have separate employment regimes.
Successive amendments to the Labour Law have raised the stakes. MOHRE can now issue binding decisions on claims of up to AED 50,000, and the limitation period for claims has been extended to two years from the end of employment. The 2024 amendments also sharply increased fines for serious employer offences, to between AED 100,000 and AED 1,000,000, signalling a tougher enforcement climate overall. An undocumented promise is therefore a greater risk for employers than it once was.
This article explains how UAE law treats terms agreed outside the written contract and how such promises are proved in a dispute. It also sets out the practical steps employers can take to keep their documentation aligned with what has actually been agreed.
Every employment contract must be for a fixed term and may be renewed by agreement. Since Federal Decree-Law No. 14 of 2022, there is no statutory maximum duration. The contract must be in writing on the approved model, and the Executive Regulations prescribe its particulars, including the parties, job title, place of work, remuneration and duration.
The contract registered with MOHRE is expected to be consistent with the signed offer letter. A term that appears in neither, such as a promised bonus, sits outside the registered record. An employee relying on it must prove it separately.
Although Article 8(1) of the Labour Law requires the employment contract to be in writing, UAE law does not generally prescribe a form for other obligations, so an oral promise made during employment can be enforceable. The difficulty is proof, and the position depends on who relies on the promise.
Under Article 66 of the Evidence Law (Federal Decree-Law No. 35 of 2022), a transaction exceeding AED 50,000, or of indeterminate value, must be proved in writing unless an agreement or legal provision states otherwise. Article 67 adds that witness testimony cannot be used, even for smaller amounts, to contradict or go beyond a written document. Emails and messages count as documentary evidence for these purposes.
The Labour Law, however, favours the employee. Article 8(2) allows the worker to prove the contract, the wage and any statutory rights by all means of evidence, so an employee is not confined to written proof, even above AED 50,000. The employer has no equivalent concession.
Some changes must be in writing regardless. Under Article 12, assigning an employee work outside the agreed role requires the employee’s written consent, so an oral agreement to a revised role is vulnerable from the outset. In practice, an oral promise that contradicts the registered contract is hard to establish. One that fills a gap and is supported by messages, payslips or a consistent pattern of payment stands a much better chance.
Article 65 of the Labour Law sets the statutory rights as a minimum. A term that departs from them is void unless it is more beneficial to the employee, and the same applies to any waiver or settlement of those rights in breach of the law, whether the arrangement is written or oral.
Common examples include an agreement for the employee to bear recruitment or employment fees and costs (prohibited by Article 6(4)), a waiver of end-of-service gratuity (Article 51), and a waiver of annual leave other than a permitted carry-forward or payment in lieu (Article 29). Article 43 also requires the contractual notice period to be between 30 and 90 days. The parties may agree to waive or shorten the notice period, but the employee remains entitled to pay for the full contractual period.
Articles 44 and 45 list the limited grounds on which the employer or the employee may end the contract without notice. Under Article 47, a dismissal is unlawful where it results from the employee’s serious complaint to MOHRE, or from a claim against the employer that is proven valid. The court may then award compensation of up to three months’ wages, calculated on the last wage, in addition to notice pay and gratuity.
An employer cannot unilaterally change an employee’s salary, job title or nature of work. As to the work itself, Article 12 of the Labour Law prohibits assigning fundamentally different work, except temporarily in cases of necessity or accident, and requires the employee’s written consent for any other work outside the contract. Amendments must also be registered with MOHRE.
An oral variation to the employee’s detriment, such as a pay cut, is unlikely to be upheld. One in the employee’s favour may still be enforceable, since Article 8(2) allows the employee to prove their rights by any means. Where the contract and offer letter differ, the employee can ask in writing for them to be aligned and, failing that, complain to MOHRE.
An oral side agreement is not automatically void in the UAE, but it is a weak foundation. It must be proved, it cannot reduce statutory rights, and a change to the employee’s detriment is unlikely to be upheld without written consent and registration with MOHRE. Employers should document every promised benefit. Employees should ensure that promised terms appear in the signed contract and keep the evidence that supports them.
Note: This legal update / newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.
Private sector employment is governed by Federal Decree-Law No. 33 of 2021 (“Labour Law”), in force since 2 February 2022, and Cabinet Resolution No. 1 of 2022 (“Executive Regulations”). The Labour Law applies to private sector employers across the UAE, including in the free zones, many of which supplement it with their own employment regulations. The DIFC and ADGM have separate employment regimes.
Successive amendments to the Labour Law have raised the stakes. MOHRE can now issue binding decisions on claims of up to AED 50,000, and the limitation period for claims has been extended to two years from the end of employment. The 2024 amendments also sharply increased fines for serious employer offences, to between AED 100,000 and AED 1,000,000, signalling a tougher enforcement climate overall. An undocumented promise is therefore a greater risk for employers than it once was.
This article explains how UAE law treats terms agreed outside the written contract and how such promises are proved in a dispute. It also sets out the practical steps employers can take to keep their documentation aligned with what has actually been agreed.
The written contract
Every employment contract must be for a fixed term and may be renewed by agreement. Since Federal Decree-Law No. 14 of 2022, there is no statutory maximum duration. The contract must be in writing on the approved model, and the Executive Regulations prescribe its particulars, including the parties, job title, place of work, remuneration and duration.The contract registered with MOHRE is expected to be consistent with the signed offer letter. A term that appears in neither, such as a promised bonus, sits outside the registered record. An employee relying on it must prove it separately.
Oral agreements and proof
Although Article 8(1) of the Labour Law requires the employment contract to be in writing, UAE law does not generally prescribe a form for other obligations, so an oral promise made during employment can be enforceable. The difficulty is proof, and the position depends on who relies on the promise.Under Article 66 of the Evidence Law (Federal Decree-Law No. 35 of 2022), a transaction exceeding AED 50,000, or of indeterminate value, must be proved in writing unless an agreement or legal provision states otherwise. Article 67 adds that witness testimony cannot be used, even for smaller amounts, to contradict or go beyond a written document. Emails and messages count as documentary evidence for these purposes.
The Labour Law, however, favours the employee. Article 8(2) allows the worker to prove the contract, the wage and any statutory rights by all means of evidence, so an employee is not confined to written proof, even above AED 50,000. The employer has no equivalent concession.
Some changes must be in writing regardless. Under Article 12, assigning an employee work outside the agreed role requires the employee’s written consent, so an oral agreement to a revised role is vulnerable from the outset. In practice, an oral promise that contradicts the registered contract is hard to establish. One that fills a gap and is supported by messages, payslips or a consistent pattern of payment stands a much better chance.
No reduction of statutory rights
Article 65 of the Labour Law sets the statutory rights as a minimum. A term that departs from them is void unless it is more beneficial to the employee, and the same applies to any waiver or settlement of those rights in breach of the law, whether the arrangement is written or oral.Common examples include an agreement for the employee to bear recruitment or employment fees and costs (prohibited by Article 6(4)), a waiver of end-of-service gratuity (Article 51), and a waiver of annual leave other than a permitted carry-forward or payment in lieu (Article 29). Article 43 also requires the contractual notice period to be between 30 and 90 days. The parties may agree to waive or shorten the notice period, but the employee remains entitled to pay for the full contractual period.
Articles 44 and 45 list the limited grounds on which the employer or the employee may end the contract without notice. Under Article 47, a dismissal is unlawful where it results from the employee’s serious complaint to MOHRE, or from a claim against the employer that is proven valid. The court may then award compensation of up to three months’ wages, calculated on the last wage, in addition to notice pay and gratuity.
Amending terms
An employer cannot unilaterally change an employee’s salary, job title or nature of work. As to the work itself, Article 12 of the Labour Law prohibits assigning fundamentally different work, except temporarily in cases of necessity or accident, and requires the employee’s written consent for any other work outside the contract. Amendments must also be registered with MOHRE.An oral variation to the employee’s detriment, such as a pay cut, is unlikely to be upheld. One in the employee’s favour may still be enforceable, since Article 8(2) allows the employee to prove their rights by any means. Where the contract and offer letter differ, the employee can ask in writing for them to be aligned and, failing that, complain to MOHRE.
Practical steps for employers
- Ensure the offer letter and contract record every agreed term and match each other.
- Make later changes by a signed amendment registered with MOHRE, with written consent where Article 12 requires it.
- Prevent line managers from making informal promises on pay or benefits, and require any commitment to be approved and confirmed in writing.
- State whether bonuses and allowances are contractual or discretionary.
- Keep employee files, payroll records and correspondence for at least two years after employment ends (Article 13).
- Review informal arrangements and remove any term below the statutory minimum.
Conclusion
An oral side agreement is not automatically void in the UAE, but it is a weak foundation. It must be proved, it cannot reduce statutory rights, and a change to the employee’s detriment is unlikely to be upheld without written consent and registration with MOHRE. Employers should document every promised benefit. Employees should ensure that promised terms appear in the signed contract and keep the evidence that supports them.Note: This legal update / newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.