Starting Work Without an Employment Contract in the UAE: Legal Implications and Risks

The UAE’s labour system is designed to protect both employees and employers through formalized, legally binding contracts. Yet, cases still emerge where individuals begin working without a signed agreement — a decision that can lead to severe consequences.

The Legal Framework

Under Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), all employment relationships must be governed by a written contract registered with the Ministry of Human Resources and Emiratisation (MoHRE). This contract defines obligations such as job role, salary, working hours, benefits, and termination rights.

An offer letter is only a preliminary step. While it outlines proposed terms, it does not carry the legal enforceability of a registered contract.

The Risks of Informal Work

Starting work without a contract exposes employees to:

• Limited legal recourse in wage or termination disputes.
  
  

• Vulnerability to exploitation, including sudden salary changes or role reassignments.
  
  

• Immigration breaches, since employment without a valid permit is unlawful.
  
  

• Financial instability, as salary enforcement requires a formal MoHRE-registered agreement.
  
  

For employers, allowing work to begin without a contract may result in penalties, compliance issues, and reputational harm.

Legal Precedents

UAE courts have consistently upheld the primacy of contracts. In one case, a court ruled that an employer was bound to pay wages under a contract signed but not yet commenced. This illustrates how contracts are the cornerstone of labour protection, regardless of whether the employee has started work.

Best Practices for Employees

• Insist on a contract: Never begin work until you and your employer sign the official MoHRE-registered agreement.
  
  

• Verify offer letters: Ensure details match what appears in the contract.
  
  

• Seek legal guidance: If already working without a contract, consult a labour lawyer to safeguard your rights.
  
  

Employer Responsibilities

Employers must:

• Issue written contracts to all workers.
  
  

• Register contracts with MoHRE for validity.
  
  

• Abide by UAE Labour Law in relation to wages, leave, and termination procedures.
  
  

Conclusion

Working without a formal employment contract in the UAE is a gamble with serious legal and financial risks. For employees, it can mean unpaid wages, deportation, or loss of legal recourse. For employers, it risks penalties and lawsuits. The safest path for both sides is clear: formalize every employment relationship through a properly registered contract.