Transfer Letter (UAE)

A Transfer Letter in the UAE is a formal written document issued by an employer to an employee confirming that the employee's place of work, department, business unit, or employing legal entity has been changed, with effect from a stated date. The Transfer Letter in the United Arab Emirates is a fundamental HR document that triggers updates to multiple official records: the MOHRE-registered employment contract, the work permit, and — in some cases — the UAE residence visa.

The UAE's employment system is closely tied to the sponsorship and work-permit framework administered by MOHRE and the ICP (Federal Authority for Identity, Citizenship, Customs and Port Security). An employee's UAE work permit and residence visa are linked to a specific employer and, in many cases, to a specific job title. Where a transfer changes the employing legal entity (for example, from a subsidiary to a parent company, or from a mainland entity to a free-zone entity), a new MOHRE work permit and employment contract are required. Cabinet Resolution No. 1 of 2022 (the executive regulations to Federal Decree-Law No. 33 of 2021) sets out the procedures for employment mobility, including the conditions under which an employee can transfer between employers without losing their accrued rights.

Internal transfers — changes of department or location within the same legal entity — do not require a new MOHRE work permit but do require a MOHRE contract addendum to reflect the changed job title (if applicable) or work location. An internal transfer letter serves as this addendum. For geographical transfers within the UAE (for example, from the Dubai office to the Abu Dhabi office of the same entity), the transfer letter documents the change of work location and any associated relocation assistance.

The employment mobility provisions of Federal Decree-Law No. 33 of 2021, Articles 7 and 8, and Cabinet Resolution No. 1 of 2022 significantly liberalised the UAE's labour market. Employees who have completed one year of service may transfer to a new employer within 60 days of the end of their previous employment, without the requirement for a No Objection Certificate (NOC) from the previous employer — a significant change from the pre-2022 regime under Federal Law No. 8 of 1980. However, for transfers within the same corporate group (inter-company transfers), the employer still issues a transfer letter to document the movement and ensure continuity of service records.

For DIFC and ADGM employees, transfers are governed by DIFC Employment Law No. 2 of 2019 and ADGM Employment Regulations 2019. Transfers out of the DIFC or ADGM to a mainland entity require the employee to terminate their free-zone contract and enter a new MOHRE-registered contract, since DIFC and ADGM employment laws are separate from the federal Labour Law framework. The forms-legal.com UAE Transfer Letter template includes a transfer-type selector that covers all four common UAE transfer scenarios: internal departmental, geographical, inter-company within the group, and free-zone to mainland.

A UAE Transfer Letter is needed in four principal scenarios in the United Arab Emirates, each with different MOHRE and visa implications.

Internal departmental transfers occur when an employee moves from one department or business unit to another within the same legal entity, without a change of employer. This is common in large UAE organisations — banks, government-related entities (GREs), and multinationals — during restructuring, project rotation, or succession-planning exercises. The transfer letter documents the change of department, new reporting line, and (if applicable) changes to job title or salary. A MOHRE contract addendum is typically required if the job title changes.

Geographical transfers within the UAE occur when an employee's primary work location changes from one emirate to another — for example, from a Dubai headquarters to an Abu Dhabi branch of the same employer. The transfer letter documents the new location, the effective date, and any relocation assistance provided by the employer. The MOHRE file must be updated to reflect the new work location. The employee's UAE residence visa remains valid, as it is tied to the employer rather than the emirate.

Inter-company transfers within the same corporate group occur when an employee moves from one legal entity to another within the same group — for example, from a Dubai subsidiary to a parent company, or from one group company to an affiliated group company. Inter-company transfers typically require a new MOHRE-registered employment contract for the receiving entity, a new work permit under the receiving entity's establishment card, and (if the visa is not transferable) a new residence visa. The employee's continuous service with the group is typically preserved in the transfer letter to protect the end-of-service gratuity entitlement under Article 51 of Federal Decree-Law No. 33 of 2021.

Free-zone to mainland transfers (or mainland to free-zone) occur when an employee moves between a free-zone entity (DIFC, ADGM, JAFZA, DMCC, Dubai Airport Free Zone Authority, or other UAE free zones) and a mainland entity. These transfers require the termination of the existing employment contract and the creation of a new contract under the receiving legal framework. For DIFC and ADGM transfers, the receiving entity's employment law applies from the date of commencement. The transfer letter documents the transition, and the parties must ensure that all end-of-service entitlements accrued under the sending entity are settled before the new contract commences.

Employee-requested transfers — for example, where an employee requests a transfer to a different office for personal reasons, such as proximity to family in a particular emirate — also require a formal transfer letter once the employer approves the request. The mobility provisions of Cabinet Resolution No. 1 of 2022 support the employee's right to request a transfer, and MOHRE encourages employers to accommodate reasonable transfer requests to reduce unnecessary employment terminations.

A UAE Transfer Letter that creates a valid MOHRE contract addendum or triggers the appropriate visa and work-permit update must contain the following elements. The forms-legal.com UAE Transfer Letter template covers all of them.

Letterhead and employer identification must display the full legal name and address of the employing entity (the sending entity, or the receiving entity if the letter is issued by the receiving employer). The signatory must be authorised to issue employment documents — typically the HR Business Partner, HR Director, or CEO.

Employee identification must state the employee's full name, job title, and employee or staff ID, consistent with the MOHRE employment file. This ensures the transfer letter can be matched to the correct MOHRE record without ambiguity.

Transfer type must be clearly stated. The four UAE transfer types — internal departmental, geographical, inter-company, and free-zone to mainland — have different MOHRE and visa implications. Identifying the type in the letter allows MOHRE and the employee's HR team to know what filings are required.

Current and new assignment details must state the current location or department and the new location or department. Where the new assignment involves a different job title, the new title must be stated and will require a MOHRE filing. The new reporting line is important for the employee's clarity and for the organisational record.

Transfer effective date must be stated precisely in DD/MM/YYYY format. The effective date determines when MOHRE records must be updated and when any new work permit or visa application must be submitted to ICP and GDRFA.

Salary and benefit changes must be confirmed — either confirming that the salary remains unchanged or identifying the revised salary. Any relocation assistance (one-time allowance, temporary housing, transport to the new location) should be stated explicitly.

Continuity of service confirmation is critical for protecting the employee's gratuity entitlement under Article 51 of Federal Decree-Law No. 33 of 2021. The transfer letter should state that continuous service from the original employment start date is maintained and that the end-of-service gratuity will accrue without interruption.

Visa and permit update notification is required for inter-company and free-zone to mainland transfers. The letter should specify who is responsible for filing the updated work permit and visa and the timeline for doing so, consistent with ICP requirements.

Completing a UAE Transfer Letter requires identifying the transfer type first, then entering the details that are specific to that type. Work through the template as follows.

Begin with Employer Details. Enter the issuing employer's full legal name and the HR representative's name and title. In inter-company transfers, decide whether the letter is issued by the sending entity or the receiving entity — in practice, the sending entity issues the transfer letter and the receiving entity issues a new appointment letter or contract.

For Employee Details, enter the employee's full name, current job title, and staff ID as they appear on the MOHRE employment file. Any discrepancy between the letter and the MOHRE records will need to be corrected before the MOHRE filing can be processed.

For Transfer Details, select the transfer type from the dropdown. This is the most important decision in completing the form, as it determines what MOHRE and ICP filings are required. Enter the current and new locations or departments. Select the effective date — this should be co-ordinated with the payroll cycle and any visa-processing timeline. Indicate the new reporting line. Confirm whether the salary is unchanged or being revised (and if revised, attach or reference an increment letter or addendum).

For relocation assistance, enter the specific assistance being provided — one-time allowance, temporary accommodation, transport costs — as a dollar or AED figure. If no relocation assistance is provided, state 'None' to avoid ambiguity.

Once the letter is complete, print it on company letterhead, obtain the issuer's signature, and present it to the employee. Request the employee's signature on the acknowledgment block within five working days. File the signed original in the personnel file. For internal transfers, process the MOHRE contract addendum for any title change. For inter-company and free-zone to mainland transfers, engage the immigration team to file the new work permit and visa applications within the timelines required by ICP and GDRFA.

Transfer Letter (UAE) — Legal Requirements. Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), Articles 7 and 8, and Cabinet Resolution No. 1 of 2022 govern employment mobility and contract variations in the UAE private sector. Any material change to the employment contract — including a change of work location, job title, or employing entity — must be reported to MOHRE and reflected in the registered contract.

Cabinet Resolution No. 1 of 2022 introduced important mobility reforms: employees who complete one year of service may transfer to a new employer within 60 days of the end of their previous employment without an NOC, reducing the previous employer's leverage over the transfer. For within-group inter-company transfers, the resolution's continuity-of-service provisions protect the employee's gratuity entitlement and ensure that the years of service with the sending entity count towards the gratuity calculation at the receiving entity.

Article 51 of Federal Decree-Law No. 33 of 2021 governs end-of-service gratuity. For inter-company and free-zone to mainland transfers, the employer group must decide whether the receiving entity assumes the accrued gratuity liability or whether the sending entity settles the gratuity up to the transfer date. This decision must be documented in the transfer agreement and the transfer letter to avoid disputes at the final termination.

Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) regulations require that UAE work permits and residence visas are linked to the specific employing entity. A transfer that changes the employing legal entity requires a new work permit and, in most cases, a new residence visa. The timeline for filing these applications is critical: a lapse in immigration status may expose the employee and employer to fines under Federal Decree-Law No. 28 of 2021 on UAE Entry and Residence of Foreigners.

For DIFC and ADGM transfers, DIFC Employment Law No. 2 of 2019 and ADGM Employment Regulations 2019 apply. Transfers out of the DIFC or ADGM to a mainland entity require the termination of the free-zone employment contract and settlement of all free-zone employment entitlements before the new mainland contract commences.

UAE Transfer Letter — Common Mistakes That Create Immigration and Legal Exposure.

1. Failing to update the MOHRE work permit for inter-company transfers. When an employee transfers from one UAE legal entity to another, the MOHRE work permit must be transferred or re-issued to the receiving entity. Failure to do so means the employee is working under an invalid work permit, which is a violation of UAE immigration regulations under Federal Decree-Law No. 28 of 2021 and may result in fines for both the employer and the employee.

2. Not updating the UAE residence visa. For inter-company and free-zone to mainland transfers, the residence visa must also be updated to reflect the new sponsoring employer. Allowing the residence visa to remain in the name of the sending entity while the employee works for the receiving entity creates an immigration compliance gap.

3. Failing to settle gratuity from the sending entity before the transfer. Where an inter-company transfer is structured as a termination and re-hire (rather than a true internal transfer), the sending entity must settle the employee's end-of-service gratuity under Article 51 of Federal Decree-Law No. 33 of 2021 before the new contract commences, unless the employer group has a written agreement that the gratuity liability transfers. Without a written agreement, the receiving entity has no obligation to credit the sending entity's service period.

4. Using a transfer letter for what is actually a secondment. A transfer implies a permanent or indefinite change of assignment. A temporary deployment to another entity or location for a defined project should use a Secondment Agreement rather than a transfer letter, to preserve the employee's contractual relationship with the original employer. Mischaracterising a secondment as a transfer may affect visa status and gratuity calculations.

5. Not obtaining the employee's written consent for a substantial change of work location. While UAE employers have broad authority to direct the employee's place of work, a geographical transfer that requires relocation from one emirate to another is a material change to the employment relationship. An employee who refuses a substantial relocation without consent may raise a MOHRE complaint for constructive dismissal if the employer proceeds without agreement.

6. Omitting the continuity-of-service statement. Without a clear statement in the transfer letter that the employee's continuous service is preserved, the employee may be unable to establish the full length of service at the receiving entity for gratuity purposes. MOHRE will look for this statement in any gratuity dispute involving an inter-company transfer.