Q: I have just filed a labour case against my employer where he owes me wages for an amount of over AED 1 million. At the same time, I'm unable to work anywhere else because my UAE residence visa has not been cancelled by the employer and he is not present in the country. His UAE visa would get cancelled automatically by this month end in case he does not enter the UAE which will be the 180 days expiry deadline. In that case, my visa also automatically gets canceled. I have my own dues to pay to the banks which I cannot pay due to unpaid wages, and they are planning to file civil/police cases against me. If the labor case judgment is in my favor, can I use this judgment for the banks so as to explain them the reason for nonpayment or delayed payment or in the court if they file a civil case against me? Can this help in negotiating with the bank for a partial or even full waiver or get a restructure with less interest rate spread over several months?

Q: Dear Sir, I had a loan of AED 20,000 and I was paying my instalment every month until I lost my job. My outstanding amount was only AED 8000 by then, but hence I didn't have a job and I couldn't pay for 7 months. However, as I found a new job I started to pay again but a case was filed already by this time. I was jailed for 2 days and I was presented to the courts where they gave me a fine of AED 2000, then I was released. Now, the recovery department is calling me again and telling me to pay AED 14000 as they say that's my current outstanding amount. They say that a civil case will be filed if I fail to pay. So what will happen if they filed a civil case? Please advice.

Q: I need your assistance, please. I believe that the Central Bank of the UAE may freeze the bank account of a terminated employee. We have a client in the UAE and need to know what the employer’s obligation is to inform the bank when an employee’s contract is being terminated. Is there a specific format that must be used to inform the bank or what is expected of the employer?

The management of individual financial affairs is crucial and all the actions must be weighed down while committing to any financial liability. Whether it's job loss that may have lead to financial failure or the opposite, one must be aware of the personal liability which will not diminish by paying fines for cheque bounce cases. There are two major types of liabilities, criminal liability and civil liability. Each has its own significance, hence, must be dealt with accordingly.

The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.

The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).