Questions & Answers
Termination and holding company assets to get labor dues and visa cancellation
I was MD of a company, however, I was made redundant back in Jan 2019, signed a settlement agreement with my employer.
According to the settlement agreement, the employer had to cancel my visa before May 31, remove my name from the trade license and replace me with a new signatory for bank accounts.
However, due to some reason, they couldn’t replace me, so they couldn’t cancel my visa at the end of May.
After all, now in October, the employer has informed me that they are now ready to take over bank accounts to a new signatory and replace me on the trade license.
In the meantime, as a sole signatory of the company, I signed all company documents until Sept. to make sure the company operates smoothly.
But since my employer didn’t pay my annual home leave tickets and other benefits, I stopped signing company documents as of September.
All in all, I don’t want to hand over bank accounts till they pay my benefits.
If I delay the bank account handover process, will it cause any legal issues against me?
Dear Sir,
In the UAE, all employees exiting a company have to sign a statement with their employers regarding final employment dues before the employment and residence visas can be cancelled.
In your case, this was in the form of a settlement agreement. The terms of your settlement agreement should state your last day and your responsibilities between the date of signing your agreement and your exit.
If you were still with the company after a specific date and still performing certain duties that are not covered in the agreement, then there is a right of claim.
I will have to take a look at your settlement agreement to see the terms and advise you accordingly.
Please send it to my email and please call me on my phone.
Many thanks.
