Questions & Answers
Termination of employment - bank accounts
My final settlement was sent to my Bank. They have put it on hold because I have a personal loan and a car loan until I provide a salary transfer letter from my new employer and a stamped visa page on my passport.
I needed a cash advance so I suggested that I will pay off the balance of my personal loan that they can release the settlement in my account. They refused saying that they can't because of the car loan.
I argued that the car loan is against a guarantee cheque and not against the salary transfer letter from my previous employer. They still refused to release the money.
What are my legal rights? Is there any procedures I can take to get my settlement now as the visa process is taking long and I don't know when I will get it... Please help...
Sincerely, Nawar
The banks in the UAE are authorised by the UAE Central Bank to freeze funds in employee accounts upon termination of their employment to satisfy any liabilities with the bank. The funds will only be released when those liabilities have been settled or there is proof that alternative employment has been secured accompanied by a salary certificate.
The above principle applies irrespective of guarantee cheques held by the banks as security.
To answer your question, until all loans are cleared or there is a new job and salary certificate in place, the funds in your account will continue to be frozen in your bank.
