Q: If you are fired from your job of 10 years and you have a loan, what will happen with UAE law? Can you lose your end of service benefits?

Q: Dear Sir, Can I settle my personal loan amount by using EOSB? I was not able to pay instalments after losing my job, so I made a one-time settlement with the bank to pay xx amount and finish my personal amount.

Q: My contract was terminated after four years of service and I have received the End of Service payment to my bank account, but this amount was immediately blocked. I have contacted the bank to release the amount. I also said that I want to continue normal payments of loan instalments. I still have about 24 monthly payments, but the payment is only for 9. Can the bank agree that I make instalment payments if I am no longer in the UAE?

Q: Hi, I am currently working in the UAE and have a remaining loan with my bank. I am now out of the country and plan to resign. My final gratuity is higher than my remaining loan. Since the bank will automatically freeze my account after receiving my final settlement, my question is: How can I clear my remaining loan and retrieve the remaining money while I am already out of the UAE? Thank you for your answer!

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 UAE government introduced the new Unemployment Insurance Law under the Federal Decree-Law No. 13 of 2022 Concerning the Unemployment Insurance Scheme for Unemployed People. The law aims at providing a sort of financial support in case of unemployment for a brief period, probably to help employees who got terminated find another job and avoid failing in other financial obligations.

The law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.

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).