Questions & Answers
Options in case the post-dated cheques of EOS benefits bounce back
Hello
A DIFC based company I work for hasn't paid 5 months worth of salary, plus business travel expenses. The total so far is around AED 700K. In addition, if I leave the company, there will be the gratuity and pay-in-lieu of unused vacation.
The company is offering me post-dated cheques (cheques are in the name of the company, the signer is the group president and one of the shareholders). I am trying to get cheques above AED 200K (because if the cheques bounce it is a criminal charge, right?)
1- What are the consequences for the company and the owner if the cheques bounce? Will the signer face prison and travel ban?
2- How do I raise a complaint about the bounced cheques? Which police department or government authority I need to go to?
3- If the signer says the company doesn't have money to cover the cheque, because the company is not generating revenue or has many assets, then what happens? does he get away with it? Or goes to prison and faces a travel ban?
Much appreciated
Rick
It is seen that you have the labour case with the claim of pending salary and other allowances.
In respect of the cheque bounce issues, the action needs to be initiated with police. It seems that you need a consultation over the matter.
Feel free to reach me 0527520742 (Call/ Whatsapp)
Dear Questioner,
Answering your first unnumbered question:
Yes, you are right. having a cheque above AED 200 will make your case stronger because the punishment must include imprisonment and not only a penalty. Both above and below 200k are considered criminal offences.
Answering your numbered questions:
1) The authorized signatories will get in trouble if you file a criminal complaint against the company for drawing and giving you a cheque with insufficient funds. Yes, the authorized signatory will be at least prohibited from travelling but mostly will be detained.
2) You can file the complaint with the Police Station nearest to the company office where you have received the cheque. In your case would be the Bur Dubai Police Station. The procedure is to attend personally to the Police Station and bring the bounced cheque together with the rejection statement from the bank.
3) The cheque that bounces has no relation to the company activities. The authorized signatory must settle the payment or will be in trouble. This, of course, is in case they do not escape the country when the incident occurs. Then they will have trouble, put their names on the travel ban/waiting list.
I would rather recommend you to avoid the postdated cheques and try to acquire any other equivalent assets of the company that may be worthy.
If you wish to have further advice please do not hesitate to book an appointment with me through admin@elnaggarlegal.com
Regards,
Ahmed Elnaggar
