Questions & Answers - Legal Advice Middle East

The effect of a non-copmete clause upon moving from an LLC to a Freezone company

Q: Hi, I am writing to inquire regarding the non-compete clause. I resigned from a Dubai-based mainland LLC company in July 2021 and from then, they were not canceling my visa and not giving me EoSB. I filed a labor case and finally won the case after 6 months. I worked 7 years in a sales position with them. Recently, I received a job offer from a competitor to do the same role. The competitor is in Sharjah Freezone and I will be under a Freezone visa. There was a competition clause in my job offer letter which I signed 7 years ago but there was no such clause in the contract. And that time I hold a technician position and my recent position was sales. The clause written in the offer letter says: "should you terminate your employment contract, you shall not join any competitor in the UAE conducting the same activity as the company, before a period of one year following such termination". I am wondering if the non-compete restriction will apply to me given that I will be joining a Freezone company this time?

How to recover the amount of bounced cheques?

Q: Dear sir/madam, I have two cheques that are bounced. Their amounts are 20000AED and 20000AED. I want to take legal action against the drawer. What is the procedure? And how much are the fees?

تقدير التعويض المستحق نتيجة الإيذاء الجسدي والنفسي

س: السلام عليكم، كم تقريبًا التعويض المالي لكسر بمفصل اليد وإجراء عملية تركيب مسامير وعدم القدرة على الحركة الصحيحة لمدة 14 شهرًا ثم زيارة طبيب نفسي للعلاج بسبب الاضطرابات؟

How is annual leave pay calculated under the new UAE labor law?

Q: Under the new UAE labor law, how is annual leave pay calculated? Based on only basic salary or full monthly salary?

What does accepting the appeal application filed by the employer mean?

Q: Hello, The employer has filed a labor appeal on the amount of 160k. Online status shows that the application has been accepted and is ready to be completed. What does that mean?

Is it illegal to provide digital web design services online without a license?

Q: Is it illegal to provide digital services online such as (web design and development) without a license? If so, what is the punishment for doing so?

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How to change the company status when the Emirati partner passes away?

Q: Our local Emirati partner who owns 51% passed away 2 years back. He didn`t invest any money however we pay every year sponsoring fees. How to get rid of this issue?

كيف يمكنني الحصول على حصتي من إرث بيت تركه والدي من باقي الورثة؟

س: أبي توفي وترك بيت ورثة. ويسكن في البيت زوجة أبي وأبناؤها وبناتها. أنا متزوج وعندي أطفال وأسكن في شقة إيجار وليس عندي كي أدفع إيجار الشقة. إخواني وزوجة أبي لا يبغون أن أسكن ببيت أبي. ما هو الإجراء الذي يجعلني أسكن في بيت أبي؟

Can the landlord force rent increase if it is not allowed by RERA Rent Index?

Q: Hello Madame. My landlord sent me a notice to increase rent on the renewal of tenancy, 90 days in advance before the end of the contract. However, no rent increase is permitted as per RERA Rental Index, as such, I refused the increase and asked him to renew the tenancy at the same rent as last year. He refused and asked me to vacate upon tenancy completion which is on 14-Feb. Now, he is threatening to come to the house, and force me to vacate on 14-Feb. What are my legal options? I want to continue living in this house, and pay the same rent, as last year, as no increase is permitted as per RERA Rent Index.

Can I receive money from my USA company on my UAE company account?

Q: I have registered a company in SHAMS. I am the sole owner. I have no UAE clients. I only work for a USA company as a supplier. It`s all online work. Can the USA company transfer payment to my personal account in Dubai? The bank has agreed to it. It`s a big amount, so I want to make sure I am not breaking any law.

How can we access the bank account of a deceased person?

Q: My uncle died 2 weeks ago in one of the private hospitals here in Dubai. We have already completed everything regarding the repatriation of his body with the help of his employer and his remains are already sent back to our home country last week. He used to give me an access of his ATM card before and I tried to access it just few days ago and I found out that there is some amount of money left on his bank account. I am aware that he has some pending bank loan requests before he died, so I am afraid that amount might be the reason of such big amount. Being the only family member of my deceased uncle, what should I do in order to make sure that the amount is from his savings and not from his bank loans? In case the amount is proved to be his own savings, is there any chance for me to get the authorization to claim that amount from the bank to be used by his family? He has a wife with 3 kids back home. Thanks a lot in advance.

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Is it possible to get refund of purchased property from developer if there is no SPA?

Q: Hello! Last month I found an apartment that is still under construction with a great payment plan. I decided to buy it! There were several calls between me and the developer and we agreed that I transfer the booking fee. Note: When I sent the amount no SPA was signed and I haven’t even received a SPA. Nothing has been signed! Neither from me nor from them! The amount is about $18.500. My passport was invalid too and I needed to make a new one. So they could not register me at DLD also. Now, I have some problems with continuing the payments and want to cancel the payment plan and asked for a refund. They haven’t given me any answer yet and been telling me to wait for next week, wait for next Friday and so on. What can I do to receive a refund? Do I have a right to receive the full amount back as there is no signature made by me & no registration at DLD? Thanks

When should the agency fee be paid to the broker?

Q: Dear sir/madam, When should the agency fee be paid to the broker? Or when does any real estate agency deserve to take a commission; as soon as the contract is signed by both parties or something else?

Decreasing the amount of a loan after filing a civil case by the bank?

Q: Hi, I took a personal loan from a bank in 2018 for AED260000 then I left the country but continued to pay for a while. One month ago in Dec 2020, they have filed a civil case. If I hire a lawyer for my case to clear, would that help to solve the issue or should I try contacting the bank to negotiate? I am not sure if the bank will be willing to negotiate to close the outstanding as I was told by a friend, that banks have insurance on the debt that is lent and if there is a civil case they can claim insurance for the lost money rather than negotiating with the borrower, especially after a civil case is registered. Is that true? I want to clear my name at the earliest but I don`t have that much money (now it is AED 293000 with interest and late fee). In a civil case, what are the proceedings if I hire a lawyer? Does it help to get the amount of payment lowered via court? If so, how much lower can the court order to close the case and how long would it take? Thanks!

المدير يوكل مهامه لشخص آخر. مَن يتحمل المسؤولية في حالة رفع دعوى عمالية؟

س: السلام عليكم، شركة ذات مسؤولية محدودة يمتلكها شريكان بنسب ٥١% و٤٩%. صاحب النسبة الأعلى يختص بالإدارة كما جاء في عقد التأسيس ولكنه حرر (توكيلاً خاصًا واعتماد بالتوقيع) لشخص آخر أوكله بمهام الشركة؛ مثل تعيين العمالة وإنهاء الخدمات والرواتب وما نحو ذلك. مَن منهما يعتبر المدير الذي يُقَاضَى أمام المحاكم العمالية؟

Is it legal for your sponsor to deduct your monthly salary that it goes towards your gratuity?

Q: Is it legal for your sponsor to deduct your monthly salary that it goes towards your gratuity? My sponsor deducts my salary 160 every month giving me excuses of saving it towards my gratuity but without a written document. I would like to know how true that is?