Questions & Answers - Legal Advice Middle East

Penalty paid by the employee for early termination of a limited labour contract

Q: Hi. My limited-term employment contract states as below. Please let me know, does this entitle my employer to deduct 6 months salary if I terminate the contract without serving a notice period. "Should either party desire to terminate the renewed contract, such party shall notify the other party of such desire within (3 Months) prior to the date of termination. Such period shall be similar for both parties. Both parties have agreed that the termination wage to be paid by the terminating party to the other party shall be equivalent to the value of the worker’s total wage in (3 months). Such wage shall be similar for both parties."

Is it possible to leave the UAE if you have a loan and continue paying from outside?

Q: I have an outstanding loan in the UAE, and I got a job in Europe. How do I go about it? If I inform the bank, will they allow me to continue paying the loan from outside the UAE?

How to guarantee your rights before investing in a company

Q: Dear Sirs, I`m looking to invest in a company by purchasing movable assets. I will not be a partner in this company, however, the company owner is offering to give a security cheque against a minimum amount to be invested in. My questions are: Is it feasible to get a security cheque against the amount invested? does it secure my invested money? What are other alternatives to guarantee my money invested? Is there any minimum amount where the debt amount is due, identified, unconditional and is not less than AED 10,000 and evidenced in writing? After then I can be able to file for a court case whenever this debtor breaches the given date? Your response is highly appreciated, Thank you in advance, RAFIC

Application of the MOA terms in case of a partner's death

Q: Hi, There are 3 partners in an LLC company. One is local partner who holds 51 % of shares, the second partner holds 36 % of shares, and the third partner holds 13% of shares. According to the memorandum of association, it`s written that in case of second partner death, the 3rd partner will be the managing director of the company and have full rights to represent the company in all ministries, to sell, buy companies assets, to close, open bank accounts and to hire or fire staff, etc. Now, the second partner passed away. My question is: Will the company`s bank accounts be frozen or the second partner has full rights according to the MOA?

Is it legal to take a security cheque from employees and withhold EOSB?

Q: Hi Sir/Madam, While I joined our company, they got a security cheque (Blank dated) from me. When the staff leave their job, the company gives less amount for settlement. If we ask for the correct settlement, they threaten us "if you ask more, will we deposit the cheque" like that. Suppose they deposit the cheque and bounced, what will happen? I have only a cheque copy. I don’t have any other proof. Can you tell me how we can be relieved from this issue and get the full settlement?

Right of the employee to seek compensation when terminated after probation

Q: Hi, My employer asked me to sign a dismissal of service due to a lack of projects. I have been working there for more than 6 months and I was planning to go back to my home country after my notice period. Am I entitled to compensation due to dismissal of service by just working for more than 6 months?

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Resignation after taking ticket encashment or vacation salary

Q: Hi, Good Morning! I am working in a hotel. I have applied for vacation and ticket encashment. After taking ticket encashment or vacation salary, can I resign before going on vacation (home country)? I have 48 days of vacation and 80 percent of the ticket cost? Please advise me!

How to locate the assets and bank accounts of a deceased

Q: Dear Rajasree, Hope you are doing well. My brother who was working in Dubai for the last 20+ years expired due to Covid in Dubai. He was unmarried and we are non-Muslims (Zoroastrians) residing in Pakistan. His body was also cremated in Dubai by the Government. The HR department of the company he was working for has forwarded us his death certificate and is helping us with his insurance and official bank account but we have reasons to believe that he was maintaining another personal bank account which we are unaware of. I shall be grateful if you can guide us through this process and how to locate his other accounts or any other investment he might have made in Dubai. Thank you!

How to request a PCC from outside the UAE without Emirates ID

Q: Dear Ma`am, I was in Abu Dhabi from 2006 to 2008 and now I need a police clearance certificate. But I don`t have Emirates ID, that`s why I can`t apply online. Right now I am in Bahrain, please guide me on how I can apply for the PCC.

What is the expected penalty when the bank files a case for credit card

Q: I applied for my child new visa and it was pending for a long time. When I reached the immigration, they said I have a police case and after I was suspecting that the bank said one credit card case is registered against me and now they demand double of the credit card limit. Please suggest to me how I can clear all this.

Blocking an employee's visa in case of resignation before the end of his limited contract

Q: I was working in a company for 1 year and 10 months. My visa is about to expire; in July. My contract is limited. I got a job offer in another Emirate. I requested my employer for resignation. In the beginning, he accepted and hired another employee, but lastly, he did not accept my resignation. I told him that I will serve 1 month notice period and I am willing to pay 45 days salary. Now, he is threatening me that he will block my visa. I want to know if there is a possibility of blocking my visa. Please clarify this situation and I want to know the rights.

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The possibility to file a civil case after filing a criminal case for a credit card default

Q: I have 2 credit cards. One of them started in 2016 and was not paid from Dec. 2016. Can the bank file a civil case against me after already filing a criminal case in court now? The other credit card was started 5 years before. Can the bank file a civil case against me? They are calling me every week. The limit was 75k and the bank said they are now calculating interest and reached approx. 110k.

What to do in case of defaulting on property SPA obligations due to COVID-19?

Q: Hi, I have a contract with a developer for two properties. But since Coronavirus periods started, I was not able to pay the quarterly instalments. There are some penalties as per the agreement too on defaulted payments. Now if I want to cancel the contract and get refunded, how much should I expect? And also, if I cancel only one contract and the payment on it as it is could be transferred to the other contract to continue with that.

سداد أصل المبلغ فقط في حالة فقدان العمل

س: غادرت الدولة بعد سداد ٣٦ قسط للبنك بسبب فقدي لعملي دون أدنى سبب لإنهاء العقد. البنك يطالبني بالسداد عن طريق محامي واتصل بأفراد عائلتي. هل يكفيني سداد أصل المبلغ دون فوائد؟ يُرجى الإفادة!

The fine of a loan less than AED 200,000

Q: Madam, If the amount is 15,000, what is the fine to solve the issue?

Terminating an employee in case of working for a competitor without permission

Q: An employee was found to be working on his weekly day off for a competitor. I (the employer) cannot prove that the employee received any monetary consideration for his work but the fact that he offered his services to a competitor itself is deeply disturbing to the environment of trust and integrity in the company. Needless to say, this employee cannot be trusted in the future. The incident in question was witnessed by someone who knows me personally and the said person called me from the site and reported it to me. It is possible that the employee has been doing this regularly over time but happened to get noticed this time. Can this employee be terminated under Article 120 of the UAE Labour Law? If not, what remedies are available to the employer?