Questions & Answers - Legal Advice Middle East

Legal liability of the loan guarantor in case of default

Q: I signed a personal guarantee as "the wife" for a loan to my husband`s company without being told what the documents meant. Do I have any recourse to prevent it from being called for?

The maximum compensation expected for arbitrary dismissal

Q: Hi, I am pursuing a case against my employer for Arbitrary Dismissal. Is it common or rare to get 3 months of compensation? What is the usual compensation courts grant? I worked for less than a year and was at a senior position (Director) with the employer.

Requesting the eviction of tenant for failing to pay rent

Q: Hi, I have a property in Dubai. The lease expired end of February 2020, however, the tenant has not renewed the lease and is not paying me any rent. Also, the Dubai Government said I cannot give an eviction notice to tenants in March and April due to COVID-19. It`s almost 3 months and now she says she is not getting paid by her job and she is making excuses for payment or renewal. Can I approach Dubai court now and send her a notice for nonpayment and eviction? Please advise. Thank you so much

Early exit of tenancy without penalty after losing job

Q: I have to cancel my tenancy contract as I lost my job. I read in gulf news that tenants can cancel the contract without paying a penalty if they don`t have income for it. My wife has a job, but the tenancy contract is on my name. Is it possible to cancel the contract without penalty? Should I approach the court to get a ruling in my favour?

The need for a company to receive payments of services outside the UAE

Q: I want to run a global e-com business and would not trade in the UAE. I am living in the UAE for some time and would only receive my international payments in the UAE. Do I still need to get an e-com license from the UAE?

Is it legal to ask the employee to resign while on vacation?

Q: Dear Sir, I am a UAE resident and I work in a Dubi based company in Deira Dubai. I went on vacation on the 1st of March and supposed to come back to Dubai on 25th of March. Due to COVID-19 travel restrictions, my company asked me to stay in my home country up to 30th June on unpaid leave. Today my manager called me and asked me to send a resignation letter. I wanted to share with you that I was a good performer in my company and was achieving my targets. Is it legal to ask a resignation while I am on leave and they did not initiate termination but asking me to resign? Please also advise, is the company responsible to pay me full gratuity? And if the company terminates me, then am I also eligible to get 3 months salary as compensation? Please help me to cope with this situation. Thanks and regards, A. Z.

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Early exit of tenancy without penalty due to COVID-19

Q: Our shop rent already expired on 01 March 2020. We didn`t renew the contract as we have requested the landlord on 18 April 2020 to reduce the rent, but he is not ready to reduce. At this COVID-19 situation, we cannot afford this rent of AED 85000 for 29 Sqr Mtr. We informed the landlord on 18 April 20 only for non-renewal. So legally, how can we get out of this shop?

Termination of an off-plan property contract for delay in delivery

Q: I bought a one-bedroom apartment in 2015 for AED 1.04 m with a completion date of June 2017. I had paid 40% of the price, and 60% (AED 625,000) was to have been paid on completion in two years (2017). The project has been delayed significantly, and when I visited the apartment at the end of Feb 2020, it was not ready. The developer now claims to have received the BCC from the Dubai Land authorities and hence wants full payment of the balance AED 625,000. They claimed the property is ready for handover, but it needs work to be habitable. I am a British citizen, and my own situation has changed in the five years since. I kept the 60%, but since then, my financial situation is such I no longer have the 60% of the fund AED 625,000 to pay them. I can`t get the remaining as a mortgage for as an expatriate, I can get a maximum of 50% of the value which is now only AED 750000 max. How can I get compensation and my money back from the developer?

Claiming back money lent on interest to a friend

Q: My friend borrowed money from me for AED 50,000 and issued a cheque of the same amount as a guarantee drawn against her business account under sole establishment. We also signed an agreement that she will pay 7% each month for 6 months as an interest. In short, it`s been more than a month she has not returned the AED 50,000 to me and I already presented her cheque and got bounced for insufficient funds. Can I file a civil case directly against her for bounced cheque without filing a criminal case first? What if my friend tells the court that I lend money with interest and showed the agreement we signed, will the court punish me or put me in jail? Kindly advise, what is the best thing to do?

Legal assistance in drafting a shareholders agreement for a startup

Q: We are a startup based in the UAE with a setup in the BVI and shareholders. We have been growing rapidly these past couple of years and we are looking for a reliable lawyer to re-write our shareholder agreement and help us with the legal structure of the company. Kindly advise.

Expected action by the bank for defaulting on loan installments

Q: If I default to pay the loan amount (3 EMI), and my outstanding is 56000/-AED with a bank, can the bank put a case against me? And how much amount can they claim against me? Thanks

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Claiming unpaid invoice from a client located in Saudi Arabia

Q: One of my clients is located in Saudi and he isn`t paying the amount he owes to me for the goods supplied to him. He`s way past the 90 days credit and now he isn`t picking up my calls. What are my options?

Rights of an employee forced for unpaid leave due to COVID-19

Q: Hello, I’m working as a teacher and my school sent me on unpaid leave for 5 months I called Tawafoq, and Tawafoq contacted the school to tell them that I refused this unpaid leave. So the school said ok if he doesn’t agree with unpaid leave he can go to court. So now I My contract is limited. So I asked for three months breaking the contract and the rest of my rights. The question here is shall I raise the complaint like this or I should raise the complaint that I’m asking the school to pay me those 5 months for the unpaid leave months? I’m really confused because the school didn’t terminate me, but they forced me for unpaid leave and I didn’t sign it. I’m working for one and a half year with them. If you please tell what rights I should write in the complaint and ask the court to get it for me without doing or asking for something illegal. Kind regards, Mr M.M.

Precautions before purchasing an off-plan property

Q: Buying off-plan project. I am taking the extra precautions of buying an off-plan project to be completed in Q3 2020. My questions to you, what are the legal documents I should receive before putting the 20% down payment? Please advise. I highly require legal advice. Thanks

The legality of extending probation period beyond six months

Q: Hello. I was working under DMCA free zone listed company for 8 months. I recently received a termination letter from my company. The end of service settlement provided by the HR director is showing only compensation for my vacations and saying my probation is extended after the 6th month for another 6 months, of course without my knowledge. My contract is limited and there is no clause in the contract about an extension option available. Is that legal? What am I entitled for as per the UAE laws?

Requirements of starting a platform for posting ads in Dubai

Q: Greetings! I will be running a website (blog-post + classified ads) from home, that provides services and posting ads, and it will accept membership in some countries that speak English. I am located in Dubai. Since it requires a free subscription, I want to ask if I am obliged to register it as business anywhere to be legal, or if I do not register, I will be asked or arrested for running this website. The website is under maintenance at the moment, it will be broadcasting after it is completed. Some points I am really concerned with: 1- Do I need a legal registration of the website as a business? If yes, can you help me find out how? If I register in one country - let`s say UAE - will it be legal in other countries e.g UK, US? 2- GDPR is really critical point that we have to consider especially for websites that collect info from visitors if required. What are the major points that we have to focus on GDPR? Kindly help me optimize my website to get rid of any unsuspected legal issue. Regards