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UAE

Calculation of gratuity when transferring an employee on secondment to the UAE

Q: If we transfer an employee on secondment to the UAE from another country for a period of 3 years, do we have to pay gratuity as per UAE law? As per his contract in the country where he is transferred from, the company is liable to pay provident funds in the country. After spending 3 years, he will be transferred back. Is the company liable to pay gratuity? Kindly note that he is one of the executive cadre, not a workman.
Questions & Answers
UAE

Delaying handover of an off-plan unit and seeking compensation

Q: I would like to seek your understanding of this clause in my SPA. I have an off-plan unit and the last completion date (when signed) was 29 Feb 2019. However, they informed that the new completion date will be April 2020. In March 2020, they informed me the handover is delayed till Nov 2020. ``The vendor shall prior to the Estimated completion date notify the purchaser of the designated completion date of the unit. (The `completion date`) The vendor may, at its sole discretion, and on notice to the purchaser given not less than 1 month before the completion date, extend the completion date to such other date as advised by the vendor from time to time provided that the total period of such extensions of the completion date shall not exceed 12 months from the first designated completion date, except in the case of force majeure.`` Please elaborate on this and advise if I am eligible for compensation after handover? Or even to get my 60% payment back from them. Thank you!
Questions & Answers
UAE

Protecting the foreign investor's rights when incorporating a company in the UAE

Q: I intend to participate in a boat charter company in which I will be the de facto 100% owner and supplying a boat for its operation. I understand that in order to be able to register the boat in the UAE and obtain the trade license, there has to be an LLC. However, to establish an LLC, a local person has to act as a 51% shareholder. Question: Can an MOA and AOA LEGALLY and in FULL CONFORMITY OF THE UAE LAW: a) define a GPA to me only to sell and deal with the assets (the boat) and receive the proceeds from a sale? b) restrict THE DIRECTORS and/or a Quorum of less than 75% of the Shareholder to sell assets (the boat) and borrow/commit the company to any financial obligations? Goal: the 51% local shareholder and the directors should not be able to dispose of the assets without my consent, and not to borrow or lend funds against the asset (the boat). What will be your cost setting up an LLC and drawing the appropriate documents incorporating the above? Please advise!
Questions & Answers
UAE

Agreement with the employee to get an advance payment on gratuity

Q: Dear Legal Advice ME I own a company in DIFC which is struggling due to the current crisis and employees were given three months notice because the company will probably be forced to close. One employee is asking if he can take his gratuity early as his wife has lost her job due to COVID-19. Can I legally give him a loan against a percentage of his gratuity? He has worked for me for 16 years.
Questions & Answers
UAE

حقوق المواطنة الإماراتية عند الزواج من رجل غير إماراتي

س: أنا إماراتية. أريد أن أتزوج يمني. هل أحصل على بيت في المستقبل باسمي؟ هل يلزمني التنازل عن حقوقي؟ هل أستطيع أن أجعل أبنائي أبناء مواطنات؟
Questions & Answers
UAE

الإجراءات المطلوبة لبيع عقار بعد وفاة الشريك خارج البلاد

س: السلام عليكم.. أمتلك عقار في دبي وقد تُوفي أخي شريكي في العقار وهو خارج الدولة ولديه أبناء. ما الإجراءات المطلوبة لبيع العقار في دائرة الأراضي؟
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Questions & Answers
UAE

Reducing salary by the employer and keeping it the same on WPS

Q: Dear Sir/Madam, Greetings! I am working in a fit-out company as a project coordinator. Due to the COVID-19 pandemic, my company issued a letter stating that our salary is reduced by half. But the problem is that the company is showing a full salary in WPS and not issuing my salary cards. I requested them, not to do this, but in vain. I have bank loan payments and home rent pending. And unfortunately, I can`t take any advantage of the UAE Government benefits in this crisis, because I don`t have any salary slip to show I am getting half salary. I am very tense and afraid. Please advise me, how can I solve this problem? Thanks A. K.
Questions & Answers
UAE

How to defer bank payments of mortgage due to COVID-19

Q: Good morning My husband lost his job last year in October after 15 years in Dubai. He continued to pay his mortgage without giving any excuse to the bank till now when COVID-19 happened. He is on my visa. We want to defer mortgage payments for a few months. Kindly advise what should we write to the bank in this regard as they are demanding the payment now. We received the email this morning. I would like to mention that we have been paying the mortgage regularly. Best Regards
Questions & Answers
UAE

Claiming back the fees paid to DLD after swapping a property with a different unit

Q: I purchased an off-plan property a couple of years ago from a Dubai based developer. After multiple delays, the developer has agreed to allow me to withdraw from the SPA and swap with another unit they are offering in another building that has been handed over. As part of the cancellation, am I allowed to claim back the 4% fee I paid on the original property from DLD?
Questions & Answers
UAE

A case for failing to hand over the key at the end of tenancy

Q: I had a flat from Nakheel in International City, Dubai. I moved from the UAE because of some domestic reasons and left with one family until the contract ends, but they didn`t hand over the key to Nakheel as promised. I even informed Nakheel about my situation by email and also sent them the final bill. Nakheel filed a case and won. I want to resolve this matter. Please advise the effective way and how you can help?
Questions & Answers
UAE

الوضع القانوني للعقد محدد المدة عند انتهائه وعدم إلغاء الأطراف له

س: هل يُجدّد العقد المحدد بسنتين تلقائيًا في حالة عدم إنهاء الشركة لعقد الموظف؟ وما الفترة المسموح بها قانونيًا للتجديد التلقائي للعقود؟
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Questions & Answers
UAE

التحقق من حساب الوالد في البنك وسحب أمواله بعد وفاته

س: السلام عليكم ورحمة الله وبركاته والدي مصري كان يعمل بوزارة التربية والتعليم الاماراتية منذ فترة 25 عام تقريباً وكان له رصيد في بنك وكان ينوي السفر لسحب الرصيد ولكن لم يشاء الله رب العالمين وتوفى والدي 8/4/2020. حالياً هل أستطيع أن أعرف هذا الرصيد بأي بنك موجود؟ أيضاً، هل يمكن أن أسحب الرصيد؟ مع العلم أن الوالد توفى دون إبلاغنا باسم البنك أو حجم الرصيد.
Questions & Answers
UAE

Possible case of fraud with corporate bank accounts

Q: I have filed a bounced cheque case in Sharjah courts. The judge appointed an expert meeting. In the application forms, I found out that my brother and the relationship manager of the bank opened a bank account under a company name in FZE. They used my signature on the application form and put the company stamp of one of our other company FZC which I am a partner in. But the bank statement of FZE shows the account`s opening date of 2009. Whereas the trade license shows it was formed in 2011. So how can he open a bank account in 2009 if the company was formed in 2011? I have a copy of the audit report signed by my brother showing the profits in the FZC. which he took as a dividend and transferred the funds to the FZE which he is 100% shareholder on the audit report. But the company bank account is in my name. He has transferred all the funds into his own account. As you can see that there is only a difference in the spelling word C and E between the 2 companies. Waiting for your reply.
Questions & Answers
UAE

Getting unpaid vacation days when being terminated for cause

Q: Hello, I would like to ask about pending vacation days under UAE labour law. If an employee is terminated for cause and they are not entitled to gratuity, does this mean that they are not entitled to get paid for their pending vacation days either? Thanks in advance for your assistance.
Questions & Answers
UAE

Safeguarding the transfer of assets to family after death

Q: I have some savings in banks and national bonds in my name and gratuity with the company. I am working in a private sector company in Dubai since 2013. I have 2 minor kids and a wife in Dubai. Can anyone advise what is the best plan to safeguard them if anything happens to me? Thanks
Questions & Answers
UAE

An unresponsive employer and the execution of court decisions

Q: I have filed a labor case in Sharjah Court against my employer for not paying 20000 AED/6 months. I have attended almost 6 hearings until now. But, my employer didn`t attend any of the hearings at court and also never replied to any notice from the court. Finally, the judge has asked me to put the legal summons in the newspaper. My questions are: 1. What will happen if he is not replying to this newspaper notice also? How am I going to get the money? 2. Some say that the court will distribute the money from your company security deposit, is this true? 3. Will he face any legal action for this case? Ex: Account ceases, travel ban (Because he seems to be like running away from the country), anything like that.