Questions & Answers - Legal Advice Middle East

On which stage should I form a company for a new business in the UAE?

Q: Hi, I am planning to start a business consultancy company in the UAE which will manage and run the complete business. We have our own projects in the paper for which we require partners. At the same time, we are inviting individuals to show their interest to be part of any project as they will inform us their financial capability and once we will have sufficient number of people then we will form a separate LLC company in which all the investors will be the partners and our company will be the consultant to them. If I want to do this by sending one video to my contacts on social media... is it fine and legal? Should I form the company first before sending the video presentation of the concept... as we are not taking any money from anyone... just to analyze the response of the people? Thanks.

Is employer liable for drink-driving of the employee?

Q: Hello, I`m looking for some advice. My husband`s employee who is a Sri Lankan man has had an accident whilst driving a lease car in a hotel car park. Stupidly, he never reported it and went into the hotel where he was staying. In the morning the police came and arrested him. Today he went to court and was given a 26,000 Dirhams fine. It was not possible for my husband to speak to his employee but the police have charged him with drink-driving and leaving the scene of an accident. As my husband is his employer and sponsor, will he have to pay the fine on his behalf? The guy earns 4,000 Dhs per month. The hire car from Diamond Lease has been impounded and won`t be released until the fine is paid and then I guess the company will impose more fines. My poor husband is at his wit`s end and at the courts in Abu Dhabi he cannot find anyone to speak to about the situation. Has anyone experienced anything like this or know who we can turn to for advice? Would be very grateful for any help. Thank you.

Is waiver of end of service gratuity legal in the UAE?

Q: Employee Waiver Agreement, is it legal? Our employer did not pay our final salary and end of service gratuity. They demand that we sign this agreement, and if not, we were told we receive no money. After signing the waiver, the employer has not paid. It appears they never planned to pay. They planned to show the document in the court.

How to sue your employer if you don't have the labour contract

Q: I am Jasim. I filed one case against the company in Dubai Court in commercial dispute category. The company offered me a good position and told me to resign from the previous employer and at last, they sent me the visit visa and told me to join the company. They informed me they started my visa processing. After working for 2 months I did not get my salary and I came to know I was cheated and they had no visa quota due to pending salaries to the employees. Now I am in the 5th hearing stage in the Dubai Court chamber. Now, the judge informed me that my case will be rejected if I do not submit a case transfer paper from the Ministry of Labour Court to Dubai Court. What I have to do now? I had no visa to start the case in Labour Court. I went there first, but they told me to go to Dubai Court since I was on visiting visa.

How to exit from the rental agreement previously entered into

Q: I would like assistance in getting out of a Regus Business Centre rental agreement, which states that I am liable for the entire year`s rent when I had asked for a cancellation early into the contract when my investor for the company had backed out. Is there any way to do so or at least negotiate a small cancellation fee?

Gratuity payment in case of resignation within the first year of employment

Q: If an employee resigns within the first year of employment, is he entitled to a gratuity payment?

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Notification through newspapers in arbitral proceedings

Q: Is an Arbitrator allowed to post a notification on the newspaper if one of the parties to the Arbitral proceeding refuses to respond to the Arbitrator`s call or email for the purpose of delay avoidance? Thank you.

Is employer who delays salaries, liable for bad credit history of the employees?

Q: Good day, I just want to find out. The company does not pay salaries for months. Now I have a bad credit record in the UAE. Can I open a case of defamation because the company is giving me a bad name with the banks and with my landlord who is about to open cases against me?

Refund of a deposit paid by the underage buyer of real estate property

Q: I put a deposit down on two "off-plan" properties. I paid a deposit on both and received a reservation document signed and stamped by the developer. However, at the time of the deposit, I was under the age of 21 which is the minimum age to purchase property in Dubai. Lastly once the deposit was made I never received an SPA or NOC. Have now been sent a notice by Dubai Land Department on the request of the developers for Property Termination procedure. The request was canceled. I am now trying to figure out how to get my deposit back as I believe since I was underage and no formal contract was presented or signed, the agreement is void.

Non-compete clauses in the employment contract

Q: Dear Sir, I`m Satheesh from Abu Dhabi. For the past 3 years, I was working for a free zone company in Dubai. Our company have clients from both Dubai and Abu Dhabi and doing medical billing services for hospitals and medical centres. I was working with one of the company`s clients which is a government hospital in Abu Dhabi (please note - govt is removing our company by Sept.). My concern is that the hospital is interested to recruit me as their employee. But I already signed a limited contract with my company which has "Non-competition non-solicitation agreement". My contract states that I cannot join their clients or competitors for 24 months after my visa expiry or end of service. If I violate this law they will take legal actions and they can ask for compensation (Law no. 8 of 1980 for UAE and Law no. 5 of 1985 for Dubai). My visa is expiring by Aug 25th, so I`d like to join there. Can I join this Abu Dhabi government hospital or not? If I join, is there any legal issue I have to face from my company?

Contractual rights of a former employee

Q: I resigned from my position in October 2016. The company is threatening legal action for soliciting employees and starting my own business to compete with them. All false allegations. I have responded to their lawyers already but I wanted to know if I have a case against them as not all my contractual rights were honoured.

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Legal assistance in merger of companies

Q: I am merging my LLC with another in Dubai and need legal advice on the process, the particulars of joint ownership going forward and future exit.

Refund of advance deposited while purchasing property in Dubai

Q: Hi, I have put 5% deposit on a property in Dubai and I have also paid 2% DLD fees + OQOOD. I have more payments starting in 2 weeks but I can`t afford to continue with the purchase. Am I entitled to any money back?

Responsibility of partners for bounced cheques signed by the company manager

Q: Do the local sponsors have financial responsibility for bounced cheques from the company that they are sponsored? If I got cheques but they were bounced and the person who signed the cheques (managing director) left the country. Company is in labor zone, retail, 2 operating shops.

Rights of the employee terminated within probation period

Q: I am on unlimited contract with my company and this is the 3rd month but if the company terminates me within probation period stating that my performance is not good then do I need to repay the company for visa air tickets and training cost??? During recruitment, the company has got my signature stating that if I leave the company before 3years, I have to repay them visa, airfare and training cost. Please advise me.

Property registration fee in Dubai

Q: Could you tell me please, when property registration fee was changed from 2% to 4% (starting date) and by which law? Thanks in advance. Regards, Alexander