Questions & Answers - Legal Advice Middle East

Notice period applied in free zones

Q: I have been working in JLT free zone (DMCC) company. As per my employment contract with the company, the notice period is 90 days. However, as per the law, the notice period is 30 days. Could you please advise me which period will prevail in this case?

Upgrading designation and salary upon changing job duties

Q: I am an employee in a company in Dubai since the last two years, with an unlimited contract and my total salary is AED 3000 (Joining date: 01/01/2016). In the first year, I was doing an operational activity in a logistics company like documentation of all import/ export Inquiries (Designation in visa: Client Service Clerk). In addition, I was helping the accountant as an assistant because the management decided that I shall help him in accounts. I am an employee with a postgraduate degree (M.Com Degree). On the 4th January 2017, our accountant (Designation: Accounts Manager) left the company due to personal reasons. His salary was while joining AED 5000, and when he left the company after two years and a half that time was AED 6200. The management asked me to take the position of an accountant and I accepted it. I was thinking that I will get AED 5000 salary of an accountant from the next month, but till this date, after 10 months, I am getting AED 3000. I asked several times to change my designation and upgrade my salary, but they are giving the same answer that the company is at a loss.

I stand as a guarantor for my friend. Am I liable for his bank loan?

Q: I kindly require legal advice. I have a close family member who has multiple loans in the amount of BD 19,000. He was unemployed and the banks threatened him with legal action. He came to me and confirmed he is set to start at a new job and will be able to pay for his loans, BUT needed me to sign as his guarantor so the banks would refinance his loans. Due to the close relation, I agreed. I later learned he never paid a single instalment and also resigned from his job. Now the banks have taken legal action against me. It seems he is unwilling to cooperate with the banks. How can I get out of this mess? A response is highly appreciated.

Dynamic equity split

Q: I am looking to get my tech startup incorporated and I recently read a book called "The Founder`s Dilemma" that talked about the importance of a Dynamic Equity Split. I would like to know if it`s possible here in the UAE, how I would do it and where, and if the lawyer answering this question would personally recommend it.

How can I check the immigration status of my friend who absconded from Dubai?

Q: Hi there, My friend absconded from Dubai in 2008/2009 leaving behind a small amount of credit card debt in Dubai and also left her employment without resigning properly. If my friend was to fly to Doha, Qatar would this cause a problem? My friend has never been chased by the UAE bank and has never heard from. Is it possible to check my friend`s immigration status?

Intentions of employer

Q: Good morning Sir, First of all my name is Brian, I work in an Abu Dhabi company and now our contract is until Nov 30, 2017. Now they make a letter and gave to us stated below, "In accordance to the above contract agreement, it is hereby informed that our service provided at (present location) is due for contract completion effective on 30th of November 2017. "On renewal of the contract our service shall be continued for further period. "However, if the contract is not awarded and our services become redundant, all concerned staff assigned at (present location) shall be processed for cancellation of documents and subsequently prepared for departure." And now they are forcing us to sign the letter, and do not tell the reason for that. Even one of my colleagues has an offer letter, they still didn`t want to release him. What should I do? Should I sign?

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What legal action can I take if my salary is always delayed?

Q: Is there any legal action if I complain on my employer that my salary is always delayed? Like this September salary which until now, end of October, is still not paid. What can I do with this? They always delay the salary.

Is there any career for Company Secretary in the UAE?

Q: Which Corporate and Taxation Laws are applicable in the UAE? I am a Company Secretary from India. Is there any career for Company Secretary in the UAE?

Am I entitled to compensation if my employer asks me to submit resignation?

Q: I have worked in a company for 3 and half years under a contract for an unlimited period. A month ago my employer asked me to sign on a resignation letter with immediate effect. He promised to give me a 3-month salary and other benefits. After a month only gratuity and leave pay have been deposited to my bank account. As per the UAE labour law do I have the right to claim for 3-month salary?

Can the bank deposit my security cheque if I fail to pay 3 loan installments?

Q: Hello, I am 3 months behind on my bank loan with FGB. I have told them that I can pay up 2 months on THURSDAY 2nd Nov 2017. The loan is in my business name and they are threatening to deposit the security cheque of 330,000 Dhs for the outstanding full balance of 250,000 Dhs. Can they do that? Is that even legal?

Can an employer take legal action against me if I withdraw from accepted job offer?

Q: Dear Sir, I accepted a job offer letter (Only organization offer letter) and sent it by email, but now I don`t want to leave my present company. I informed them today (future company) but they replied me... Quote: "DEAR FAIZ, You gave us a word to join our company in date of 30th SEP and this considered as legal contract as it called WORD SAY CONTRACT. We are disappointed as we reject a lot of candidates because of our commitments with you. I do not know what to say but I am assigning my legal department for the same. Thanks" Can they take legal action against me?

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Labor case judgement execution

Q: A labour case was ruled in my favour and I received the judgement at the end of 2016. The judgement progressed to execution and not One Dirham has been paid by my ex-employer to date. We have spent the last year searching assets in all banks, combined with real estate, RTA etc. and all have come back with no assets. An attachment was made on the office assets, shortly after the Rental Dispute Committee issued a Judgement awarding the office assets to the Landlord. Finally, we located a valid Bank Guarantee held with a Government Authority. But the entity is not cooperating. As per Federal Law No. 8 for 1980 On Regulation of Labour Relations, Article 4 gives priority over all assets. However, in this scenario, Federal Labour Law, Dubai Real Estate Laws and further laws are all overlapping and conflicting. My query is, is there a document or law that states which law has priority over another to help resolve the issues I am facing with the judgement execution?

Accommodation and transportation provided by the company

Q: In my offer letter, they have mentioned my salary as basic pay, food allowance and other allowances, but they have mentioned that accommodation and transportation will be provided by the company. I want to know, will they charge for accommodation and transportation or it will be free of cost?

The difference in salaries of previously and recently hired staff

Q: My employer hires new staff with a higher salary than the old staff who have the same work. I just want to ask if that is fair for the old staff?

UAE visas for families where a child was born before the marriage

Q: I am an Indian working in Dubai for past 6 years. I and my Filipina girlfriend had a baby on 17 Dec 2016. She delivered in the Philippines and the baby`s birth certificate was issued in the Philippines. We plan to get married now in Hongkong on 7 Dec 2017. My question is: Will I have any issues for making family visas (my wife and baby under my sponsorship) in Dubai since the baby`s birth certificate date is 17/12/2016 and our marriage date is 07/12/2017?

Do I have a travel ban if my Etisalat bill is unpaid for 1 year?

Q: I have an issue, Etisalat bill is outstanding for 1 year. How to check if there is any travel ban for me?