Marking the 300th column of On Your Side by Keren Bobker

Illustration by istockphoto.com

For the occasion we are republishing some of this column’s most popular topics. These include answers about returning to the UAE with unpaid bank debt and wanting to leave a job during the first year of service and seek new work. We also revisit how to calculate an end of service gratuity payment and statutory maternity leave in the UAE.

• Can I return to UAE if I have outstanding loan repayments?

Six years ago I took out a personal loan with Emirates NDB, but I had to return to the Philippines for personal reasons. I have now been offered a job in Dubai but I am worried I could have a problem as there are a few outstanding loan repayments. I have called the bank but only get an answering machine, so I cannot find out the balance or arrange payment. I received a final settlement from my employer and this should have been used to pay off most of the loan. I really need to know what I owe and most importantly if my name is on any list that would stop me coming to Dubai or give me problems when I get there. MA Philippines

I passed this query on to my contacts at Emirates NDB who appreciated the urgency and promptly investigated. Just two days later a spokeswoman for the bank advised: “We are pleased to inform you that we have contacted MA and discussed with her the settlement process of her liabilities. Further, we confirm that there is no police case filed against her at this stage. As agreed, she will be arranging for someone in the UAE to coordinate with our collections team on her behalf in order to settle her outstanding liabilities with us.”

• Baby on the way but is a six-month break from work allowed?

I will be having my first child in a few months and would like to know what the law says about taking time off for this. I believe I am entitled to take 100 days of leave, but would like to take a break of six months before returning to work. Am I able to do this and what are the consequences if I do? TJ Abu Dhabi

Article 30 of UAE Labour Law states that “a working woman is entitled to maternity leave with full pay for a period of 45 days including the time before and after delivery, provided that her continuous period of service with the employer should not be less than a year, but if a working woman has not completed the said period, the maternity leave shall be with half pay”. It then goes on to say: “a working woman, on the expiry of the maternity leave, may discontinue work without pay for a maximum period of 100 consecutive or intermittent days if such absence is due to illness which does not enable her to resume work. Such illness shall be evidenced by a medical certificate issued by a medical authority attested by the competent health authority or endorsed by such authorities to the effect that the illness resulted from pregnancy or delivery.” While some companies in the UAE permit employees to take additional time off without pay, there is no entitlement to this under the law and the decision to do so is very much at the employer’s discretion.

• Labour ban applies to all companies beyond free zones

I have been working for a company registered as an LLC in the UAE from January 13 and I will complete my six-month probationary period in July. I am not happy with the present company and I have received an offer from another LLC local company on a higher salary that I would like to take. Please advise me on how to change from my present company without any labour ban or any sort of legal problem. My present company promised me a salary of around Dh5,000, including an incentive that I am never paid due to some company policy that I do not understand. I feel I am trapped with only a low salary to support my family, so how can I get out? SR Dubai

Anyone who decides to leave employment before the end of the first year of service will be subject to an automatic labour ban of six months. In addition, the employer can request a one-year employment ban from the Ministry of Labour. Only those employed in a free zone may move to another employer in the same free zone without any ban. This is because the sponsor is the free zone, not the individual company. If a ban is imposed on someone who has worked for less than one year, this generally cannot be lifted. To change jobs SR must complete one full year of service, including the probationary period, and provided he has at least a high school diploma, the ban can probably be lifted if the new salary is sufficient. The guideline is that the minimum salary in a new job is Dh5,000 for those without a high school diploma, Dh7,000 for diploma holders, and Dh12,000 for bachelor degree holders. If SR considers that his employer has not paid him in full he should approach the Ministry of Labour and have the situation investigated.

• End-of-service gratuities capped at two years

We have an employee who will be retiring shortly, having worked for this company in the UAE for nearly 35 years. None of us were aware that gratuity payments only began in 1980, so we don't know what to pay him. Can you clarify? SB Dubai

According to UAE law, employees who were working before the law came into force in 1980 are not entitled to an end-of-service payment for that period. Gratuity calculations start at 1980 only. However, this is largely academic: Article 132 of the UAE Labour Law says: “The entire total remuneration shall not exceed two years’ pay.” Using the standard calculation of 21 days’ pay for each year of the first five years of service and 30 days’ pay for each additional year, the figure of two years’ pay would easily be exceeded in this case. But the employer can make a larger gratuity payment should they wish to do so.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at [e-mail]

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