‘Do employers have to alert banks when they pay a final salary?’

I have resigned from my job and am working out my notice period. I have another job lined up and will start soon.

I don’t want my bank account to be frozen as I have bills to pay. Does my employer have to tell my bank that it is my last salary payment?

I also have a loan with the bank, although it is not big. Is there anything I can do to stop my account from being blocked? WS, Abu Dhabi

When someone receives their last salary payment before leaving a company, it is standard for it to be marked “final settlement”. The employer is obliged to do this, especially when they are aware someone may have outstanding liabilities such as a personal loan.

Once a bank is informed of a final salary payment, they are likely to freeze an account, especially when there are outstanding liabilities.

The reason for this is to prevent people from withdrawing their money and leaving the country without paying what they owe first.

The timescale for a bank to unfreeze an account varies. If the outstanding debt is small, some banks will unfreeze an account when presented with proof of a new job offer or a new employment visa.

In some cases, a bank will not unfreeze an account until the first salary payment is made.

In a situation where an individual expects an account to be frozen, it would be wise to withdraw some cash before the last salary payment is made so they can manage for a few weeks.

Having a good relationship with a bank and advising them of your circumstances may also be helpful as it shows there is every intention of continuing with the loan repayments. The bank may then be more amenable.

I have been working as a housemaid for a family for four months and the hours are long. I am only given one day off a month and am asked to work at all different hours.

Before I decide to leave and contact the agency that organised this job, I would like to know if I can be made to work these long hours as I am very tired. MV, Abu Dhabi

There are legal limits that relate to the hours all employees can work in the UAE. The rules for domestic workers are set out in Federal Law 10 of 2017 and supported by Cabinet Resolution 22 of 2019.

Article 12 of the law states: “1. The worker shall be entitled to one day of paid rest per week in accordance with the implementing bylaws. He/she may be required to work on a weekly rest day, in which case he/she shall be entitled to an alternative day of rest or payment of the equivalent of a day’s wage. 2. The implementing bylaws shall set the working and rest hours, subject to a minimum of twelve hours of daily rest, of which eight must be consecutive.”

Under the law, it is clear that all domestic staff are entitled to one full day off a week and cannot be asked to work for more than 12 hours during each 24-hour period.

Domestic workers now come under the protection of the Ministry of Human Resources and Emiratisation (MoHRE).

However, MV was employed through an agency and her first port of call should be to contact them to explain her situation as they should have clarified the law with the employer. The agency should explain the law again to the employer to ensure MV works no more than the legal maximum hours and has appropriate time off.

If the agency does not assist MV, she can lodge a formal complaint against them. A complaint about a domestic staffing agency can be made through any Tadbeer Centre, which is tasked with providing domestic worker services under the MoHRE.

Note that domestic workers are also entitled to annual leave under the law and this must be provided and taken.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

‘Do employers have to alert banks when they pay a final salary?’

Companies are obliged to inform lenders of a 'final settlement' payment if an employee is leaving their job

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