Can a company that feels abandoned withhold payment?


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Please clarify Article 137 of the UAE Labour Law! What constitutes "abandons his work at his own initiative"? A friend has completed a three-year fixed contract and then one additional year on an indefinite basis with the same company. He wants to resign and has been told resignation means he is only entitled to two-thirds of what he would normally receive. Does resigning constitute "abandonment at one's own initiative?" CW No, it absolutely does not. The phrase "abandonment at one's own initiative" refers to people who leave employment without notice, not someone who gives formal written notice in accordance with the requirements of their contract. This, sadly, sounds like another example of an employer trying to bend the law to their benefit. There is nothing in the labour law that states that end-of-service benefits are reduced should someone resign from a position. CW's friend should politely advise his employer that there has been a misunderstanding, but if they refuse to pay his full entitlement, I suggest he contact the Ministry of Labour. May I ask you if you know of any banks in the UAE that will let me open a company account without a resident visa? I have a company account with HSBC here in Lahore, and I would like to open the same account with HSBC here. My bank has written to them but they have not as yet replied. HZK Lahore, Pakistan To my knowledge, it is only possible to open a business account with a bank in the UAE if the company is formally registered here, whether as an LLC, a free zone company or as a recognised branch office of a firm. The banks will require you to produce a trading licence. A few weeks ago I arrived home after work to find that my neighbours, without my permission, had entered my garden and cut down some trees that were slightly overhanging onto their property. This has damaged the trees and reduced my privacy. When I spoke to my neighbours they just shrugged and said it was done now and the trees would grow back. Do I have any rights here, and is there anything I can do to stop them doing this again? IE Dubai You certainly do have rights. Your neighbours were trespassing, and they have illegally damaged your property. If they do so again, you should call the police immediately. Unfortunately, the damage has been done, but you can contact Dubai Municipality and ask them to get involved. If the trees are proven to be on your property according to the plans held by the Municipality, then you have the right to request damages from your neighbours in the amount determined by the Municipality. Both owners and tenants may take this action. I rented an apartment in October last year and paid the rent in one cheque, as I received a discount for doing so. I have now been given the option to transfer to my company's office in Cairo, which I would like to do. I have spoken to the agents who arranged the rental and they have said that if I want to leave early I am not entitled to a refund. This seems very unfair, so can you tell me what I can do about it? GW Al Ain You signed a contract for a full year, so if you vacate early you are not entitled to a refund. The contract is legally binding on both parties and is also designed to protect you from being asked to leave early should it suit the landlord. Neither party may terminate the contract without the consent of the other party. My suggestion: ask the landlord if you could be released from the obligation and receive a refund if you find him a replacement tenant. As he would not be financially disadvantaged there is a good chance he would agree and I know of a few cases where this has been the case. Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Write to her at keren@holbornassets.com Letters can also be sent to onyourside@thenational.ae

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