Gratuity should be paid regardless of circumstances


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I have a credit card issued by Emirates NBD, along with a supplementary card for my wife. A few months ago I paid the entire card balance - according to my statement dated September 30 2009 - by cheque at the Galleria branch. The cheques were subsequently debited from my account two days later. However, the statements of account for October showed that the outstanding balance for the previous month was not paid, and a finance charge and late payment were levied on both cards. I spoke to the call centre and explained the situation. They gave me a complaint number, and told me that they would look into the matter. Two months have passed, and after countless phone calls to their call centre and several visits to their branches they have still not resolved the issue. I'm tired of being passed on between departments and explaining my situation again and again. Can you please help me? BSM Dubai

BSM does not bank with Emirates NBD. Instead, he paid in cheques from another bank, and fortunately, he retained the deposit slips. Copies of these were provided to Emirates NBD, together with a copy of a bank statement showing the amounts having been debited from his account. After investigation, a spokesperson for Emirates NBD stated: "The cardholder had made the payments towards his primary and supplementary cards through two cheques. However, the posting of the payments was delayed as they were posted to the payment account without the credit card numbers. We are pleased to inform you that we have retrieved the card numbers and posted the payments and reversed all the charges. We have also spoken to the customer to clarify the matter and conveyed our apologies for the delay and assured him of our best services in the future. We thank you for bringing this to our attention, and we do give utmost priority in handling complaints from our customers." BSM has confirmed that he is happy with the outcome, and the money has been credited into his account.

Last week you answered a question from a reader who has a UK pension plan. I have one, too, but it's a different type. I have just moved to the UK on secondment from my employer. None of us are sure whether he or I can continue paying into my plan. Can you clarify? JW Dubai I have established that the pension scheme in question is what is known as a "defined contribution", an occupational scheme in which final benefits are based on contributions, rather than a defined benefit (also known as a final salary) programme, under which benefits are based on years of service and salary. A UK employer can make contributions to a UK registered pension scheme for one of its employees working overseas. However, there must be continuous employment and the individual must have a UK employment contract, as opposed to a local one.

I have worked in Dubai for five years, having been transferred from Australia. I have recently been informed that I am to be relocated back to Australia. Am I entitled to the gratuity under the UAE labour law, or do I have to be fired or resign? The annex to my contract mentions that my basic salary includes superannuation/gratuity, but the table is confusing, with figures in both Australian dollars and UAE dirhams, and some comments are actually contradictory. There is no statement about gratuity in the terms of the contract. JA Dubai

From the information provided, it's hard to establish whether JA is on a local contract, although I suspect he is. Ultimately, it depends on the general practice of the employer and the law of the country the employment is conducted in. As JA was transferred to the UAE, with apparently continuous employment, it cannot be assumed that the UAE law will apply. The law is considered to be a matter of public policy, and thus certain cases may be different in other jurisdictions. In addition, the country the employee is being transferred to may contain different regulations regarding the transfer of employees to and from other jurisdictions. The acid test is whether JA's contract, and that of other employees in the UAE, is registered with the Ministry of Labour. If this is indeed the case, it should be deemed a local contract, UAE labour law takes precedence and JA is eligible for an end of service gratuity payment. This is payable regardless of the circumstances surrounding the end of employment (unless in the case of dismissal for illegal behaviour), in which case it would be calculated on the basis of 21 days wages for the first five years of employment, and then 30 days wages for each additional year provided the total does not exceed two years total wages. In sum, if JA is indeed on a local contract, then he is entitled to an end of service gratuity. And if the employer refuses to pay, then he is entitled to take his case to the Ministry of Labour.

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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