A few employers are asking departing employees to accept delayed gratuity payments as businesses face financial difficulty. Getty
A few employers are asking departing employees to accept delayed gratuity payments as businesses face financial difficulty. Getty
A few employers are asking departing employees to accept delayed gratuity payments as businesses face financial difficulty. Getty
A few employers are asking departing employees to accept delayed gratuity payments as businesses face financial difficulty. Getty

‘My employer wants to pay my gratuity in delayed instalments. Is this legal?’


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I resigned from my company after working there for eight years. I am owed quite a large sum as my gratuity and was expecting this to be paid when I left the company. However, the owner is asking to pay it over a few months as he claims he does not have the money. Is this legal? What if he does not pay me what I am owed? SN, Dubai

ASN has been working for a mainland company, so UAE Labour Law applies. It is the responsibility of employers to pay all money owed before the employee signs their visa cancellation papers as these confirm that all dues have been paid. An employee is within their rights to request payment in full and should not have to wait.

There is no requirement for employers to set aside funds to pay gratuities, but that would be a sensible course of action to avoid this kind of problem. We are seeing a few cases where employers ask departing employees to accept delayed payments as the business has had financial difficulties but it is, legally speaking, the choice of the worker to accept this.

If an employee is willing to accept delayed payments, it is essential that they obtain the details of when they will be paid in writing. This should be on a signed and stamped document with the company's letterhead that clearly confirms how much will be paid, when and how.

This will provide proof if the employer fails to pay and the person needs to file a case against them with the Ministry of Human Resources and Emiratisation. Note that a case must be registered within a year of leaving a company.

As documents must be signed to cancel a visa, which also state that payments have been made in full, there is always a risk that the ministry will not uphold a claim.

This is why I do not recommend signing cancellation papers unless the employee has been paid in full.

In this situation, SN can file a civil claim in the UAE courts. However, this is far from ideal and not a course of action that any employee should need to take to receive what is rightly owed.

I have a debt worth Dh12,305.97 with a UAE bank. This is a loan converted from a credit card balance. I have failed to make payments and have been in India since October 2020. I have a valid visa that I paid for myself until September 2022. The bank has now cashed my security cheque for Dh24,500, which has bounced. I want to come back to the UAE in March. How can I do this? BC, India

There are a number of issues to address here. BC has not confirmed in which emirate he is a resident and that will affect how a bounced cheque case is treated. In Dubai, a bounced cheque of this size is not a criminal offence, but it is in the other six emirates. This is going to change as per a UAE government announcement in October 2020, but not until 2022.

A visa should be provided by an employer, a sponsor or arranged alongside a trade licence

If BC is not a Dubai resident, the bounced cheque means the bank can register a criminal case against him, which will mean that he will be detained at immigration on attempting to re-enter the UAE. He can check this with the immigration department of the emirate in which he is resident.

If he is a Dubai resident, I would expect the bank to have registered a police case after he missed three months of repayments and that also leads to detention on entering the country.

Banks will take action to recover money owed to them by anyone who fails to make the loan repayments in breach of the terms they agreed to. BC will need to get in touch with his bank to discuss the matter. If he can reach a resolution, they might be willing to cancel the police case. However, I would expect the bank to request a partial repayment before doing so.

BC stated that he paid for his visa and unless he has a business, this will not be legal. A visa should be provided by an employer, a sponsor or arranged alongside a trade licence.

BC should also note that UAE residence visas become invalid if someone is out of the country for 180 days. They are not cancelled, but if he expects to be out the country for longer, which may well be the case due to the debt issues preventing his return, he needs to speak with the relevant immigration department for advice and approval to return to the UAE.

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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UAE currency: the story behind the money in your pockets
MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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CHELSEA'S NEXT FIVE GAMES

Mar 10: Norwich(A)

Mar 13: Newcastle(H)

Mar 16: Lille(A)

Mar 19: Middlesbrough(A)

Apr 2: Brentford(H)

Teams

Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq

Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi

Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag

Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC

Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC

Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium

Format 10 overs per side, matches last for 90 minutes

Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals

UAE currency: the story behind the money in your pockets
THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 
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5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

ACL Elite (West) - fixtures

Monday, Sept 30

Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)

Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

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Coal Black Mornings

Brett Anderson

Little Brown Book Group