On Your Side: Avoid hotels for the best currency rates

Plus questions about residency requirements to retain tax-exempt status, agency fees for renewing a lease, medical insurance and injuries at work answered by The National's consumer advocate.

I recently stayed at Le Royal Meridian hotel in Abu Dhabi and while I was there I asked staff about changing some British pounds that I happened to have with me following a recent trip. Although I didn't expect the best rates, I thought it would be convenient and it wasn't a large sum. I was very surprised by the rate offered. The hotel's standard exchange rate for pounds to dirhams was quoted at just 5.09. As this seemed so poor, I went out my way to check with some exchange houses and their rates were closer to 5.65. How does the hotel justify this massive discrepancy? CP, Sharjah

I put the query to the hotel and the general manager replied: "It is common practice in the Middle East for hotels to charge a commission on foreign exchange rates, solely for the purpose of covering the hotels' exposure to currency fluctuations. Hence the difference in the rates offered to your reader by another exchange house versus the hotel rates." Hotel residents should be wary of rates offered and seek to use recognised exchange services instead.

I am leaving Dubai in a week as I have lost my job. I want to transfer a sum of money, approximately Dh70,000, to my UK bank account. Will this figure be taxed in the UK in April? I've heard differing stories. I have an Individual Savings Account (ISA) where I can put £5,340 (Dh30,307) if this makes a difference? Also, I've been away from London since July 2009 and plan on returning there but would not start work until April of this year if at all. How can I avoid paying tax on the sum I wish to transfer? DM, Dubai

Without knowing all the details, the facts are that you may spend up to 90 days in the UK in the current tax year, ending April 5, 2012, before you will be considered resident. Therefore, if you have spent any time in the UK since April 6, 2011, you may wish to consider delaying your return. If you spend more than 90 days in the UK then you could be taxed on all overseas income earned during the tax year. If you retain non-resident status you can transfer this income to the UK without paying income tax. As you are not UK resident, for tax purposes in the current year you cannot make any contributions to an ISA until the next tax year.

I work for a company that has branches in both Dubai and Abu Dhabi and I have chosen to live in Dubai as I work there most of the time with a weekly trip to Abu Dhabi. I have an Abu Dhabi residency visa as the main office is there. The HR department has now told me that as I have chosen to live in Dubai I will no longer be offered membership of the company medical insurance scheme as this only applies to Abu Dhabi residents. Can the company do this? LF, Dubai

The law states that anyone who is on an Abu Dhabi visa must be provided with medical insurance by his or her employer. Where you actually choose to live is irrelevant, as it is your visa that dictates residency. You are on an Abu Dhabi visa as that is where your employer has their trade licence. The law also states that medical cover must also be provided for the employee's wife and family, including children below the age of 18, up to a maximum of three. If a contract of employment states that the employer provides medical cover, they are obliged to comply with this condition.

I work in a warehouse and I hurt my back and arm when moving some very heavy boxes. I was ordered to do this by my manager, but I now have pain in my back and a damaged tendon in my arm. I have been told by the doctor to rest for a few weeks and then I should be OK again. I got a medical certificate and a letter from my doctor but my company is saying they will only pay me for one week if I am not at work and is threatening to terminate my employment. This is not fair, but is it legal? Please help me. KP, Dubai

KP has been with his employer for two years and as such, under UAE Labour Law (Article 83) he is entitled to be paid in full for the first 15 days of sick leave and at half pay for the next 30 days. This is the minimum prescribed in law, but as KP was injured while undertaking his work duties he may not be made redundant during this time. A recent case which went through the Dubai courts confirmed the legal principles in such cases stating that an employee who suffers injury while on duty will be entitled to all official benefits while receiving treatment and remains off-duty. The employer has a duty of care to an employee and has a responsibility for their welfare while in work as stated in the Labour Law.

I have been in Dubai for nearly a year and our rent is up for renewal. When you renew your tenancy contract is it usual to pay the 5 per cent commission to the agency again? I haven't been through this before, but the agent is asking for payment to prepare the paperwork. It seems like a lot of money to do very little, but I have no idea what the law says in the UAE about this. HA, Dubai

It is certainly not usual for agents to be paid commission for a renewal of a lease and there is no requirement for you to pay this. I understand that it is against the rules set out by RERA, the Real Estate Regulatory Authority and it is also unreasonable to charge more than Dh500 to prepare a revised tenancy contract.

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