UAE companies not required to set aside monies to pay future gratuity payments

There is no law that states that a UAE company has to set aside monies to pay future gratuity payments, although it would be good business and accounting practice to do so.

I work for a private company in Dubai which has more than 100 employees. I am sure that my company is not keeping a gratuity fund separate from its working capital. I wonder what will happen if the company went bankrupt, as things don't seem to be going too well. How can I ask my company to protect my rights regarding my gratuity payment? Is there any relevant law regarding a separate gratuity fund? UK Dubai

There is no law that states that a company has to set aside monies to pay future gratuity payments, although it would be good business and accounting practice to do so. An employee can ask their employer whether they have made provision, but there is no requirement to do so, even though this has been recommended by various employment lawyers over the years.

I renewed my one-year tenancy contract in February 2014. In March 2014, I received a notarised letter from my landlord as he wants me to vacate the apartment at the expiry date of the contract (February 2015). I do not want to leave. What I understand from the Dubai law is that the landlord must provide us with at least a 12-month notice to do so. However, I noticed that I have a clause in my contract addendum which contains provision that allows the landlord to give notice not to renew at the expiry date. It says "In the event that the landlord wishes the tenant to vacate at the end of the tenancy, then he should notify the tenant in writing 60 days prior to the expiry of the contract". Is this clause legal? I have to mention that a) The original contract has been signed by me and the landlord's power of attorney (both original signatures) and b) The contract addendum has been signed by the landlord (and not his power of attorney) and I only signed a scanned copy. Again, is it legal to get the contract signed by the landlord's power of attorney and the addendum scan copy signed by the landlord himself? My original signature is on both documents, but I am not sure in such a case this is legal. MC Dubai

There are a number of errors in the way this landlord is acting. Firstly, the notice to evict must state a specific reason such as the impending sale of the property and the 12 months' notice to vacate must be provided at the time of the renewal of a contract. A landlord cannot ask a tenant to leave simply so that a property can be re-let at a higher rent. In this case as the notice was given after renewal, the 12-month period does not commence until the next renewal date, so the earliest date that MC needs to vacate is February 2016. It is not possible to contract around UAE law and a non-renewal clause is not enforceable. In addition, the law states that a landlord must provide 90 days' notice of any changes, not 60, although this is academic in this case as the tenant can simply be asked to leave. I understand that the signature of an Enduring Power of Attorney is legal, but the contract addendum is not valid under the Landlord and Tenant Law.

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