Expats made redundant warned of perils involved in legal action


  • English
  • Arabic

ABU DHABI // Expatriates who lose their jobs and who want to sue their former employers have been warned to proceed carefully. The Ministry of Interior has told ex-employees that if they fail to adhere to proper legal procedures they could be fined or even deported. It said that disgruntled workers must first take their complaint to the Ministry of Labour. If that fails to resolve the dispute, then they may file a lawsuit with the courts.

However, it stressed that in filing their legal complaint, they had to secure a letter from the court, which they then had to send to both the Department of Naturalisation and Residency and the Ministry of Labour. The letter would confirm they have a legitimate case pending with the court and should be entitled to an extension of their residency visa. Lt Col Rashid al Khadar, the head of the legal affairs department at the Ministry of Interior, said this would allow plaintiffs to remain in the country while awaiting a ruling on their case. Otherwise, they will be considered as being in the country illegally.

Lt Col al Khadar said a worker with a pending case against a former employer could obtain a six-month, temporary work permit from the Ministry of Labour, which could be extended until the court rendered a verdict. He said if a labour case dragged on for several months, the Ministry of Interior could inform the court it did not object to the employee's visa being transferred to a new sponsor. "As long as they have genuine cases against their employers, they will have the full support of the ministry," Lt Col al Khadar said.

Typical claims being filed against employers amid the global economic downturn include failure to pay salaries and gratuities, refusal to cancel labour and residence permits, and asking workers to say they had received end-of-service benefits when they had not. Residency permits are linked to employment and foreign workers are given a month to leave the country when their residence and work permits are cancelled or expire.

"There are so many companies in financial trouble who have terminated the services of their employees without giving them their salaries and end-of-service benefits," said Karunagappally Shamsudeen, an advocate at Al Kabban Advocates and Legal Consultants in Dubai. "Other companies have been sending their workers on a long or extended leave. If they are outside the country for more than six months, they cannot re-enter the country unless they obtain the necessary approval from the immigration authorities.

"I am currently handling 150 labour cases and seven immigration cases. I have a client who has filed a case against his employer. He received a letter from the clinic, which had closed, that his services were no longer required. "He is asking for his salary, gratuity and an additional three-month salary as compensation for arbitrary dismissal." Mr Shamsudeen warned that laid-off workers had to stay in the country to receive their end-of-service benefits, and said it would be difficult for employees to file a complaint once they had signed visa-cancellation forms, as the forms state they had received all their dues from the employer.

He said he had also handled several cases of employers filing false absconding reports and asking the Ministry of Labour to blacklist their workers. Workers who have bank loans and credit card bills have to settle them before leaving the country, Mr Shamsudeen said, as employers normally notify the banks of contract terminations. Under immigration laws, people holding expired or cancelled residence visas are fined Dh25 a day for the first six months.

The fine doubles for the next six months to Dh50 a day. They are Dh100 a day for those who have overstayed by more than a year. People who have illegally stayed in the country after the expiry of their visit visas face a fine of Dh100 a day. But at any point they can be deported on a case-by-case basis. rruiz@thenational.ae

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
'Top Gun: Maverick'

Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
The language of diplomacy in 1853

Treaty of Peace in Perpetuity Agreed Upon by the Chiefs of the Arabian Coast on Behalf of Themselves, Their Heirs and Successors Under the Mediation of the Resident of the Persian Gulf, 1853
(This treaty gave the region the name “Trucial States”.)


We, whose seals are hereunto affixed, Sheikh Sultan bin Suggar, Chief of Rassool-Kheimah, Sheikh Saeed bin Tahnoon, Chief of Aboo Dhebbee, Sheikh Saeed bin Buyte, Chief of Debay, Sheikh Hamid bin Rashed, Chief of Ejman, Sheikh Abdoola bin Rashed, Chief of Umm-ool-Keiweyn, having experienced for a series of years the benefits and advantages resulting from a maritime truce contracted amongst ourselves under the mediation of the Resident in the Persian Gulf and renewed from time to time up to the present period, and being fully impressed, therefore, with a sense of evil consequence formerly arising, from the prosecution of our feuds at sea, whereby our subjects and dependants were prevented from carrying on the pearl fishery in security, and were exposed to interruption and molestation when passing on their lawful occasions, accordingly, we, as aforesaid have determined, for ourselves, our heirs and successors, to conclude together a lasting and inviolable peace from this time forth in perpetuity.

Taken from Britain and Saudi Arabia, 1925-1939: the Imperial Oasis, by Clive Leatherdale

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

UAE currency: the story behind the money in your pockets
Tips on buying property during a pandemic

Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.

While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.

While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar. 

Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.

Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.

Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities. 

Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong. 

Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.

Our Time Has Come
Alyssa Ayres, Oxford University Press

Company profile

Name:​ One Good Thing ​

Founders:​ Bridgett Lau and Micheal Cooke​

Based in:​ Dubai​​ 

Sector:​ e-commerce​

Size: 5​ employees

Stage: ​Looking for seed funding

Investors:​ ​Self-funded and seeking external investors