UAE legal Q&As: Telecoms company says I must pay year of fees

A reader asks about exiting a mobile phone contract, while another wants to know where they stand after signing a freelance contract.

Q: I visited a branch of Etisalat and bought a post-paid mobile line. The employees there assured me that I could cancel it at any time. One week later, I requested the cancellation of the line only to be told that I would have to pay the fees for a whole year as I had signed up for a long-term contract. They are saying I must pay Dh2,700 for services I will not use. What should I do?

A: Etisalat, and any other telecoms company, offer discounted services to customers on the basis that they sign up for a prolonged period of time, such as 12 or even 24 months. These companies can offer better priced services in the knowledge that they have customers tied down for a certain period of time. A post-paid line for two months, for instance, would not be offered with the same discounts as one for a longer duration. So, the customer cannot terminate the contract before the agreed time mentioned in the terms and conditions of the contract. You need to check the details of the contract to establish the exact procedure for termination. If you feel that the employees misinformed you, that is a matter you could complain to Etisalat about but, ultimately, if you have signed a contract that locks you in for a year and means you have to pay a year’s worth of fees to terminate the contract, there’s not much that can be done about that. This reinforces how important it is to always check the small print on any contract you enter into.

Q: I joined a new company, which gave me a “freelance” contract. I would like to know if this sort of contract is legal?

A: The company is not breaking the law by offering this type of contract, especially if you have agreed to it and signed it. If it is an open contract without a date of expiration then you are entitled to all your rights as an employee of this company, such as end of service benefits, regardless of whether it says freelance or whatever else. It will be important for you to be able to prove that you have been an employee of the company though and that you have been receiving your monthly wages from them, if you were to launch a case against the company. However, if the contract is dated, with your work only being for a certain period of time after which the contract expires, then you are not entitled to any of these rights as it is just a temporary contract.

If you have a question for our lawyer, please email it to [e-mail] with the subject line “Know the law”.