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Queries on Dues

Our legal expert Saif Saeed of The Legal Group, Advocates and Legal Consultants, will be happy to answer your queries regarding labour laws, visa, transfer of sponsorship and other related issues in the UAE and suggest possible courses of action to meet your legal problems. Listed below are some of the legal issues explored by the expert. Submit your legal queries or fax your queries to 06-5532737. You can also call the Legal Group on 04-2975222 or fax them at 04-2975333.
Also refer: Employment and Labour Laws in UAE - I



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Queries on Dues

Claiming Insurance
Leave Salary
Compensation
Dues
Leave Salary
Gratuity rules in Free zone
Claiming Gratuity
Claiming Dues legally
Claiming Dues
Leave Salary
Claiming Dues Legally
Entitled gratuity
Deduction in salary
Receiving only part of salary
Collecting one's dues
Overtime
Claiming Dues
Unclaimed Annual Dues
Leave Salary
Gratuity
Severance Pay
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Queries on Dues

The brother of Mohammed Ashkaf is working as labourer in Dubai met with an accident while operating a machine. He lost 2 fingers on his left hand and has submitted an insurance claim for 30% disability. However, the company has not taken any action since last 3 months. Mohammed therefore wants to know the best way to claim the insurance.

If the company refuses to process his insurance claim, Mohammed should file a civil case. Since he cannot file a case on behalf of his brother, Mohammed can give a power of attorney to a legal consultant who can handle his case in the court.
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Anita is working in Dubai since 1996 and she was told that leave salary is calculated on the basis of 22 months work and 2 months leave. She wants to know whether it is true or false.

Given below is article 75 of UAE's labour law deals with leave salary.

Every worker shall, within each year of service, be granted a period of annual leave of not less than:

(a) two a month, where the worker's period of service is more than six month but less than one year;

(b) 30 days a year, where the worker's period of service is more than one year.

Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.

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Ms. Jacob worked in Dubai as an electrical engineer on a limited contract. She resigned after five months due to her pregnancy and her employer accepted the resignation but didn't pay her salary for 1 month and asked her to pay back 15 days salary. She wants to know whether it is legal.

Here is article 116 of the UAE"s labour laws which deals with compensation for breaking limited contract.

"Where a contract is revoke by the worker for reasons other than those specified in article (121), he shall be required to compensate the employer for any prejudice the latter sustain as a result: provided that the amount of compensation shall not exceed half the worker's remuneration for three months or the residual period of the contract whichever is shorter unless the contract contains a provision to the contrary."

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Senthil Prabu was working in Dubai Internet City since November 2001. However, his services have been terminated without settling his dues. Senthil Prabu therefore wants to know how he can claim the same.

Senthil should register a complaint with the Dubai Internet City authorities.

The DIC administration will call the employer and ask them to settle his dues. If that doesn't work, Senthil can file a civil case against the employer to claim his dues as per his contract terms.

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Hajid wants to know the leave salary calculated at the time of termination or resignation of the employee. He also wants to know whether it is calculated on basic wage or wage plus allowances.

Here is the article 75 of the UAE Labour Law which deals with leave salary.

Every worker shall, within each year of service, be granted a period of annual leave of not less than:

a) two days a month, where the worker's period of service is more than six months but less than one year;

b) 30 days a year, where the worker's period of service is more than one year.

Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.

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Girish Iyer who represents a German company in Jebel Ali Free Zone states that the company recruited many employees in 1996 with the employment contract mentioning gratuity as seven days per annum. However, the employees now are claiming gratuity as per UAE labour law which is 21 days salary per year up to five years and 30 days salary per year from the sixth year. Girish Iyer wants to know whether the employees can claim gratuity as per the labour law or as per the rules of free zone.

If employees have signed contracts which state that they agree for seven days' gratuity then they will have to abide by that. Moreover, as per the rule 9-11 for operating in the Jebel Ali Free Zone:

"The Free Zone Authority is responsible for solving any labour dispute arising between the licencee and the employee. Where the administration department staff fail to make the two parties reach agreement, then the administration department management shall convene a committee to address the dispute. The committee shall comprise at least four senior members of the department."

"The decision of the committee shall be binding on both the licencee and the employee."

Girish should therefore contact the Free Zone Authority to settle labour disputes.

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Katarina Ballinger is working in Dubai on a limited two years' contract but she resigned after one-and-a-half years. She wants to know the gratuity and other benefits she is entitled for.

Katrina can claim gratuity and leave salary as per the following article of UAE's labour laws.

Article 132 of the labour law deals with the severance pay or gratuity. The worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment.

The severance pay shall be calculated as follows:
1) 21 days' remuneration for each year of the first five years of service.
2) 30 days' remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed two years remuneration.

According to article 137, if an employee who is bound by a contract of unlimited duration leaves his work on his own after continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article. Where the continuous period of service exceeds three years but does not exceed five years, he shall be entitled to two-thirds of such severance pay. Where the continuous period of service exceeds five years, he shall entitled to the full severance pay.

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Sayed Akil Ahmed working as a retail supervisor in Dubai has been informed verbally by his employer that his service has been terminated. He wants to know whether he should approach the court if the employer refuses to give his dues.

If his employer refuses to give him his dues, Sayed should lodge a complaint with the Ministry of Labour and Social Affairs. Sayed can pursue the case in the court after the ministry refers his complaint to the court.
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Nadia has been working in a British company in Dubai airport free zone since March 2002 but the company terminated her services due to re-structuring. She wants to know what benefits she can claim from the company.

Nadia can claim all the benefits as outlined in her contract with the company. If the company fails to give her dues as per the contract, she should contact the Dubai airport free zone authority because the UAE's labour law does not apply to companies in the free zones.
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Ramaseshan, financial controller of a company in Dubai, wants to know the exact leave salary the company has to pay to one of their employees. The employee has joined the company in December 2000 and is planning to go on 30 days leave and therefore Ramaseshan wants to know the leave salary payable till October 2002.

Article 75 of UAE labour law which deals with leave salary is given below for the ready reference of Ramaseshan. "Every worker shall, within each year of service, be granted a period of annual leave of not less than: i) two a month, where the worker's period of service is more than six months but less than one year; ii) 30 days a year, where the worker's period of service is more than one year. Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year." Being the financial controller, Ramaseshan should be able to calculate the leave salary for the concerned employee as we do not consider it our job to calculate the precise amount due to individual employees.
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Shasam has been working in a private company as manager for the last 22 years. The company's sponsor deceived him by making him sign a statement that he received his dues including his gratuity. After obtaining the statement the sponsor refuses to give him his dues and to transfer his sponsorship to another company. Shasam wants to know what he can do about it.

This is a case of cheating and therefore Shasam should file a criminal case against the party. Since he has signed the statement stating that he has received his dues, the Ministry of Labour may not entertain a complaint from him. However, Shasam can also file a civil case against the sponsor to claim his dues along with interest from due date.
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Muneer has worked in Dubai for more than four years. He wants to know the gratuity he is entitled for.

The relevant article from UAE's Labour Law which deals with gratuity is given below:
Article 132 of the labour law deals with the severance or gratuity. The worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment.
The severance pay shall be calculated as follows:
1) 21 day's remuneration for each year of the first 5 years of service.
2) 30 days remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed 2 years remuneration.
According to article 137, a person who is bound by a contract of unlimited duration leaves his work on his own accord after continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article.
Where the continuous period of service exceeds three years but does not exceed five years, he shall be entitled to two third of such severance pay. Where the continuous period of service exceeds five years, he shall entitled to the full severance pay. Muneer can therefore claim his gratuity as per above law and not as per his employer's decisions.

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Xavier who is working as a sales executive in a shipping company complains that his company is deducting 50 per cent of his salary since last two months. He wants to know whether it is legal for a company to deduct salary. He also wants to know what steps he can take to stop the company from deducting his salary.

Here is article 60 of UAE's Labour Law concerning the wages of employees.

No amount of money may be deducted from a worker's remuneration in respect of private claims, except in the following cases;

a) the recovery of advances or amount of money paid to the worker in excess of his entitlements, on condition that the amount deducted in this case not exceed 10 per cent of his periodic remuneration;

b) contributions which the worker is required by law to pay from his remuneration, eg. towards social security and insurance schemes;

c) the workers contributions to a saving fund or repayment of advances repayable thereto;

d) contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the labour department;

e) fines imposed upon the worker for any offense he has committed;

f) any debt payable in execution of the judgment of a court of law;

Provided that the deduction shall not exceed one-quarter of the workers remuneration. Where two or more debts are payable, the maximum shall be half the workers remuneration and the sums of money attached shall be divided pro rata among the beneficiaries, after payment of any legal alimony at the rate of one-quarter of the workers remuneration.

Xavier can complain to the Ministry of Labour and Social Affairs if the company continues to deduct his salary.
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HRK who is working in an advertising agency in the UAE complains that his employer is giving him only part of his salary for the last 3 years. He wants to leave his job and go back to his country. Therefore, he wants to know how he can recover his balance salary, gratuity and other dues.

HRK should file a complaint with the Ministry of Labour and Social Affairs which will try to resolve the matter failing which the ministry will transfer the case to the court. HRK can appoint a lawyer to handle his case in the court.
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Sarath Silva from Sri Lanka who is working as a security guard in Dubai resigned his job after a 45-day notice period. However, his employer has threatened him not to pay his salary and dues if he leaves. He wants to know how he can collect his dues.

If Sarath Silva has resigned while on a limited contract, his employer can ask for compensation. But if Sarath has resigned with due notice while on an unlimited contract, the employer has no right to detain him or threaten him with non-payment of salary and benefits. Sarath should lodge a complaint with the Ministry of Labour and Social Affairs to claim his salary and other benefits due to him.
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Abdul Kashem Mohammed Hannan who is working as a security guard in Dubai is forced to work 12 hours a day without any weekly day off. His company even denied him Eid Al Adha holidays during which he had to work overtime without any leave. He wants to know his rights in this regard.

As per article 65 of UAE's Labour Law, maximum normal hours of adult workers shall be eight hours a day or 48 hours a week. Articles 67, 68, 69 and 70 deals with overtime. As per article 67, where the circumstances of the work requires a worker to work more than the normal number of hours any period worked in excess shall be treated as overtime, for which the worker shall receive remuneration equal to that corresponding to his normal hours of work, plus a supplement of at least 25 percent of the remuneration. According to article 68 where the circumstances of the work require a worker to work overtime between 9pm-4am he shall be entitled in respect of such overtime to the remuneration stipulated for his normal hours of work, plus a supplement of at least 50 per cent of the remuneration.

According to article 69, the normal hours of overtime shall not exceed two a day, unless work is necessary to prevent the occurrence of substantial loss or a serious accident or to eliminate or alleviate its consequences. According to article 70, Friday shall be rest day for all workers except daily paid workers.

Where the circumstances require a worker to work on this day or receive his basic remuneration for his normal hours of work plus a supplement of at least 50 per cent of the remuneration.
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Dhanalakshmi who is sponsored by her husband has been working as a system analyst for a software firm since August 2000. She has an appointment letter for the same but she does not have a labour card. She has not received her salary from November 2001 and she want to know how she can claim the same.

Housewives are allowed to work only with a work permit from the Ministry of Labour. these who work without a valid contract can still claim their salary. Dhanalakshmi can file a civil case against her employer if she has enough evidence.
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MIL Villaflor, working as head of finance department, wants to know whether failure to use vacation leave accrued up to three years can lead to its forfeiture.

According to Article 75 of the UAE's Labour Law, every worker shall, within each year of service, be granted a period of annual leave of not less than:
(a)two days a month where the worker's period of service is more than six months but less than one year;
(b)30 days a year where the worker's period of service is more than one year.
Employees should claim their leave salary as per the above law. However, according to Article 76 of the Labour Law, the employer may fix the rate of commencement of annual leave and if necessary, divide such leave into not more than two periods.
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Nenette Ycay, working in a factory in Dubai since 1998 wants to know how much leave salary he is entitled to. Since he doesn't want to renew his contract, he also wants to know whether non-renewal of the visa can be treated as resignation.

According to Article 75 of the UAE's Labour Law, every worker shall, within each year of service, be granted a period of annual leave of not less than:
(a) two days a month where the worker's period of service is more than six months but less than one year;
(b) 30 days a year where the worker's period of service is more than one year.
As regards the second query, non renewal of visa cannot be treated as resignation.
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Tiny is working in Dubai on an unlimited contract for the last two years. He wants to know how much gratuity he is entitled to.

Article 132 of the labour law deals with the severance pay or gratuity. The worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The severance pay shall be calculated as follows:
1.21 day's remuneration for each year of the first 5 years of service.
2. 30 day's remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed 2 year's remuneration.
As per article 137, who is bound by a contract of unlimited duration leaves his work of his own accord after continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article. Where the continuous period of service exceeds three years but does not exceed five years, he shall be entitled to two third of such severance pay. Where the continuous period of service exceeds five years, he shall be entitled to the full severance pay.
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Dulcie who is working in the UAE for the last six years is planning to leave the company. He wants to know how much severance pay and other benefits he can expect.

Article 132 of the labour law deal with the severance pay or gratuity. The worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The severance pay shall be calculated as follows:

  • 21 day's remuneration for each year of the first five years of service.
  • 30 day's remuneration for each additional year of service provide that the aggregate amount of severance pay shall not exceed two years' remuneration.
  • As per article 137, if a person bound by a contract of unlimited duration leaves his work of his own accord after continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article. Where the continuous period of service exceeds three years but does not exceed five years, he shall be entitled to two third of such severance pay. Where the continuous period of service exceeds five years, he shall be entitled to the full severance pay.

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