Do you need a new visa when changing jobs in the UAE?

Keren Bobker advises a worker who is in a situation that breaks many employment laws in the Emirates having been 'rented' to another company.

I am on a two-year fixed contract with my employer. After being with the company for five months, I did not receive my salary as the company did not have any projects on. The contract does not have a six-month probation period, so technically I cannot change to another job. I asked my boss to let me leave, as they cannot afford to pay me my salary. I found a company willing to "rent" me for one year or until my visa finishes. Now, after working for this new employer, my original boss has called to say he has sold the company and he wants me to pay the cost of a new visa because of a change of administration. My visa from him will end in July this year. He's asking me for Dh7,000 and has threatened to cancel my visa if I refuse. Is what he is doing legal? NC, Abu Dhabi

There are many things wrong with this situation. If someone is on a fixed contract there are penalties if the employment ceases early. If the employer wants to make the employee redundant, they have to pay compensation. If an employee wants to leave before the end of the fixed term they must similarly compensate the employer. The standard 30 days’ notice period applies to all cases, unless a longer period is agreed by both parties, whether or not it is specifically mentioned in a contract of employment. If someone has an employment visa with one company they are not permitted to go and work for another company without a change of visa, so in this case the employee and both employers are at fault and could be penalised by the Ministry of Labour. As mentioned many times in this column, the cost of a residency visa is the responsibility of the employer and should not be passed on to the employee so NC’s original employer cannot demand payment. As several articles of UAE Labour Law have been broken in this case, it is important that the original employer cancels the residency visa and that the current employer applies for the correct one.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years of experience. Contact her at [e-mail]. Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice