Question: I work for an events company and come into contact with a lot of people. Following a recent event, I caught a bad cold and was too ill to go to work. I took two days off and mostly recovered then and over the weekend.
My employer is now telling me that I will not be paid for the two days as I am still on probation. This is not fair, as I got ill while working. Is it legal for them to pay me for two days less this month? AR, Abu Dhabi
Answer: The entitlement to sick pay is set out in the UAE Labour Law. Article 31, clause 2 states: “The worker shall not be entitled to a paid sick leave during the probationary period. However, the employer may grant him a sick leave without pay, based on a medical report issued by the medical entity that stipulates the necessity of granting the leave.”
This is the minimum requirement, but an employer can still choose to pay an employee. In theory, if someone is unwell due to an illness or injury that arose at work, they should be paid, but this can be impossible to prove in the case of illness.
AR could have picked up a viral infection from anyone. While it may seem likely that it was caught at work in a busy environment, it cannot be proven either way. This means that, despite it seeming harsh, the employer can legally deduct two days of pay in their situation.
Q: I lived in Dubai for a few years and moved back to the UK in January 2024. I own an apartment there and have decided to rent it out as I won’t have time to use it much in the next couple of years.
My questions are whether I have to declare this UAE income now that I am in the UK and if I can avoid being taxed on it? I bought the apartment using my UAE income nearly two years ago. BH, UK
A: BH is a UK citizen and is permanently resident in the UK. Taxation is a complex area, so I can only answer here in brief.
As he is UK resident for tax purposes, he is obliged to disclose all foreign income and gains to His Majesty’s Revenue and Customs (HMRC).
This applies to any income from renting out a property in another country as well as any gain from selling an asset such as a property. It does not matter where the income is paid or if the money never enters the UK.
Any income or capital gain will be added to all UK earnings and taxed at the individual’s marginal rate.
If someone fails to disclose UK tax liabilities in relation to overseas or offshore income and gains, they will be liable to penalties. In addition, if someone is late in paying tax or a penalty, HMRC will charge interest on the outstanding amount.
For deliberately failing to notify overseas income or a gain, the penalty can vary, being up to 200 per cent of the amount due, in addition to the tax payable. Ignorance of the law is not considered a reasonable excuse.
Anyone who is leaving the UAE, or another Gulf country to return to the UK, or any other country where there are income and capital gain taxes, should seek advice as there may be ways to minimise future taxation. At least, they can be made aware of their position and plan accordingly as there are multiple tax-related issues that should be considered.
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Q: I am leaving the country for a few weeks, and my cousin is going to stay in my apartment while I am away. I will be back at the end of September.
My cousin would like to use my car when I am away, but is this allowed by law? If he incurs any traffic fines, who is responsible for paying them? SV, Dubai
A: In theory, SV’s cousin can drive the car, provided he is a UAE resident with a UAE driving licence, but some policies are restricted to named drivers only.
Not all vehicle insurance policies permit any driver. SV should check with his insurance company to clarify and, if necessary, have the cousin added as an authorised driver.
Someone on a tourist visa cannot drive a personally owned vehicle unless they are a first-degree relative of the owner. In this situation, confirmation should also be sought from the insurance company.
If any traffic fines are incurred, the legal responsibility for paying them lies with the owner of the vehicle. The owner is also responsible for any parking fines, Salik or other toll fees, vehicle registration and insurance.
Contact Keren at keren@holbornassets.com or at www.financialuae.com. The advice provided in our columns does not constitute legal advice and is provided for information only
