I have been offered a new job with another company but it means I have to break my contract two months before the end of the actual time. As it is close to the end, do I still have to pay my current company 45 days of my salary and allowances? ZA, Dubai
When someone is on a fixed term contract and wishes to leave employment before the agreed end date, it does not matter when this happens as the same penalty will apply. Article 116 of UAE Labour Law states, 'should the contract be rescinded by the worker… the worker shall be bound to compensate the employer for the loss incurred thereto by reason of the rescission of the contract, provided that the amount of compensation does not exceed the wage of half a month for the period of three months, or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.' In this case, the payment would be equivalent to fewer than 45 days' salary as it would be calculated as half a month for the remaining two months, so roughly equivalent to 30 days' salary. Whilst it is not specified in law, these days the term 'wages' is considered to mean both basic salary and any regular allowances. Any End of Service Gratuity due is forfeit if someone breaks a fixed term contract with fewer than five years of service. This is per Article 138 which says, 'should the worker bound by an employment contract with determined term leave his work by his own choice prior to the expiry of the contract, he shall not be entitled to an end of service gratuity unless the duration of the service period exceeds five years.'
It would be in ZA’s interest to see out the full term of his contract, especially as he has to give 30 days’ notice anyway. Provided he notifies the current employer that he will not be renewing the contract, if he works until the current contract is complete he will have no penalties to pay upon leaving employment.
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I have a Smart Saver credit card with Mashreq Bank and want to know how I can access the Marhaba Lounge at Dubai airport. Is any registration required and what is the procedure? IJ, Dubai
Many credit cards have such benefits and in this case the relevant information can be found on the bank's website which advises that access is via the LoungeKey Programme. Details of eligible airport lounges can be found at https://www.loungekey.com. Card holders need to register to use the service, using a link provided by their bank so if IJ does not have this he will need to request it from his own bank. The FAQ section of the Lounge Key page provides further information regarding usage.
I have been working for a company for four years but I have not received any salary for three months so I do not want to renew my visa. On 9th November I gave them my notice and they have not paid me anything yet. No salary, no final settlement even though I have finished my notice period. What can I do to get my money and can the company get in trouble? Can I get a ban in this situation? RK, Abu Dhabi
RK’s employer is breaking the law in not paying salaries in a timely manner and not paying the end of service benefits that are due. He therefore needs to register a case at the Ministry of Human Resources and Emiratisation MHRE), or his local labour office, as a matter of urgency. The MHRE helpline number is 800 665. If an employer has failed to pay salaries there are various consequences.
The payment of salaries should be monitored by the Wages Protection System and this should flag up the late, or non, payment of salaries so that companies can be penalised. The system was introduced in 2009 and backed up by Ministerial Decree in 2016 which stated, ‘An employer shall be deemed as late in paying wages if the wage is not paid to the employee within 10 days of the due date; and an employer shall be deemed as refusing to pay wages if the wage is not paid to the employee within one month of the due date (unless a shorter term is provided for in the contract).’ Companies that do not comply will initially receive a warning, then they will not be granted any new visas, and the Ministry can even use the employer’s bank guarantee.
Whilst employment bans still exist, RK would not receive a ban for leaving employment at the end of a fixed term contract. Even if he was to part way through a contact he would still be free to leave without any kind of employment ban as he has not been paid by his employer for three months. If an employee is not paid for three consecutive months, they should not receive a ban, no matter the circumstances of their departure.
Keren Bobker is an independent financial adviser and Senior Partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
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Company%20Profile
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Company%20Profile
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
POSSIBLE ENGLAND EURO 2020 SQUAD
Goalkeepers: Jordan Pickford, Nick Pope, Dean Henderson.
Defenders: Trent Alexander-Arnold, Kieran Trippier, Joe Gomez, John Stones, Harry Maguire, Tyrone Mings, Ben Chilwell, Fabian Delph.
Midfielders: Declan Rice, Harry Winks, Jordan Henderson, Ross Barkley, Mason Mount, Alex Oxlade-Chamberlain.
Forwards: Harry Kane, Raheem Sterling, Marcus Rashford, Jadon Sancho, Tammy Abraham, Callum Hudson-Odoi.
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
COMPANY%20PROFILE
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A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
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