Month: April 2018

Franchise Dispute & Mediation in UAE

Mediation has become a popular method in resolving international business disputes which includes franchise dispute and many more.

Mediator is a third party who will get involved once direct negotiation fails in resolving a franchise dispute. The failure will cost both parties as appointing a third party comes at a price.

The job of the mediator will be to assist the parties in reaching a settlement without making any decision instead helping them understand each other’s point of view.

The mediator will summon both parties and listen to their arguments and the case itself furthermore if required will summon each party alone as well.

Their role will include working on sorting out the disputed case areas and areas where they can compromise and agree. The stronger party has of course more chances of winning as compared to weaker party but that can hurt the good will and cost money and time if not settled earliest.

Franchise Dispute and Negotiation in UAE

Franchise is the extension of a business which is distribution of goods and services in countries with their name and license.

Disagreements happen at some point in time in any relationship but what will happen next? Will it get resolved or become worst.

Like any other dispute franchise dispute is also due to the disagreement between franchisee and franchisor which if not resolved can lead to a costly path.

Franchise dispute may happen if the franchisee disagrees with high price for the products and services or the new product line or lacks adequate support or is too controlling.

The easy and economical solution or the way out is that both parties discuss the issues and try to resolve prior to getting third party involved.

If third party gets involved so do emotions and money! The best way to go about it is to be open and making some compromises. Goodwill of the parties is likely to lead to a fair settlement.

It should not be about who wins or who losses in a dispute when it arises instead it should be about understanding each other’s concerns and compromising on equal terms.

Labor Dispute in UAE

Any dispute that arises between the employer and the employee shall be dealt by,

A complaint is filed either by the employer or the employee in the labor department as per Article 6 of labor law which will then summon both parties and settle the dispute. In case the dispute does not get resolved it is then referred to the courts within two weeks of submission of complaint.

The labor court has two circuits which is

a- Minor Circuit
The cases which are worth less than one hundred thousand dirhams (AED100, 000) are dealt by one judge including counter cases regardless of their value

b- Major Circuit
The cases which value exceeds one hundred thousand dirhams (AED 100, 000) are dealt by three judges led by one judge including counter cases regardless of their value

There is a time limitation of one year to initiate an employment case. No complaint from both parties will be eligible for a claim if brought after a year or if they did not follow the procedures.

The court holds a meeting within three days of complaint in which they review and consider the claim from both parties. Furthermore, they might summon a representative of the labor department to investigate more and a notice is sent to both parties

Limited and Unlimited Contract in UAE Labor Law

It is important as an employee that you should familiarize yourself with the labor laws of UAE so you know what you are committing yourself too.

There are two types of labor contracts which are as follows,

1- Limited Contract

This type of contract is for a limited time period which has a start date and an end date which is for two years and cannot exceed the term. It also must mention the notice period either it be a minimum of one month or maximum three months.

The contract will end once it completes two years term, or if both employer and employee mutually agree to end it, or if the employee commits any illegal act as per Article 120 of labor law.

In case if the employer singly wants to terminate the contract or renewed contract earlier with the reason not stated in Article 120 of labor law then the compensation to be given is of three months advance salary or the remaining period of the contract whichever is a lesser amount.

Same applies for the employees if they decide to resign with the reason not stated in Article 121 of labor law then they have to compensate with a half months salary for a period of three months or the remaining period of the contract whichever is a lesser amount.

2- Unlimited Contract

This type of contract has a start date but no end date known as an open contract. It can be terminated by any of the parties either be it the employer or the employee honoring the requirements of the notice may it be the notice period of minimum one month or maximum three months. However with the consent of both parties the contract may be terminated without notice requirements (notice period).

In case if the terminating party does not comply with the notice requirements for the early termination then they will have to face legal charges and compensate the other party.

Interpol Notices

Interpol notices refer to different types of notices which are issued by countries sharing key information about criminal offenders or suspects. By exchanging cooperation between Interpol countries, there is a higher likelihood of ensuring security and law and order. These types of notices which Interpol countries draw to effectively maintain law and order are:

1- Blue Notice
When the requesting country does not know the identity, location or activities of the criminal offender then Blue notice is issued through Interpol. Upon the criminal offender being found, the country informs the requesting country about it.

2- Orange Notice
Orange Notice is primarily issued when a country is in possession of genuine information that an individual or suspect is likely to constitute a threat to a country or commit an act of terror, thereinafter the other country is informed about the suspect being a danger to its security.

3- Red Notice
Red Notice is issued when the person has committed a serious grave criminal offence. Upon request of country, the criminal is placed under surveillance and arrested till extradited to the requesting country.

4- Green Notice
To provide warning and intelligence about the criminal offence committed by the offender.

5- Black Notice
Black Notice is issued in the event that there is a dead body of a person in a member country of Interpol; thereinafter this type of notice is made so as for individuals to identify the dead human body through Black notice

6- Yellow Notice
The notice is issued to locate and identify the missing or unidentifiable person

7- Purple Notice
The issuance of this notice is to seek and identify the methods and equipment’s used by the criminals.