Inheritance Law in UAE for Expats

Inheritance Law in UAE for Expats | Hire Inheritance Lawyer in Dubai UAE

United Arab Emirates is a desirable country of dreams, for residence for many citizens of other countries, a country that is distinguished by hospitality to all nations in the world, a country that has managed to create an atmosphere of goodwill and mutual respect among different nationalities, a country that has managed to attract investors and workers from many countries around the world. Due to this, about 90% of the population of the UAE are expats, many of whom have been successfully living, working and having business in the Emirates for many years, while others have invested in the local real estate market in order to obtain a stable income from renting out real estate.

Sooner or later, expats are like to face the issue of inheriting property. It is good if the owners of various types of property have taken care of these issues in advance, and it is better to take care of this issue in advance, why, we will discuss in this article.

Despite the incredible progress of the Emirates in the implementation of Western institutions of law, the prevailing rules of law are Sharia laws, which underlie all the legislation of the UAE, which many expats forget or simply do not think about, feeling so comfortable in the UAE like in their home countries or even better.

Therefore, it is very important to understand the cultural and social differences that effects the legislation of the UAE.

The principal source of law of inheritance in UAE is Sharia and on this basis, Federal Laws bases. Main laws governing succession are Federal Law Number 5 of 1985 concerning the Civil Transactions Code and Federal Law Number 28 of 2005 regarding the Personal Status Law.

Article 1(2) of the Personal Law states that the law will be applicable on all the citizens of UAE unless a non-Muslim foreign national have special provisions according to their community, which empowers the foreigner to have a choice of the law and avoid application of Sharia. Simultaneously, Article 17 of the Civil Law states that the inheritance will be governed by the law of the testator at the time of his death.

The Personal Law in UAE permits the non-Muslim to draft a will and divide the property according to their will. However, if a foreign national dies without a will, the Civil Law and the Personal Law will allow the courts to distribute the assets of the deceased according to the principles of Sharia.

According to Article 17(1) of the Civil Law, the inheritance will be regulated by the law of the deceased during the time of his death, whereas, Article 17(5) of the Civil Law states that the UAE law will be applicable on non-Muslim expatriate wills regarding the property located in the country. In addition to this, Article 1(2) of the Personal Law states that the law will be applicable to non-Muslim unless he elects otherwise. Thus, if a non-Muslim foreign national die in the state are leaving the real property or other assets in the country, his home country law can be applicable, and his heirs can request the court accordingly. However, there is a restriction on dealing with the assets for property located in UAE.

On November 2020 President His Highness Sheikh Khalifa Bin Zayed Al Nahyan approved a number of Presidential Decrees amending the Personal Status Law, Federal Penal Code and the Federal Penal Procedural Law with immediate effect.

These amendments illustrate a shift from UAE based Sharia law towards a more secular system. Changes include the decriminalization of suicide, cohabitation of unmarried couples and reforms to the inheritance and divorce laws.

The innovations approved by the UAE President His Highness Sheikh Khalifa Bin Zayed Al Nahyan, were enthusiastically received by expats, as they create even more comfortable and familiar conditions for them to live, study and work in UAE. It was a positive and bold step by the Government of UAE.

Expatriates can now use the laws of their own country or nationality to deal with their personal estate and their assets would no longer be automatically divided under Islamic law. Previously, unless official legal measures were taken, the Sharia Law of Inheritance was applied to the estates of expats who passed away. This meant that assets were distributed according to Sharia law and even the custodianship of children was subject to the same laws.

Now, if a person dies in the UAE without a will in place, their estate will be divided as per the applicable law according to their citizenship – regardless of their religion.

The only exception here applies to the properties which are owned by the person within the UAE. These properties will be managed and divided according to UAE laws.

It is important to have a solid estate plan in place to ensure that your loved ones receive your assets. A will in the UAE is the simplest way for an expat to ensure their assets will be transferred as per their wishes.

Before the new changes to the inheritance law, if a person dies without a will, this can cause issues. Sharia law will be applied to any assets that are held in the UAE and this causes most complications in the event of a person’s death. Anyway, the assets will be frozen and will only be released upon the advice of the local courts. Any UAE bank accounts in the person`s name will also be frozen, even those in joint names, and vehicles in his name will be impounded. This happens very quickly and you should be prepared to it in advance. All women should have access to a bank account in their sole name, either here or in their home country, so as not to be left without a livelihood.

At this moment, the law enforcement practice of new changes in laws is in the stage of formation and it would be reasonable to consider how a non-Muslim can draw up a will before the adoption of new laws.

In the UAE, non-Muslims can draw up and register wills for their UAE assets that follow common law. In Dubai, wills can be notarized and registered in the Dubai Courts or at the DIFC Wills Service Centre and the Non-Muslim Wills & Probates Office at the Abu Dhabi Judicial Department. Will registered with the Dubai Courts apply to all Emirates, the will registered with the DIFC Wills Service Centre apply only to Dubai and Ras Al Khaim. However, in reality sometimes happens, that validity of the wills notarized and registered in the Dubai Courts decides by the court during probate.

Eligible individuals have the option to register different types of wills at the DIFC Courts Wills Registry for non-Muslims depending on the assets they wish to cover and whether or not the will is to encompass guardianship arrangements. There are currently five types of ‘DIFC Courts Will’ that can be registered, referred to as the ‘Guardianship Will’, ‘Property Will’, ‘Business Owners Will’, the ‘Financial Assets Will’ and the ‘Full Will’.

To register a DIFC Courts Will you must satisfy listed criteria:

  • You are not a Muslim, and have never been a Muslim.
  • You are over 21 years of age.
  • You own assets within the UAE.
  • Any children for which you wish to appoint guardians for must be habitually resident in the UAE.

Many expats may wonder, do I need a lawyer to prepare a will, and that is the right question. Given the diversity of assets that may be owned by a person who wishes to draw up a will, real estate, an operating business, financial liabilities, intangible assets, bank accounts, etc., we recommend to have a consultation with a lawyer before drawing up the will in order to avoid mistakes that will become irreparable in the future.

 

Compensation for Occupational Injury

Employees Compensation for Occupational Injury | Injury Lawyer in Dubai UAE

Federal Law No. 8 of 1980, UAE Labor law outlines employee’s right of compensation if they suffer injury at work. Under this law, employers are liable for workplace injuries sustained by employees.

Workplace injuries are defined broadly to include any accident sustained by the employee during their work or as a result of performing their work.

In addition to employees’ rights under the Federal Law No. 8 of 1980, employees can also bring claim against the employer under Federal Law No. 5 of 1987 (UAE Civil Code). However, under the Civil Code, the employee must prove the fault or negligence on the part of the employer in order to claim successfully.

UAE law guarantees safety of employee during work and therefore impose upon employers to ensure safety working environment to its employees. Employers are mandated by law to provide and have suitable health and safety guidelines in place, including policies and proper incident report protocol in order to promptly address and comply with the mandate of the Labor Law.

Below is the summary of the procedure and corresponding guarantees provided under the Labor law:

  1. In the event of injury sustained during employment, report must be immediately made by employees to the police and Labor Department or local office who has jurisdiction in the area where the injury took place. Investigation will be carried out thereafter.
  2. Copy of Investigation report will be sent by the police to the Labor Department and another to the employer.
  3. In cases of labor accidents, the employer shall be liable to pay for the treatment of the employee which includes hospitalization, medical test and medicines prescribed including rehabilitation.
  4. If the injury resulted and prevented the employee from performing his work, the employer shall pay him an allowance equivalent to full wage during the entire period of treatment or for a period of six month, whichever is shorter. If the medication requires more that six months or until the employee fully recovers, the allowance shall be reduced by half until the employee fully recovers, declared disabled or dies, whichever occurs first.

+ Article (147)

  1. Any dispute arises in regard to employee’s fitness for work or degree of disability shall be govern and shall be referred to the Ministry of Health through competent Labor Department. Medical Board will be formed to determine the matter related to the injury or treatment. Assistance of the expert may be sought, and the decision of the Committee shall be final and will submitted to the Labor Department for execution.
  2. In the event the occupational injury resulted to death of the employee, the person who at the time of death of the employee used to be entirely or mainly supported by the income of the descend shall be entitled to compensation equal to basic wage of the employee for 24 months, provided that the amount of compensation is not less than AED 18,000 or more than AED 35,000. Calculated as per the guidelines set forth under the Labor Law.
  3. Should the injury results to partial disability or permanent disability of the employee, compensation shall be calculated set forth under the Labor Law.

In summary, determination of the issues relating to the occupational injury shall be determined in accordance with the level or type of injury and the proportion of disability sustained by the employee.

Cryptocurrency Law in UAE

Cryptocurrency Law in UAE | UAE Blockchain Laws and Regulations

In the field of financial and capital markets, the United Arab Emirates Central Bank and the Securities and Commodities Authority (SCA) are the federal regulators.

The legal regulations that we should bear in mind in the United Arab Emirates is the different regulatory positions that are being adopted by the UAE federal regulators the Central Bank, SCA and free zone regulators the Dubai Financial Services Authority (DFSA) and the Financial Services Regulatory Authority (FSRA). With the use of virtual coins and tokens becoming more popular in the Middle East, and the aspiration of the UAE to be at the forefront of new business regulations, the UAE will seek to carve a dominant space in the field of blockchain and DLT and for that purpose adopt pro-business regulatory measures. By introducing its virtual asset framework early, the Abu Dhabi Global Market (ADGM) has garnered wide international attention and attracted several centralized crypto exchanges to operate out of the ADGM.

Regulation of cryptocurrency and blockchain projects in UAE is performed by the FSRA regarding ADGM. This authority publishes guidance on cryptocurrencies. It also monitors blockchain businesses to ensure transparency as well as prevent money laundering and financing terrorism. Other authorities that might contribute to crypto regulations in UAE in the future are the SCA and the DFSA.

The DFSA is the independent regulator of financial services conducted in or from the DIFC, a purpose-built financial free zone in Dubai, UAE.

The DFSA’s regulatory mandate includes asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange, and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing anti-money laundering (AML) and counter-terrorist financing (CTF) requirements applicable in the DIFC.

The Dubai Multi Commodities Centre Free Zone (DMCC) is a place worth considering for working with cryptocurrencies in UAE. The DMCC crypto license will guarantee the legality of your business.

The first company to receive this license was Regal Assets, which offered cold storage of cryptocurrencies for its customers. In February 2018 Regal RA DMCC, subsidiary of Regal Assets Inc., an internationally renowned gold investment company, and the Middle East’s first company to have been issued a Crypto trading license, launched today a “deep cold storage” solution for investors and traders. For the first time, crypto-commodities owners can now store their Bitcoin, Ethereum and other altcoins in a vault located in Almas Tower, Dubai – the headquarters of DMCC, the world’s most interconnected Free Zone, and the leading trade and enterprise hub for commodities.

However, according to the Library of Congress “Under article D. 7.3 of the Regulatory Framework for Stored Values and an Electronic Payment System, issued by the Central Bank of the UAE in January 2017, all transactions in “virtual currencies” (encompassing cryptocurrencies in Arabic) are prohibited.” and companies only allowed to trade on their own behalf.

As of today, there is no crypto law in UAE. «Regulation of Crypto Asset Activities in ADGM» by the FSRA is the most detailed guide of cryptocurrencies in United Arab Emirates. According to it, there are regulatory requirements for operating crypto asset business including allowed crypto assets, holding equivalent capital resources, KYC and others.

With this The SCA aims to complete the legislative infrastructure for the crypto assets in relation to financial markets and instruments, in addition to commodities from one side as well as the licensing of financial activities related to crypto assets especially when it comes to exchanges, and crowd funding platforms while ensuring security, encouraging innovations and competition in the alternative finance sector. The SCA will endeavor to ensure the protection of investors dealing in crypto assets, and ensure there is no money laundering activities or financing of terrorism.

The market has been waiting for the final regulations concerning crypto assets in the UAE. The SCA had announced the draft crypto asset regulation in October of 2019, a year later it seems, that the law will be approved. This will create a huge boost when it comes to crypto trading, crypto assets as an alternative investment tool, and the implementation of digital currencies in general.

In October 2020 the UAE SCA during its recent Board of Directors virtual meeting headed by H.E.  Abdulla Bin Touq, Minister of Economy and President of Board of Director, has approved the crypto assets legislation. The law will be published soon on UAE SCA’s website.

In April 2018, the UAE Government launched the Emirates Blockchain Strategy 2021. The UAE will use blockchain for digital transactions, giving each customer a unique identification number that points to their information on the secure chain. Information and data on the blockchain cannot be hacked or changed, which will ensure the digital security of national documents and transactions and eventually reduce operational cost and accelerate decision-making, which will affect the vision, rules and regulations of crypto currency, including cryptocurrency.

Ratification and Execution Process of Arbitration Award in UAE

Hire Arbitration Lawyer in Dubai UAE | Ratify Arbitration Award in UAE

Arbitral Awards in UAE sets out two stages: Ratification and Execution. This means that Arbitral Award must first be ratified so that it will subsequently enforce in the same way as court judgements issued by UAE courts. However, recent changes have been introduced to pave way of simplifying the process of ratification and enforcement of the Awards govern by UAE laws.

Federal Law No. 6 of 2018 (the “New Arbitration Law”) governs the conduct of arbitration proceeding and the enforcement of arbitration awards in UAE. Under this law, it differentiates domestic and international arbitrations and the distinction between these has an impact on the process and procedure for the execution of the arbitral award.

The provisions of the Arbitration Law shall apply to:

  • Arbitration conducted inside UAE unless parties agreed in writing to abide to the provisions of another arbitration law and provided further that it will not be contrary to public policy and morals.
  • International Commercial Arbitration conducted abroad wherein the parties agreed in writing that UAE Arbitration Law will govern.
  • Arbitration cases and disputes governed by the UAE law, except otherwise expressly excluded by special provisions

Under this new law, the enforcing party may now apply for recognition and enforcement of arbitral awards in UAE. Summary of the process involved are as follows:

  • Enforcing party shall submit application to the Chief of the Court of Appeals in the Emirate wherein the award is sought to be recognized and enforced. The application must be accompanied by the following documents: original Arbitral Award or certified true copy; copy of the Arbitration Agreement signed by the parties; Certified Arabic translation of the award and copy of the transcript of filing the award with the Court of Appeals.
  • The Court of Appeal is mandated to order recognition and enforcement of the arbitral award within 60 days from the receipt of the application, unless otherwise reasons to nullify the award exist based on the provisions of Article 53.1 of the Arbitration Law. Petition to review the court’s decision on the enforcement of the Award can be filed with the Court of appeal within 30 days.

It is important to note that the new law, however, is not intended to apply to foreign arbitral award therefore it does not affect the enforcement of foreign awards in the UAE. Under Civil Procedure Code, enforcing party to a foreign award in UAE must file a substantive case in the local courts of first instance and the decision of the court of First Instance will be subject to two level: Court of Appeal and Court of Cassation.

Punishment for Spreading Rumours in UAE

Punishment for Spreading Rumours under UAE Cyber Crime Law. False information Law | Fake News Law

Federal Law No. 5 of 2012, Federal Law No. 12 of 2016, and the Electronic Media Regulation of 2018 governs issue of transparency and spreading false information on social media. UAE authorities fasten down rumours and warns UAE residents about the gravity of spreading rumours. In addition, they have adopted measures to combat the same by public awareness campaign and implementing course curriculum educating students about false news in digital era.

These laws are intended to regulate and impose severe punishment on those who are rumourmongers and found guilty of circulating fake news within UAE. The above law pertains to impose sanctions to cyber-crime. Any breach of privacy, illegal access to information or misuse of information can be defined as a cyber-crime in the UAE. In addition, these laws govern offenses such as sharing and posting online content that violates the privacy of others, insulting the symbols of the state and religions, calling for overthrowing the government of the UAE, and disseminating hate speech and inciting violence.

Specific provisions of the law impose the following sanctions:

Article 21 of Federal law No. 5 of 2012 imposed imprisonment of at least six months and a fine between 150,000 UAE dirhams and 500,000 UAE dirhams or either of these two penalties to whoever uses a computer network, electronic information system, or any tools of information technology to invade the privacy of another person. In addition, the same provision enhances the penalty to a period of imprisonment of at least one year and a fine between 250,000 UAE dirhams and 500,000 UAE dirhams or either of these two penalties when a person uses an electronic information system or any information technology means to alter a record, photo, or scene for the purpose of insulting, offending, attacking, or invading another person’s privacy.

Article 24 of Federal law No. 5 of 2012 punished by imprisonment and a fine between 500,000 UAE dirhams and one million UAE dirhams whoever establishes, administers, and runs a website or publishes on a computer network or any method of information technology online content promoting rioting, hatred, racism, sectarianism, or damage to the national unity or social peace or disturbance of the public order and public morals.

Article 28 of Federal law No. 5 of 2012 imposed imprisonment and a fine not to exceed one million UAE dirhams whoever establishes, manages, or runs a website or uses information on a computer network or any means of information technology to transmit information, news, or cartoon drawings or any other pictures for the purpose of endangering the national security and the higher interests of the State or to disturb the public order.

Article 29 of Federal law No. 5 of 2012 punished by imprisonment and a fine not exceeding one million UAE dirhams whoever publishes information, news, statements, or rumours on a website or any computer network or by any means of information technology to damage the reputation, prestige, or stature of the State or any of its institutions or its president, vice-president, any of the rulers of the Emirates, their crown princes, the State’s flag, the national peace, the Emirates’ coat of arms, the national anthem or any of the national symbols.

Article 30 Federal law No. 5 of 2012 sanctioned life imprisonment whoever establishes, manages, or runs a website, or publishes information on a computer network or by means of information technology to overthrow the State, change or seize its ruling system, or violate the country’s constitution or laws or oppose the basic principles that constitute the foundations of the State’s ruling system

Article 38 and 39 of Federal law No. 5 of 2012 imposed term of imprisonment whoever publishes online any incorrect, inaccurate, or misleading information that damages the interests of the State or tarnishes its reputation, prestige, or stature or any person who fails to remove or block access to illicit content after receiving a notice from the federal authorities.

Federal Law No. 12 of 2016 imposed a term of imprisonment and fine between 500,000 UAE dirhams and two million UAE dirhams to whoever uses a fraudulent IP address by using a false mailing address or a third-party address or by any other means for the purpose of committing a crime or preventing its discovery.

Finally, Electronic Media Regulation of 2018 regulates information on social media to provide a responsible content that does not violate the privacy of individuals and protects society. This legislation provides a mandate for certain activities to obtain license issued by National Media Council.

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Charges for Carrying Marijuana in the UAE

What are the Penalties and Charges for Carrying Marijuana in the UAE

United Arab Emirates is known to have zero tolerance attitude to narcotics and takes all illegal drugs cases very seriously. The Emirates is very keen on developing its technical anti-narcotic capabilities and have a very strict approach to tackling drug trafficking cases.

UAE Law No 14 of 1995 and its amendments regulates and governs cases of any narcotics related cases especially illegal possession of Marijuana. The law states “that the substance cannot be “brought, imported, exported, made, extracted, separated, produced, possessed or taken”. United Arab Emirate does not recognize any medical cannabis program and any use of the same is illegal regardless of whether it’s for medical purpose or not.

The following sanctions, penalties and imprisonment will be imposed under the following circumstances:

  • If caught in possession of cannabis, you may be sentenced to four years or more in prison. Additionally, you’ll be given a fine of 10,000 dirhams
  • If you are found selling or distributing Marijuana in the Emirates, the penalty of imprisonment for a period of not less than 10 years and not more than 15 years shall be imposed on offenders. You will also be given a fine of “not less than 20,000 dirhams.
  • On top of this and as additional sanction imposed to foreigners who are found guilty of any of the aforesaid cases, it is very likely that sentence will include deportation as well.
  • Also, under extremely rare cases, the law states that drug trafficking can be punished with death, which is usually executed by firing squad under UAE law.

Given the above circumstances, it is very important especially to travelers, foreigners, resident and locals of United Arab Emirates to know and be educated about the Emirates war on drug agenda and its aim to eliminate and combat illegal drugs.

Divorce Process in UAE for Muslim Couples

The Legal Process of Divorce in UAE for Muslim Couples

Islamic marriages are governed by the Sharia law so as the legal dissolution of marriage. Despite the troublesome and complicated process of terminating marriage, divorce rates continuously increases, and marriage qualities have significantly changed.

Commencement of divorce case in UAE entails certain requirements to be met such as: the couple must be resident of UAE for at least six months prior to the filing for divorce. In addition, it is important to note that filing divorce must be supported with legal grounds such as, but not limited to; Mental incapacity, Disability, Adultery, Abuse, Desertion and other legal grounds permissible under Sharia law.

Under Sharia law, there are two types of divorce – revocable and irrevocable. In revocable divorce, the marriage remains valid within the waiting period of three months. After this period, should the parties reconcile, they can do so by entering into a new marriage contract. On the other hand, irrecoverable divorce terminates the marriage as soon as the decree issued.

Brief summary of filing divorce in United Arab Emirates for Muslim couples are as follows:

  • Divorce proceeding can be filed by the husband or by the wife. The initial step requires the case to be registered at the Family Guidance Section at the respective judicial department in one of the emirates.
  • Thereafter, the court will then appoint conciliator who will initiate a reconciliation proceeding between the parties. This is an indispensable process under UAE law. During this proceeding, divorcing parties will be entitled to address their concerns about the marriage. This can be done even in the absence of their respective legal representatives.
  • If amicable settlement fails and one of the parties or both are determined to dissolve their marriage, then the conciliator will issue a referral letter granting them permission to elevate the matter before the court and determine the conclusion of the divorce case.
  • Once the referral letter is issued, this letter can be submitted before the court within three months from the date of issuance.
  • Once the court obtains jurisdiction over the divorce case and subject to the court’s discretion, divorcing parties will be directed to provide their corresponding evidence to support their respective claims and lay down their own defense.

In addition, UAE government issued recent amendment towards divorce cases by virtue of Federal Law Number 8 of 2019 amending Federal. The following are the most significant amendments encompassing divorce proceedings and case determination:

  1. Under the new law, if the wife filed the divorce under grounds of adultery and she fails to prove the accusations, the case can be dismissed right away and no appeal will be permitted
  2. Under Article 118(2) of the new Law an order must be issued within 90 days from the date of appointment of conciliator. However, if conciliator fails to reconcile the parties, settlement proposal must be recommended to the court, and copy must be provided to the divorcing parties.
  3. Under Article 120 of the new law, if the parties fail to reconcile, the following will be considered:
    1. if it is proven to be the husband’s fault, the wife can seek divorce and other financial rights.
    2. if it is proven to be the wife’s fault, it can be dealt with in the following two ways: (i) divorce will be granted divorce upon paying a certain amount of compensation; or, (ii) unless husband request to maintain the marriage, the court, subject to the court’s discretion to preserving the marriage, can reject the divorce.
  • Under Article 120(4) of the new Law, if the conciliator fails to reconcile both parties due to mutual mistake of both parties, conciliator can order either party to pay compensation on pro-rata basis to the other one who is less guilty or get the divorce without any compensation. However, under Article 120 (5) of the new law, if the parties cannot reconcile and the reason behind filing for divorce is unknown or cannot be located, there can be two options: (i) If the husband is the applicant for divorce, the conciliator can recommend dismissing the case; (ii) Whereas, if the case has been registered by the wife, the conciliator will choose whether to issue an order for divorce with a lump sum amount or to dismiss the case in the interest of preserving the family.

When arranging a divorce, seek the advice of our team having a specialist divorce lawyers in Dubai UAE (with knowledge of local Sharia law). We are ready and willing to handle your legal matter

dubai UAE labour law

UAE LABOUR AND EMPLOYMENT LAW

UAE LABOUR AND EMPLOYMENT LAW | LABOUR AND EMPLOYMENT LAW IN UAE

Federal Law No. 8 of 1980 governs labour rights of employees in UAE public and private sector. Except for certain categories of employees, this law applies to all employees working in the UAE, whether UAE nationals or expatriates.

In turn Ministry of Labour is the overseeing authority responsible in maintaining the proper implementation of labour rights and responsible implementation of the labour laws and regulations.

UAE Labour Law provides the framework relating to the following core employment facets: employment contract bound and conditions relating to working hours, termination of employment, end of service gratuity payments and notice period, vacation and public holidays, sick leave, maternity leave and annual leave.

UAE employment contracts are categorized into two classification: limited and unlimited contracts. Major distinction between these two types of employment contract are as follows:

  • Limited contract is a fixed term and it will automatically terminate at the end of the term unless terminated earlier by either party or renewed by both parties. On the other hand, unlimited contract is an open-ended and maybe terminated in accordance with the conditions set forth in the UAE Labour Laws.
  • Limited term contracts have no notice provision and will expire at the end of the term. On the other hand, under the UAE Labour Law, there are two main ways for an employer to legally terminate an unlimited term contract – minimum notice period of 30 calendar days unless otherwise agreed on longer notice period; without notice period if the reason of employment termination is grounded for one of the 11 exhaustive gross misconduct reasons set out in Article 88 and 120 of UAE Labour Law.
  • In the event, the employee desires to terminate the limited term contract before the expiry of the term, he will be liable to pay the employer “early termination compensation” or half of three months’ salary or half of the remuneration for the residual period if the contract is less than 3 months prior to its expiration. On the other hand, in an unlimited contract, an employee may resign by providing 30 days’ notice period. However, the employee may resign without notice if the grounds are based on the conditions set forth under Article 121 of the Labour Law.
  • End of service gratuity for both Limited and Unlimited contract are calculated as follows:
 Employee who has completed one year or more of continuous service:

·         21 days’ basic salary for each year of the first five years of service

·         30 calendar days’ basic pay for each additional year

Provided that the entire remuneration does not exceed two years’ pay.

However, in cases where the employee is terminated summarily for gross misconduct pursuant to the provisions of the UAE Labour Law, the employee is not entitled to end of service gratuity.

End of service gratuity computation will differ in the event the employee resigned:

(i) Under limiter term contract, the employee is not entitled if he resigns less than 5 years or service. If he has more that 5 years of service, gratuity is calculated as per above guidelines.

(ii) Under unlimited contract, he will be entitled base on the following calculations:

·       One to three years of service: 1/3 reduction

·       Three to Five years of service: 2/3 reduction

·       More than Five years of service: no reduction

 

If you want to know your rights and learn more about how employment and incentive practices are implemented in UAE Labour Law, you can contact our team of expert labour lawyers in UAE and we will guide you through and pertinent legal advice will be provided.

bounced cheque in dubai uae

NEW REGULATIONS FOR BOUNCE CHEQUES UNDER UAE LAW

BOUNCED CHEQUES LAW IN UAE | CHEQUES REGULATIONS IN UAE | BOUNCED CHEQUE CASE IN DUBAI UAE

A common predicament faced in the business realm is the risk of possessing dishonored cheques. For this reason, in order to protect and provide remedy against this act, UAE Federal Penal Code imposed criminal sanctions on those persons drawing bounced cheques. On Article 401 of Federal Law No. 3 of 1987 imposes penalty by way of fine or imprisonment – for an amount of not less that AED 1,000 and not more than AED 300,000 imprisonment of not less than one more and not more than three years may be decreed by the court, as the case may be.

Therefore, it is always been resorted to and have been a practical legal means for creditors to file a criminal complaint for the bounced cheque along with a civil case for recovery of the amount disputed for collection. And since it has been a common practice, this criminal courts dockets are heavily congested and clogged as a result. And in order to ease and strive to reduce the burden from police, public prosecutors and criminal courts and to tighten the gravity of the penalties in low value claims, UAE legislators have introduced and amended the provisions of the bounce cheque laws providing a speedy resolution by introducing “ONE DAY COURT” and revised the circumstances on the imprisonment aspect of bounced cheque.

ONE DAY COURT – this new system allows resolution of minor bounced cheque cases to be determined and decision to be issued within 24 hours.  This is an effective way pf facilitating UAE judicial system for speedy determination of minor cases and to strengthen la laws of UAE for misdemeanor. Courts in the Emirates of ABU DHABI, DUBAI and RAS AL KHAIMA have been established successfully resolving minor bounced cheque cases.

On the other hand, the new law allows the criminal courts to impose only fine on simple crimes without imprisonment. To challenge the order of the court, objections may be filed within 7 days and this matter will be dealt with by the criminal court in the normal procedures as applicable. “SIMPLE CRIME” is categorized as per the cheque value of AED 200,000 or less and a fine of not exceeding AED 5,000 to AED 10,000 will be imposed. Cases for the aforesaid cheque value can be sentence by the Dubai Public Prosecution directly without any need of court procedure, however, the imposition shall be for a fine only and cannot exceed AED 5,000 to AED 10,000 as the case may be.

If you are looking to recover value of a bounced cheque with the help of debt collection lawyer? Our team of AL REYAMI ADVOCATES & MUHYEALDEEN INTERNATIONAL LEGAL CONSULTANTS can help you deal with all the cases concerning bounced cheques. For further consultation and legal assistance CONTACT US.

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delayed handover dubai projects

UAE INVESTORS LEGAL REMEDIES FOR PROPERTY HANDOVER DELAYS

Property Handover Delay in Dubai | Cancelled Projects in UAE

Investors and builders in Real Estate sector are commonly hurdled by issues pertaining to the timely hand over of the property. This kind of dispute often causes enormous financial loss from investor’s pocket. Therefore, UAE legislators implemented laws to protect the claims of the investors who opt to deal with properties in off plan cases. However, several / difference legal options available for handover delays would mainly depend upon the terms and conditions mentioned in the contract.

Take for example, if the main reason of delay is within the context of force majeure (clause in the contract exonerating liability for unavoidable circumstances, such as catastrophes), then the purchaser will be unable to terminate the contract nor claim compensation for delay from the contractor/developer.

However, if the main cause of delay is imputed primarily due to the failure of the contractor/developer to perform its obligations set out in the contract resulting to breach thereof, then the purchaser may resort to the following legal remedies:

  • Termination of the agreement
  • Claim compensation for such delay (this must be expressly stipulated in the signed agreement between the parties and the purchaser must prove that the delay has caused substantial losses which is detrimental to the purchaser). Pursuant to UAE law, purchaser can claim compensation for the following: (i) Interest; (ii) Deposit; (iii) Legal and Agent fees; and (iv) any other amount accrued as determined and proved.

The above-mentioned legal remedies can be done by filing a claim in Dubai courts for litigation or if the parties have agreed in the contract for alternative dispute resolution, an arbitration case can be filed. Decision decreed in both the resolving avenues will be binding on all the parties related to the dispute.

In some instances, investors can also inquire with the Real Estate Regulatory Authority for delayed projects and cancelled project before the committee if the property is cancelled by RERA. Thus, Judicial Committee for liquidation has exclusive jurisdiction over any dispute related to cancelled projects and no other court or arbitration proceedings are permitted to decide on any stalled projects. Investors have the right to lodge their claims directly to the Judicial Committee in this regard.

Hence, before filing any legal case or seeking any settlement, it is very important to first review the terms and conditions of the signed contract between the parties. It is also noteworthy to check whether the property is registered with DLD and approved by RERA. Conducting a due diligence prior to lodging a claim will greatly be an advantage towards the investor in getting the aid needed and resort to the best remedy to protect its rights and interest.

If you are facing issued of property handover delays, legal opinion and assistance from experts will be indispensable. We at Al Reyami Advocates & Muhyealdeen International Legal Consultants has expert property lawyers in Dubai that can help you review and revisit the contract and provide you our legal opinion and assist you properly in enforcing your legal rights and remedies provided under the laws of United Arab Emirates. You may contact us for further information and consultation.

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