My employer says I must pay Dh15,000 after giving notice

Keren Bobker reveals whether an employee should bear the cost of residency visas and labour cards if they leave during their first year.

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I have resigned from my current job after six months at the company because I have been in the Emirates for more than five years now and really want to return to my home country of Canada. I have agreed to work my full notice period and also advised I can stay a little longer until I am replaced. Despite this the company is being very unfriendly and have asked me to pay Dh15,000 in visa and associated expenses. This seems a great deal of money and surely more than they have to pay in costs. I'd like to know where I stand as I can't really afford to pay this and do not want to pay any more than I have to. JB, Abu Dhabi

UAE labour law states that an employee should not bear the costs of residency visas and labour cards, but all too often employers add a clause to contracts stating that employees who leave within a certain time are liable to reimburse them. If an employee signs the contract and agrees to these terms then they are in a bit of grey area, but it is highly doubtful this would stand up in any UAE court. In addition, Dh15,000 is far in excess of any costs the company has or will incur and so is unreasonable and I would suggest contacting the Ministry of Labour in this regard as it will confirm the position to you and if necessary intervene with your employer.

I approached my landlord to renew my tenancy and he said he does not want to renew. This was the first I heard of this and he has asked me to vacate at the end of the tenancy period on January 22, 2014. I have challenged this and informed the landlord that he has to give me one year's notice, which he has not done. The Rent Committee has advised I should raise a case with them if he has not sent me a new contract with the same terms and conditions as last year. I am really confused now as even though I have the Ejari registered contact, the landlord says he is referring to the green tenancy contract, which is generic, but to which he added a clause about me not being able to renew on the back of it. I rang the Rent Committee yesterday and they advised that this clause – which is about the renewal of tenancy being at the total discretion of the landlord – is not valid, but the landlord is disputing this. He also advises that he wants to live in this apartment. I understand that he owns other properties as when I first rented the apartment the agent mentioned that he owned several and was complaining about falling rents. As far as I am aware he also works in Abu Dhabi. It is hard for me to get hold of the Rent Committee during the working day so could you kindly clarify where I stand? SH, Dubai

You are quite right in your assumptions. No matter what the landlord says, he has to abide by the law and that states that he has to give you 12 months’ written note, at time of renewal, to vacate the property and that this can only be for specific reasons. He says that he wants to live in the property which is a valid reason, but he has to go about it the right way. I have seen so many cases of late where landlords are trying to get people to move out so they can re-rent a property at a higher amount and this looks like another one. Rera (Real Estate Regulatory Authority) will support you if you do make a formal case against him, although you would have to bear the initial costs and it’s always better to get the landlord to back down and accept the laws apply to them too, especially as they will not win a case like this, which is clear-cut. Bear in mind that if you do eventually leave – although this doesn’t have to be until January 2015 – and he does not move in himself, he would have to pay you compensation for getting you to vacate under false pretences. I suggest that you write back to him, explaining the law, stating that you have taken advice from Rera.

My new employer has told me that it is company policy to hold the passports of all employees in the company safe for matters of security. They claim this is in my interest, but I am really not happy about this. SP, Sharjah

It is against the law for any employer in the UAE to retain their employee’s passports. This has been confirmed time and again by numerous lawyers and government spokespeople. If an employer refuses to return a passport, a case can be opened with the Ministry of Labour or a complaint made with your embassy or consulate. From a legal point of view, a passport is the property of the government that issues it and the holder is trusted with its safekeeping.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com