ESQ ADVOCATES ARTICLES - ESQ Advocates

ARTICLES

ESQ ADVOCATES LEGAL ARTICLES

𝐖𝐇𝐀𝐓 𝐀𝐑𝐄 𝐓𝐇𝐄 𝐑𝐄𝐐𝐔𝐈𝐑𝐄𝐌𝐄𝐍𝐓𝐒 𝐅𝐎𝐑 𝐅𝐈𝐋𝐈𝐍𝐆 𝐀 𝐂𝐋𝐀𝐈𝐌?

To initiate legal proceedings in the United Arab Emirates, it is necessary to submit a claim to the court that has jurisdiction over the matter. The claim should outline the grounds for the dispute and the remedies being sought. Furthermore, a court fee must be paid, which is calculated at 7.5% of the value of the claim, with a maximum limit of AED 30,000 (equivalent to USD 8,000).

𝐖𝐇𝐀𝐓 𝐀𝐑𝐄 𝐓𝐇𝐄 𝐑𝐄𝐐𝐔𝐈𝐑𝐄𝐌𝐄𝐍𝐓𝐒 𝐅𝐎𝐑 𝐅𝐈𝐋𝐈𝐍𝐆 𝐀 𝐂𝐋𝐀𝐈𝐌?

The statement of claim must be written in Arabic to be accepted by the UAE courts.

The following information should be included in the document even though there are no formal rules as to its contents:

✔️ Details of the claimant
✔️ The subject matter and grounds of dispute
✔️ The cause(s) of action
✔️ The remedy sought
✔️ Documents relied on as supporting evidence

Can an employee seek compensation for unfair dismissal due to salary reduction?

No amount may be deducted or withheld from worker’s wage except in cases specified by law. An employee has the right to request for arbitrary dismissal compensation taking into consideration by the court.

Unlawful termination

The employer shall pay fair compensation to the worker estimated by the competent court if it is proven that the termination is unlawful according to Clause 1 of Article 25. The amount of compensation shall be defined by taking into account the work type and the amount of damage caused to the worker and his service term. It is required in all cases that the amount of compensation does not exceed the worker’s wage for a period of (3) three months, calculated according to the last wage he was obtaining.

The provisions of Clause 2 of Article 25 shall not prejudice the right of the worker to obtain a notice period allowance and end of service benefits payable to him, in accordance with the provisions hereof.

As a principle, the right to claim is forfeited by limitation after one year passed from the due date of the right and each party s not entitled to claim. But you have the right to request commission for the last year of your work if there is a written agreement between both of you or the commission was a part of your salary and the employer was always giving it.

Can a tenant be evicted for making changes to the property without permission?

The landlord must prove this by a report issued by or attested by Dubai Municipality. A landlord has the right to evict a tenant if he makes changes in the property without permission.

As per Article 19 of law no 26 of 2007 regulating the relationship between landlords and tenants, the tenant shall not make any changes, renovations or maintenance works without landlord’s permission, after obtaining necessary approvals from competent authorities. This shall not violate the tenant’s obligation to execute agreed upon maintenance or that which is ordinarily done by tenants.

The landlord has the right to vacate the tenant in case the tenant makes a change to the real property that renders it unsafe in a manner that makes it impossible to restore the real property to its original state, Causes to evict the tenant from the real property prior to the expiry of the term of the tenancy as per Article 25 of the above law, are: — (a) where the tenant fails to pay the rent or any part thereof within thirty (30) days after the notice to pay is given to the tenant by the landlord unless otherwise agreed by the parties; b) where the tenant sublets the real property or any part thereof without obtaining the landlord’s approval in writing. In this case, the eviction will apply to both the tenant and sub-tenant.

Sub-tenant

However, the sub-tenant’s right to claim a compensation from the tenant will be preserved; c) where the tenant uses the real property or allows others to use it for any illegal purpose or for a purpose which breaches public order or morals; d) where the tenant of commercial real property leaves it unoccupied for no valid reason for thirty (30) consecutive days or ninety (90) non-consecutive days within the same year, unless agreed otherwise by both parties; e) where the tenant makes a change to the real property that renders it unsafe in a manner that makes it impossible to restore the real property to its original state, or damages the real property wilfully or through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage; f) where the tenant uses the real property for a purpose other than that for which the real property was leased, or uses the real property in a manner that violates planning, construction, and use-of-land regulations in force in the emirate;

g) where the real property is condemned, provided that the landlord must prove this by a technical report issued by or attested to by Dubai Municipality; h) where the tenant fails to observe any obligation imposed on him by this law or any of the terms of the tenancy contract within thirty (30) days from the date a notice to perform such obligation or term is served upon him by the landlord; or i) where competent government entities requires demolition or reconstruction of the real property as per urban development requirements in the emirate.

Hefty fines for recruiting a worker and leaving him without work.

Up to Dh200,000 fine for employing a worker not permitted to work for a company. Companies can face hefty fines if they recruit workers and leave them without work.

As a principle, the competent Labour Department will register the case against the company you signed your contract with because the contract is the indicator for the employment relationship. That is why it is forbidden by law to put your residence on one company and work with another as per Article (60) of the new labour law that states any person who commits the following shall be punished by a fine of not less than Dh50,000 and not more than Dh200,000: (1) Employing a worker who is not permitted to work for him; (2) Recruiting or employing a worker and leaving him without work. The procedures to be taken is to file the case against both companies and prove that both companies are one entity and that the first company had sent you to work with the second company which was paying you the salaries. The salary transfers and slips will prove that you were really working for the second company while the contract will prove that you were working to the first one. You will be responsible to prove your case against both companies with all the means of proof like written documents, emails, oath, etc.

Can a divorcee demand more alimony if ex-spouse's income rises?

Normally, request to change the dues is heard only after one year has passed since claim. The court considers various financial factors before setting the alimony.

You have the right to file a case in front of Personal Status Law to increase the alimony. The case to increase or decrease the alimony should be filed after one year from the date of alimony’s claim in court unless there are some exceptional circumstances. Article 64 of the personal status law states that alimony may be increased or reduced according to the change of circumstances. Secondly, an increment or reduction of alimony may not be heard prior to the lapse of one year from when the decision was first made. For the record, the increase or decrease of alimony is computed from the date of claim in court.

What is considered?

To determine the ability or inability of the person charged with alimony, as well as the estimation of the necessity of increasing or decreasing the imposed alimony and the appropriate amount for that, is a matter of the court as per the documents submitted. Article 63 states that in assessing the amount of alimony, it shall be taken into consideration the possibilities of the debtor thereof, the circumstances of the beneficiary and the economic situation, in place and time, provided it does not fall below the sufficiency level.

To prove that he has a private company may be done with any means of proof including written documents. You may request the court to address the Economic department to provide the court with all the trade licenses that are registered under his name. You may also request the court to address the company he works in, to provide the court with the salary certificate.

Can a non-Muslim expat in UAE make a will for his wife?

There are applicable laws in the Emirates that govern inheritance issues for foreigners. A Will may apply to the whole Estate or to any part thereof.

A non-Muslim expatriate in the UAE may register his or her Will with the court which has jurisdiction in the UAE, [such as the] Notary Public – Dubai Court or DIFC Wills Service Centre of DIFC Court. The execution of a Will will be effected in writing, or by using meaningful verbal expressions or intelligible signs if the testator is unable to write. A Will may be made in favour of a named or unnamed person; a living person or an unborn child whose existence is ascertained; or an identified or unidentified group, and may be made for charitable purposes. The wording of a Will may be non-restrictive or restrictive. A Will may stipulate that it will take effect on a future date, and may be conditional or contingent upon the satisfaction of any requirements. In addition, a Will may apply to the whole Estate or to any part thereof.

Relevant laws Article 6 (a) of Dubai Wills Law states: “A register known as the ‘Register of Wills of non-Muslims’ has been created at the Dubai Courts and at the DIFC Courts for the purpose of registering Wills of non-Muslims. Based on the aforementioned provisions of law, you have the right to make such Will for your wife for all of your properties and assets in the UAE and to register it in Dubai either in UAE courts or DIFC. The wife as a legal heir has the full right to inherit the company and the assets owned by you after your death. The ownership of willed property, assets, etc., will be transferred to the beneficiary of the Will pursuant to an order or a judgment issued by the Competent Court.

Help, bank has raised loan interest rate without notice.

Circumstances under which it can or cannot be done explained. The bank doesn’t have the right to raise the interest rate without your consent unless agreed upon in the loan agreement.

The bank doesn’t have the right to raise the interest rate without your consent unless agreed upon in the loan agreement. Such an act from the bank is considered as amending the agreement from one side which is not accepted by law, because if the contract is valid and binding, according to Article 267 of the Civil Transactions Law, none of the contracting parties may revoke, modify or cancel it except by mutual consent, order of the court or a law provision. In bilateral contracts, if one of the parties does not perform his contractual obligations, the other party may, after serving a formal notification to the debtor, demand the performance of the contract or its termination which means that you have the right to initially file a case to terminate the loan agreement on the basis that the bank violated the contract or you might file a counterclaim when the bank takes the step and starts the case. The bank’s interest will stop if the lawsuit is filed but it doesn’t mean that the court will not decide the legal delay interest which is another type of interests the court might judge from the date the case is filed until the date of full payment.

What are the rules for suspending partner/manager in loss-making firm?

A look at what the law on commercial companies stipulates. You have the right to remove the manager and appoint a new one from outside the company.

Article 85 of Federal Decree Law No. (32) Of 2021 on Commercial Companies states that unless the Memorandum of Association (MOA) of the company or the appointment contract of the manager provides otherwise, the manager shall be removed by a resolution of the General Assembly, whether the manager is a partner or not. The court may also order that the manager be removed based upon the request of one or more partners of the company, if the court is convinced that such removal is well-justified. You have the right to file a criminal and compensation case against the manager because according to Article 84 of the same law, every manager of the Limited Liability Company shall be held liable vis-à-vis the company, the partners and third parties for any fraudulent acts committed by such manager. He shall also be liable for any losses or expenses incurred by the company due to improper exercise of the powers or violation of the provisions of any law in force, the MOA of the company or the appointment contract of the manager or for any gross error committed by the manager. Any provision in the MOA or the appointment contract of the manager in conflict with the provisions of this clause shall be null and void.

What are the rules for suspending partner/manager in loss-making firm?

Bank took end-of-service dues and demanded property sale. The bank does not have the right to forfeit your end of service dues or sell the property without a previous agreement or a permission signed by you. You have to check the agreement signed with the bank, in case such provisions are stated in the agreement, then the bank has the right. In case they are not, then regarding your end of service dues, you have to file a case in the civil court against the bank to return your end of service money.

Regarding the selling of the property, you have to wait for the next step from the bank, because the bank will not sell the property without filing a case in the court to do so, following Article (267) of the Civil Transactions Law which states that “If a contract is valid and binding, none of the contracting parties may revoke, modify or rescind it except by mutual consent, order of the court or a law provision.” In case the bank took the procedure of selling the property without attending the court, then you have to file a case against the bank to return the property back and compensate you for all the losses you suffered. In the UAE, the legal process for property seizure is well-defined and must be strictly adhered to by financial institutions. According to UAE law, banks and other financial entities cannot seize properties without obtaining a court order. The process typically involves: Notification of Default: The borrower must be formally notified of the default on loan payments. Court Proceedings: If the borrower fails to settle the dues, the bank must file a case in court to seek permission for property seizure. Court Order: Only after obtaining a court order can the bank proceed with the seizure of the property. In this case, it appears that the bank did not follow these crucial steps, leading to allegations of illegal seizure. Property owners in the UAE are entitled to specific rights that safeguard them from unlawful actions by financial institutions. These rights include: Right to Due Process: Property owners are entitled to a fair legal process before any seizure can occur. Right to Dispute: Owners have the right to dispute claims and present their case in court. Right to Compensation: If a property is illegally seized, the owner can seek compensation for damages incurred. The implications of this case are far-reaching. It highlights the importance of adhering to legal procedures and respecting the rights of borrowers. For banks, it serves as a reminder of the legal boundaries within which they must operate. For property owners, it underscores the necessity of understanding and asserting their legal rights. If you find yourself in a situation where a bank is threatening to seize your property without following due process, here are some steps you can take: Consult with a legal expert to understand your rights and the appropriate course of action. Keep records of all communications and transactions with the bank. * Report the matter to relevant authorities if you believe your rights are being violated. * If necessary, take legal action to protect your property and seek compensation for any illegal actions. In conclusion, the aforementioned incident highlights the critical role that legal due process plays in protecting the rights of property owners. Both financial institutions and individuals must respect these rights and ensure compliance with the relevant laws and regulations. Should you find yourself involved in a similar dispute, it is highly recommended that you seek the guidance of a qualified legal professional.