Host
There’s just so much more to hear. Download our podcast at dubaii1038.com. You’re listening to Drive Live. We are talking all things of a legal nature. Drive Live Talks Legal.
Our guest today is Ali Al-Assad from Yamalova & Plewka. Ali, really good to have you back. Nice to see you.
Ali Al-Assad
Thank you for having me, Aran.
Host
So we said today we’re going to talk about bounced checks. It’s something that comes up quite a lot. And obviously, the rules changed quite recently, so we’ll have a look at that. But you’ve also just announced some breaking legal news that you can share with us. Obviously, it’s breaking, so we don’t have full details, but you’re going to enlighten us. Maybe we should start there first.
Ali Al-Assad
Yeah, so basically, today there was an announcement through the media from the Ministry of Labour that they are applying a new system for part-time jobs.
If you remember the previous system, any employee working in the UAE with a full-time job from 9 to 5, who wanted a part-time job for, say, two hours at night with a different company, had to obtain an offer letter from the part-time employer and an NOC from their full-time employer. These documents were then submitted to the Ministry of Labour. If approved, the employee could legally work part-time for another employer.
The new system changes that. Now, for certain qualifications—basically anyone with a higher-than-high-school degree—employees can work part-time by just getting an offer letter from the company, without needing an NOC from their current employer. As per the news we have, a person can even take more than one part-time job at the same time.
For example, if you want to work for one company on Sunday and Monday and another for the rest of the week, you no longer need to get permission from one place to do that. Also, some companies may be able to hire part-time workers from abroad, though we still need to see how visas will be processed for this.
لودميلا يامالوفا
Okay, so what sectors are we talking about here?
Ali Al-Assad
For now, we don’t have clear details. The general approach seems to favor jobs requiring mental qualifications, special skills, or specific degrees of education. For instance, with the introduction of VAT, businesses may need short-term accountants instead of full-time employees or accounting firms.
This system could also benefit freelancers like graphic designers or parents returning to work part-time. It’s a step towards regulating previously informal or unregistered work practices.
Host
What about spouses on family visas? Would they still need an NOC from their husband to work part-time?
Ali Al-Assad
If you’re on an employment visa, you don’t need an NOC from the sponsor. But we’re unsure if this applies to family visas, as the rules discussed so far pertain to employment visas.
Host
It seems there’s a broader trend toward flexibility in employment. Is this part of a larger shift in the UAE labor market?
Ali Al-Assad
Yes, the approach now prioritizes keeping qualified talent within the market. Employment bans are less common, and the focus is on flexibility to retain skilled workers.
Host
Let’s turn to today’s main topic—bounced checks. The laws have changed in Dubai. What’s different now?
Ali Al-Assad
Previously, bounced checks led to criminal cases and lengthy court processes, often taking a year or more. Now, under the Penal Order Law, bounced checks up to AED 200,000 are handled with fines instead of court cases.
For example, if your bounced check is worth AED 10,000, you’ll face a fine of AED 2,000, which can be paid the same day to resolve the criminal side of the issue. The liability to pay the check’s value still remains, and the beneficiary can pursue a civil case if needed.
For checks over AED 200,000, the old system applies, involving court trials and potential jail time.
Host
That’s a significant change. What about people with no funds to cover the check?
Ali Al-Assad
The fine must still be paid. However, the new system allows the process to resolve faster, enabling individuals to get back to work and potentially pay their debts more quickly.
Host
Let’s take some listener questions. Zayed, you’re on the line.
Zayed
Hi, I’m trying to open a company in a JLT free zone, but I need an NOC from my current employer. Does the new rule apply here?
Ali Al-Assad
No, the new rule applies only to part-time employment under the Ministry of Labour system. For opening a company, most free zones still require an NOC. Some free zones don’t, but you’ll need to check with the specific free zone authority.
Host
Thank you, Zayed. That’s helpful clarification, Ali. Now let’s move back to bounced checks. Ali, can you break down the new fine system for bounced checks?
Ali Al-Assad
Sure. If the value of the bounced check is:
- Below AED 50,000, the fine is AED 2,000.
- Between AED 50,000 and AED 100,000, the fine is AED 5,000.
- Between AED 100,000 and AED 200,000, the fine is AED 10,000.
If the check exceeds AED 200,000, it falls under the old system, requiring a trial and potentially jail time.
Host
We’ve got another question, Ali. This one’s from John, asking about civil cases for bounced checks under AED 10,000. What happens in those cases?
Ali Al-Assad
For bounced checks under AED 10,000, the beneficiary can file a civil case. Initially, the case is referred to amicable mediation at Dubai Courts. If both parties fail to reach an agreement, it goes back to the normal legal process, involving court hearings, submissions, and a judgment.
Once a judgment is issued, enforcement proceedings can begin. If the debtor has no assets to cover the amount, the judge may order their arrest until payment is made. However, debtors can request to pay in installments, and the judge may approve based on their financial situation.
Host
That’s helpful. Let’s move to another listener question. Eric, you’re on line five. What’s your question for Ali?
Eric
Thanks for taking my call. I’ve lost my job, but I have a bank loan with AED 50,000 outstanding. What can I do if I can’t make the payments?
Ali Al-Assad
Eric, first, if the bank hasn’t initiated a criminal case, you’re not prohibited from leaving the UAE. However, if there’s a police case for a bounced check related to the loan, you’ll need to resolve it.
Under the new system, if the amount is below AED 50,000, you’d face a fine of AED 2,000. Once paid, you’re free to leave or continue working. But remember, the bank still has the right to pursue a civil case for the loan amount.
Host
Let’s go to Sanjay’s text. He runs a car rental business and faces bounced checks ranging from AED 2,000 to AED 50,000. He says filing civil cases is expensive and time-consuming. What’s his recourse?
Ali Al-Assad
Sanjay’s situation highlights a limitation of the system. Criminal fines only address the bounced check’s criminal side, not the financial side. To recover funds, a civil case is still required.
To mitigate risks, businesses like car rental companies might consider alternatives like cash deposits or credit card guarantees instead of relying on checks. While this doesn’t solve past issues, it could protect future transactions.
Host
That makes sense. Here’s another text from Bob. He owes AED 100,000 to a bank and wants to leave the country. What are his options?
Ali Al-Assad
Bob’s situation depends on whether the bank has taken legal action. If no case has been filed, there’s no travel restriction. However, if the bank has filed a police case for a bounced check, the new system applies.
If the check is below AED 200,000, Bob would pay the fine and be free to travel. For checks above AED 200,000, the case goes to trial under the old system, with penalties of up to AED 20,000 or jail time.
Host
We’re almost out of time, but one last question from Taron. Is there a limit to how many checks someone can bounce before penalties escalate?
Ali Al-Assad
It depends. If multiple bounced checks result from a single transaction, like monthly loan installments, the penalties are consolidated. But if checks are issued to different parties, each case is treated separately.
Repeated offenses might disqualify individuals from benefiting from the new system. Judges may impose stricter penalties based on the person’s history.
Host
Thanks, Ali. That wraps up today’s session of Drive Live Talks Legal. Always a pleasure having you with us.
Ali Al-Assad
My pleasure. Thank you.
Host
And thank you to all our listeners for your questions. Don’t forget, there’s so much more to hear—download our podcast at Dubai1038.com.
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