Host
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Host
This is Drive Live with Linda Taylor and Tim Elliott.
422, that text actually—you are perfectly at liberty to use that word. There is an official definition of that word, and it is not a swear word, NLT. No, it’s not. I didn’t know, but they say a moron is a moron. Those that leave litter cost society in so many ways. This is only one example. I wasn’t sure if “moron” was too offensive, but I’ve said it three times now, so hopefully it’s not. Well, that’s cleared that up, hasn’t it? I’m glad that we’ve got past that issue.
Host
Drive Live Talks Legal. Our guest today is Ludmila Yamalova from Yamalova & Plewka.
Host
Welcome, Ludmila. How are you?
لودميلا يامالوفا
Good to be here, and happy pre-Halloween.
Host
Is that a thing—pre-Halloween?
لودميلا يامالوفا
I’m not sure, actually. I think we’re in the thick of Halloween. At least where I live, it’s been celebrated for the last six days.
Host
I love Halloween. The eve of all Hallows is just a sweetie fest.
لودميلا يامالوفا
Well, I feel quite upset, actually, because where I live, the trick-or-treaters came round and I wasn’t in.
Host
And you bought the sweets?
لودميلا يامالوفا
نعم.
Host
Were you really not in?
لودميلا يامالوفا
No.
Host
How did you know they came round if you weren’t in? Do you have voice-activated cameras or motion-activated cameras?
لودميلا يامالوفا
No, it was just known that this was the night they were going to come round.
Host
So you were out the night they were going to come round? That’s even worse, isn’t it? You went out rather than give children sweets?
لودميلا يامالوفا
No, Tim, you would make a good lawyer. That was very good.
Host
Thanks very much. I’m not sure how to take that, but I’ll take it as a compliment.
لودميلا يامالوفا
It’s a compliment, for sure.
Host
Anyway, I do always say we get lots of questions for Ludmila. If you can text them in early, she can get to as many as possible. Someone has already texted asking, “The RDC has ruled in my favor, but how can I ensure the landlord pays the compensation that’s awarded?”
لودميلا يامالوفا
Well, if the landlord does not pay the compensation voluntarily, the only way to ensure this is to file what’s called an enforcement proceeding, and that’s filed through the courts.
As part of enforcement, you would ask the court to issue various letters to authorities, such as the land department, RTA, banks, and so on, trying to locate where the landlord might have assets. If a bank account is located, the court would then transfer the proportionate amount of money to satisfy the judgment.
Often, there are no bank accounts, so if there are any assets such as property, the court will issue an order to freeze the assets and auction them off to satisfy the judgment. This is another legal process, not very complicated, but it does add to the rental dispute process. Negotiating a voluntary payment is usually the better option.
Host
That sounds like it could be a really lengthy process.
لودميلا يامالوفا
In fact, it isn’t. It sounds lengthy, but once you have a final judgment, the liability is established. The enforcement process is more administrative. The sooner you provide details, such as a bank account, the quicker the assets can be located.
Host
Okay, Ludmila, let’s talk about one of the topics you wanted to bring up today—recent changes to the Dubai investment visa. What are those?
لودميلا يامالوفا
Let me preface this by saying it still surprises me how few people know about the Dubai investor visa. This is a residence visa issued on the basis of property ownership. The regulation allowing for this visa has been in place for at least three to four years, yet very few people seem to be aware of it.
The recent change pertains to one element of the process, but it’s important. If the property was inherited or gifted, it now disqualifies the owner from obtaining an investor visa. For example, if Tim transferred his property to his father as a gift, and his father then wanted to apply for an investor visa, he would no longer qualify. To qualify, the property must have been purchased outright.
Host
So, this change was made recently?
لودميلا يامالوفا
Yes, only about two weeks ago. It’s a significant update because many people apply for property visas, especially for inherited properties.
Host
That seems like a loophole that’s now been closed.
لودميلا يامالوفا
Exactly. It’s likely to prevent families from exploiting this. While the financial investment criteria remain the same—a minimum property value of AED 1 million—it’s important to note that the property must have been purchased, not transferred or inherited.
Host
What about the duration of the visa? Once you qualify, how long does it last?
لودميلا يامالوفا
It’s a two-year residence visa. However, this visa doesn’t allow you to work, even with permission. Otherwise, it offers all the benefits of being a resident, such as sponsoring dependents, qualifying for loans, and so on.
Host
Last time we discussed this, we had many questions about fluctuating property values. If someone has already bought a property, should they worry about its current market value?
لودميلا يامالوفا
If you’ve already qualified for the visa, there’s no need to worry as long as you own the property. The visa will remain valid. However, for new applications, the property’s market value may be assessed, especially if it was purchased years ago.
Host
Are there differences based on who owns the property?
لودميلا يامالوفا
Yes, there’s a small but notable difference. If the property is owned by a female, she can sponsor her husband for only one year. Conversely, if a male owns the property, he can sponsor his wife and dependents for the full two-year duration of his visa.
Host
Interesting. Let’s circle back to another question we’ve received about investor visas. Vincent asks, “I have a property worth AED 1 million and a visa. Can I pass the property on to my 16-year-old son so he can qualify for a visa?”
لودميلا يامالوفا
Unfortunately, no. As it stands, inherited properties do not qualify for the visa.
Host
What if Vincent sold the property to his son? Would that work?
لودميلا يامالوفا
Yes, as long as it’s a legitimate sale. However, in cases where no actual money changes hands, the transaction would need to be documented carefully. This would also incur a 4% transfer fee to the land department, as opposed to the much lower gift tax of 0.02%.
Host
Thank you for clarifying. Now, let’s move to employment law. Someone asked about warning letters—what must they include, and how should they be issued?
لودميلا يامالوفا
Warning letters are critical in employment law, especially under Article 120 of the UAE labor law, which deals with terminations due to misconduct. For a warning letter to be valid, it must:
- Be specific and correspond to the employee’s misconduct.
- Include proof that the employee received the warning and had an opportunity to respond.
- Allow reasonable time for the employee to correct the issue.
Additionally, in most cases, one warning letter isn’t enough. There’s often a need for follow-up letters if the issue persists.
Host
How does this differ under DIFC laws?
لودميلا يامالوفا
The DIFC operates under a separate legal framework, where employment matters are more contract-based. Unlike the UAE labor law, the DIFC laws don’t recognize arbitrary dismissal. Everything depends on the terms agreed upon in the employment contract.
Host
Fascinating. Here’s another question from Mansour: “I’ve been made redundant after eight months of employment. My employer is offering one month’s notice and two months’ severance. I thought I was entitled to three months.”
لودميلا يامالوفا
In the UAE, arbitrary dismissal can result in compensation of up to three months’ wages. However, this depends on your contract and the court’s discretion. Since you’ve worked only eight months, the court may deem two months’ severance reasonable. I’d recommend reviewing your contract for additional terms.
Host
Thank you, Ludmila. Here’s another question from Maxime: “Is it legal for a company to deduct the cost of a visa or other employment expenses from the settlement when an employee resigns after serving the notice period?”
لودميلا يامالوفا
No, it is not legal. This is one of my favorite questions because many companies still try to do this. The law clearly states that any costs or expenses required to make an employee work legally in the UAE are the obligation of the employer. Deducting such costs from the employee’s settlement is against the law.
Host
Can we revisit the topic of warning letters? You mentioned they need to include proof and allow time for the employee to correct their performance. Could you elaborate on what this entails?
لودميلا يامالوفا
Certainly. A warning letter must provide clear evidence of the employee’s misconduct or failure to meet expectations. It should also allow the employee sufficient time to address the issue. For instance, if an employee is underperforming in sales, giving them only one week to improve might not be reasonable. However, if the issue is something like consistently falling asleep at their desk, a week might be sufficient to correct the behavior.
Additionally, the warning letter must align with the employee’s original job responsibilities as outlined in their contract. Employers cannot impose new, unreasonable expectations later and penalize employees for not meeting them.
Host
That’s interesting. Are these rules different under DIFC employment law?
لودميلا يامالوفا
Yes, they are. DIFC employment law is more contract-focused. There’s no provision for arbitrary dismissal under DIFC law, unlike the UAE labor law. Employers and employees in DIFC must rely entirely on the terms of their contracts.
Host
We have a question from George, who says, “I’ve been terminated after 18 months of working part-time. Am I entitled to the same severance benefits as a full-time employee?”
لودميلا يامالوفا
In the UAE, there’s no distinction between part-time and full-time employees in terms of benefits. As long as you’re employed under a valid visa, you’re entitled to the same benefits as a full-time employee, including severance pay and other entitlements.
Host
Here’s another question from Vauta: “Are service fees calculated based on the built-up area, including the balcony? My apartment has a large balcony, so we’re paying high service fees.”
لودميلا يامالوفا
Yes, service fees are typically calculated based on the total square footage listed in the title deed, which includes balconies and other outdoor spaces. This is standard practice in the UAE.
Host
We have a quick one from Faisal: “I applied for a visa for my sister-in-law, her daughter, and her husband. Her husband’s visa was refused. We haven’t been told why, and a travel agent says I can get a refund. Is that true?”
لودميلا يامالوفا
Visa application fees are generally non-refundable, though the travel agent may be referring to their own service fees. As for the reason for refusal, the immigration authorities do not disclose this information, often citing matters of state security. If you believe the refusal is an error, you may need to wait three to six months before reapplying.
Host
Thank you, Ludmila. We’re almost out of time, but one last question: “If an employer doesn’t issue a formal warning and terminates an employee, does the employee have any legal recourse?”
لودميلا يامالوفا
Yes, absolutely. If an employee is terminated without due process, such as a formal warning or a valid reason, they can challenge the termination in court. In most cases, the employee would be entitled to compensation, including arbitrary dismissal compensation, notice pay, and end-of-service benefits.
Host
Ludmila, as always, your insights are invaluable. Thank you for joining us today.
لودميلا يامالوفا
Thank you. Always a pleasure to be here.
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