Banks Freezing End of Service Entitlements

What to Do if Bank Freezes Final Settlement After Switching Jobs
Suppose this were to happen: you lose your job and find another one that pays less, so you immediately intimate your bank of the change in employment and find your final settlement frozen just because the new employer is not listed with the bank. You have enough salary coming in from your new job to service the installments on your existing loans, yet the bank will have nothing of releasing your dues.

This is not an isolated incident in the UAE, and if this were your case, then it’s time to know about your rights and options. So, can your bank, legally, withhold your end-of-service entitlements or final settlement in this context? Let’s break it down.

Understanding the Bank’s Actions
The basis on which the bank will freeze your funds, even when you are still able to service your loan obligations, usually rests on the terms of the loan agreement you signed. This, in turn, means your options are going to largely depend on what the details of your agreement show. Two possible scenarios exist:

Scenario 1: Contractual Provisions Allowing the Freeze
Sometimes, your loan agreement can specify that you need to draw at least a certain minimum monthly salary as a prerequisite for the loan. This is typically employed as a kind of guarantee that gives assurance in particular of your capability to repay the loan amount taken in advance. If your monthly salary drops below this minimum value, the bank may trigger a clause that enables them to freeze your final settlement, whether or not you are in default on the loan payments.

In this case, the bank can legally hold on to the final settlement depending upon the conditions of the contract between them. Laws in UAE like Article 715 of UAE Civil Transactions Law permits allowing a loan to be tagged along with the condition of security, pledge, or mortgage.

In other words, if these are the conditions in your agreement, then the bank is not in contravention of UAE law and/or public order. This therefore will give the bank the right to lawfully deduct or freeze your settlement, as they approved the loan at a salary level that they considered adequate to protect their interests.

Scenario 2: There Are No Such Contractual Provisions
It may not be legally justified for the bank to hold the final settlement if there were no clauses in the loan agreement related to the minimum salary requirement or any clause that allows the bank to withhold your final settlement upon a decrease in salary.

In this regard, the bank shall not freeze your final settlement in case:
• You are not in default of your loan obligations, and
• Your new salary is still sufficient to pay the monthly installments of the loan.

If both of the above exist, then you have enough reason to approach the bank to unfreeze your account. You may need to approach the bank with proof that your new salary can still meet your loan obligations. It is also likely that even now, the bank may offer to restructure the loan in view of change in your salary. This may sound superfluous, but the restructuring can actually offer an opportunity to cut down on your monthly payments, making it easier for you to be able to afford it longer term.

What Should You Do If the Bank Refuses to Release Your Settlement?
If, in case of a bank continuing not to release your end-of-service entitlements despite approaching them to resolve the matter, you may do the following:
• Review Your Loan Agreement: Check your agreement for any clauses that enable the bank to apply this action. Look at every word regarding salary requirements or end-of-service payments being in the nature of collaterals.
• Approach the Bank: Write to the bank while providing proof of your current salary and financial ability with which to service the loan.
• Loan Restructuring: You can also demand loan restructuring according to your revised salary. This is either an extension of the tenure of the loan or the amount you pay every month.
• Lodge a Complaint: If, after all, the bank does not release your settlement, you can file a formal complaint to the Central Bank of the UAE or to Sanadak, the UAE’s consumer protection platform. Your complaint should mention your right to have your money returned based on the UAE Civil Transactions Law and what the bank is supposed to do based on the regulations and guidelines on consumer protection by the Central Bank.

Protecting Your Future
It always pays to be one step ahead, and as transparent as possible with your bank when there is a significant change in the status of employment or income. This may reduce chances of funds freezing for an unknown reason. Secondly, read your loan agreement in detail before signing, making sure you know what rights the bank has, and what you are obliged to do.

Conclusion
Whether your bank has legal rights to withhold your final settlement in case of a job change is, of course, a matter of the exact contractual terms agreed upon between you and the bank. In that case, if there is a provision in the contract stating that they could freeze one’s funds due to a salary decrease, then they can be considered justified. In the absence of this, it may not be justified for the bank to freeze your funds if the salary is sufficient to cover installments on a monthly basis.

In such a case, one would be advised to consult with an attorney who can best discuss and make the proper decision regarding one’s rights. For a situation like this, at LYLawyers, we can represent you in court due to the financial situation presented and give you the legal representation needed to settle your case. Feel free to call us today and book your appointment so that we may take you through such woes.

Understanding Protections for Victims Under UAE Domestic Abuse Law

The UAE’s fight against domestic violence has evolved over time, with the government passing Federal Law No. 13 of 2024 on Domestic Abuse (the “New Law“). First and foremost, this legislation superseded Federal Decree-Law No. 10 of 2019 and broadened the scope of definition for domestic abuse, coupled with further protection for victims.

From a victim’s standpoint, it is crucial to understand the protections available, the mechanisms in place for reporting abuse, and the support services that can be accessed. Below is an analysis of these protections and the steps a victim can take to report a case.

Protections of Victims Under the New Law
The New Law provides a number of layers to protect victims in order for them to come forward safely and find much-needed support. The protections include the following:

  1. Broader Definition of Domestic Abuse
    The definition of domestic abuse can now include everything from physical abuse through psychological, sexual, and economic harm. This means coercive control, financial manipulation, or even emotional intimidation are abuses in their own right, against which protection can be sought.
  2. Emergency Protection Orders (EPOs)
    The victim may now apply for what is termed an Emergency Protection Order, a court order granting the victim immediate protection. In essence, EPOs are meant to restrain the abuser from communicating with the victim, entering into the victim’s home, and harassing in whatever manner or communicating with the victim. An EPO can be issued in the absence of the abuser and is enforceable the very moment it is issued.
  3. Restraining Orders and Long-Term Protection
    In addition to EPOs, victims can also seek long-term protection through restraining orders. These orders grant continued protection against the abuser for a longer period and afford a legal means of keeping the abuser at a distance.
  4. Access to Shelters and Support Services
    Victims have the right to temporary shelter, counseling, and rehabilitation programs. Such services offer a haven for the victims to protect themselves and take necessary psychological and emotional counseling in overcoming the traumatic abuse.
  5. Medical and Psychological Assistance
    Medical treatment and psychological counseling also form part of the protective measures for the victims. By law, healthcare facilities are charged with the provision of the necessary care for the victims and the reporting of suspected cases of abuse to the appropriate authorities.
  6. Right to Confidentiality and Non-Retaliation
    The New Law has kept the victim’s identity and other details concerning the case private. It is also protective against the abuser’s retaliation, which, in other simpler words, signifies that any threatening behavior, harassment, or inflicting more harm on the victim for reporting the abuse will result in a more extended sentence given to the abuser.

Filing a Domestic Abuse Case: A Step-by-Step Approach for Victims
It is intimidating and overwhelming for the victims when it comes to reporting a domestic abuse case. The New Law has, however, provided a clearer route of reporting and supporting mechanism so that this process becomes easier and more accessible. Following is the step-by-step process of how the victim can report a case:

  1. Call the Police or Emergency Services
    If the victim is at immediate risk or in danger of their life, it advises calling 999-the UAE police for emergencies-or reporting to the nearest police station. The police are trained to handle cases of domestic abuse and can provide protection on the spot, initiate an investigation, and refer the victim to shelters or medical attention.
  2. File a Complaint with the Family Protection Department
    Victims can also directly approach the Family Protection Department at the police station. The Family Protection Department handles the cases of domestic abuse and issues EPO or restraining orders against the offender.
  3. Seek Medical Care and Report Abuse
    If the victim has sustained injuries or needs any medical assistance, then they need to be treated at the hospital or clinic. Any hospital or clinic medical staff is bound to document any injuries compatible with domestic abuse. The physician’s documentation could be evidence in a case.
  4. File for a Protection Order
    A victim may make an application for a Protection Order through the Family Protection Department or courts. Legal services are usually provided to support a victim in making such an application. Once granted, the Protection Order restricts the movement and contact of the abuser with the victim.
  5. Contact Social Services or Victim Support Centers
    Presently, there are numerous bodies and facilities that provide services to the victims of domestic abuse in UAE. Some of them provide shelter facilities while others offer counseling facilities; a few even offer free legal services. The victim may go to such centers on their own or at the police’s recommendation.
  6. Utilize Reporting Hotlines and Apps of the UAE
    The UAE has established several dedicated hotlines and mobile apps through which domestic abuse can be reported. Some of them are listed below:
  • For Women and Children
    • EWAA Shelter for Women and Children on hotline 800 7283: Dedicated to supporting women who are victims of domestic violence.
    • Dubai Foundation for Women and Children (Dubai) on 800 111: Offers victims immediate protection and support services in accordance with international human rights obligations.
    • Hemaya Foundation for Children and Women (Ajman) on hotline 800himaya (800 446292): Providing care, shelter and rehabilitation programs for victims of domestic and community violence in all its forms.
    • Aman Centre for Women and Children through RAK Police on 07-2356666: Ensures shelter, protection and legal aid for victims of violence and trafficking in persons.
    • Protection Foundation for Women and Children (Ajman/Local) on 0508973223: Strives to provide the necessary assistance and psychological support to victims of violence, women and children.
  • For Children
    • Child Protection Centre (Sharjah) on toll-free helpline number (Sharjah/ Local) on 800 700: For reports related to children exposed to risks and attacks of all kinds, such as physical, sexual, and emotional abuse, and neglect.
    • Child Protection Centre (Abu Dhabi/ Federal) on 116111: Can be used to report abuse against children, including domestic violence.
  • For Families / General Support
    • Family Welfare Authority (Abu Dhabi/ Al Ain/ Local) on 8005354: Allows disputing parties to submit a request to the Social Support Centres to look into the problem and amicably reach a solution.
  • Mobile Reporting Options
    • Police Eye App: Allows residents to report domestic violence cases discreetly through a mobile application.
    • DFW App: offers victims immediate protection and support services in accordance with international human rights obligations
  1. Engage a Legal Representative
    A legal representative can be quite useful in guiding the victim through the legal process. Lawyers can assist the victim in filing their complaints, seeking Protection Orders, and even in court appearance.

Important Points to Note by Victims
Victims of domestic abuse in the UAE are now further protected legally. The New Law goes a long way in providing wider definitions of abuse, immediate and long-term protective measures, a robust infrastructure of support, and importantly, has eased the process of reporting abuse without retaliation or exposure.

Identifying these rights and protections can make all the difference for victims and their loved ones in their search for safety and justice. If you, or someone close to you, is a victim of domestic violence, we encourage the contacting of law enforcement, social services, or a legal professional if necessary to seek options for relief and protection.

UAE Domestic Abuse Law: Key Updates & Evolution (2019 vs. 2024)

The UAE has recently updated its domestic abuse laws with the introduction of Federal Law No. 13 of 2024, superseding the 2019 regulations. These changes reflect a broader scope of protection, incorporating newer forms of abuse and expanding support for vulnerable groups. Below is a detailed comparison highlighting the key differences between the 2019 and 2024 laws, shedding light on the evolution in legal frameworks surrounding domestic abuse in the UAE.

Feature Federal Decree-Law No. 10 of 2019 Federal Law No. 13 of 2024
Title of the Law Federal Decree-Law No. 10 of 2019 on the Protection Against Domestic Violence Federal Law No. 13 of 2024 on Domestic Abuse
Scope and Definition of Domestic Abuse Defined domestic abuse as physical, psychological, sexual, and economic harm caused by a family member to another. Expanded the definitions with specific criteria for each type of abuse, including clearer distinctions between types of harm. Added protections for domestic workers.
Inclusion of Domestic Workers No specific mention or inclusion of domestic workers under protection. Explicitly includes domestic workers as protected individuals under the law.
Physical Abuse Defined as any physical harm caused to the victim’s body, even without visible injury. Retains the original definition but adds new criteria: repeated threats or gestures causing fear, confinement or restriction of movement, and acts resulting in physical or mental disability.
Psychological Abuse Defined as any act or word causing emotional or psychological harm to the victim. Expands definition to include coercive control, cyberbullying, and isolation tactics. Adds criteria for non-physical threats, harassment, and intimidation through electronic means.
Sexual Abuse Covered non-consensual acts of a sexual nature, including harassment and exploitation. Adds specific criteria: sexual coercion through threats, withholding resources in exchange for sexual acts, and digital exploitation (e.g., demanding explicit content).
Economic Abuse Defined as depriving the victim of their financial resources or control over the use of their money. Provides a more detailed breakdown: withholding salaries, using victim’s financial resources without consent, creating financial dependency, and incurring debt in the victim’s name.
Electronic Communication Restrictions Did not include specific provisions on restricting electronic communication as a form of abuse or in protective orders. Introduces new restrictions specifically for electronic communication. Protective orders can now include: <ul><li>Blocking electronic communication between the abuser and victim, including texts, emails, and social media messages.</li><li>Prohibiting the use of electronic devices to harass or intimidate the victim.</li><li>Restricting access to electronic information or data that may compromise the victim’s safety.</li></ul> Additionally, digital coercion, such as forcing the victim to share personal content or using threats via electronic means, is now classified under psychological and sexual abuse.
Protective Orders and Restrictions Allowed for the issuance of restraining orders by the Public Prosecution, with a maximum duration of 6 months. Adds new restrictions: prohibiting electronic communication, enforcing electronic monitoring for compliance, and introducing emergency protection orders for immediate relief.
Financial Penalties Fines ranged from AED 1,000 to AED 10,000 for restraining order violations, and up to AED 5,000 for other forms of abuse. Increased fines, ranging from AED 5,000 to AED 50,000. Violations of restraining orders can now incur fines up to AED 20,000. Expanded penalties for economic and psychological abuse.
Imprisonment Imprisonment of up to 3 months for restraining order violations, and up to 6 months for domestic abuse offenses. Imprisonment remains up to 6 months but includes double penalties for repeated offenses within one year. Applies imprisonment for severe economic or psychological abuse cases.
Focus on Rehabilitation Limited focus on rehabilitative measures, mostly emphasizing punishment. Strong emphasis on rehabilitation, including mandatory counseling, behavioral correction programs, and ongoing monitoring of rehabilitative progress.
Reporting and Victim Support Victims could report incidents to authorities, and the Public Prosecution could issue protective orders. Enhances victim support with clearer reporting mechanisms, coordination between agencies, and emergency shelter and counseling services.
Special Protections for Vulnerable Groups General protections for children and family members but did not specifically address additional groups. Expands protections to cover children, domestic workers, and vulnerable individuals. Includes specific protections for these groups and more detailed emergency response protocols.
Reconciliation Procedures Public Prosecution could propose reconciliation before proceeding with action. Maintains reconciliation procedures but places more restrictions on reconciliation in severe cases and limits reconciliation where children are involved.
Penalties for Repeat Offenses Penalties could be doubled for repeated offenses but only in severe cases. Doubles penalties for any repeat offense occurring within one year, regardless of severity. Introduces stricter enforcement for repeated violations of protective orders.
Implementation and Enforcement Implemented through Public Prosecution and family protection centers. Strengthened enforcement mechanisms with increased coordination among law enforcement, social services, and healthcare providers. Improved training and resource allocation for handling domestic abuse cases.
Relation to Previous Laws Coexisted with other personal status and family protection laws, with limited interactions. Repeals and supersedes conflicting provisions in the 2019 law, making it the primary legislation for domestic abuse cases moving forward.
Agencies and Authorities Involved Involved the Public Prosecution, Family Protection Centers, and Police Authorities for enforcement and reporting. Broader involvement of agencies: Public Prosecution, Family Protection Centers, Police Authorities, Social Services, and Healthcare Providers. Mandates closer coordination between these entities and introduces roles for Community Development Authorities to ensure holistic support for victims. Additionally, the Ministry of Human Resources and Emiratisation is included for cases involving domestic workers.

In conclusion, the evolution of the UAE Domestic Abuse Law reflects a commitment to enhancing the safety and rights of all individuals, with a focus on more inclusive and comprehensive protections for victims. If you or someone you know needs assistance navigating these changes, please contact our law firm for expert guidance and support.

Understanding New UAE Law on Domestic Abuse: A Holistic Legal Perspective

The United Arab Emirates issued Federal Law No. 13 of 2024 regarding Domestic Abuse, herein referred to as the “New Law,” on October 2, 2024. Certain amendments had been made in the existing law, and more protection was given to victims of domestic abuse. The New Law was issued to complement and eventually replace Federal Decree-Law No. 10 of 2019, which had several omissions, due to narrowness, to fill in and give further protection to the vulnerable ones.

To this end, family and criminal lawyers seek to investigate these amendments, analyze the consequence, and provide a weightier understanding of how such amendments will impact citizens and families residing within the UAE. This article pulls together comments, views, and analyses previously provided to our readers to offer our clients a better, integrated view of the New Law and how it actually works in life.

Major Developments provided under Federal Law No. 13 of 2024

1. Wider definitions of abuse and new categories of protection
While the Old Law only listed different forms of domestic abuses such as physical, psychological, sexual, and economic abuses without giving substance to what each constitutes, this New Law has bridged the gaps by giving substantial and specific definitions to such forms as psychological and economic abuses, now standing clarified that any act which may affect the victim’s mental, emotional, or economic well-being falls within the purview of domestic abuse.

Also, the New Law brings domestic workers into the circle of protection as “family members” for purposes of the definition. It follows that domestic workers are now brought within the ambit of protection afforded by the law on domestic abuse as potential victims, and their maltreatment at home is made accessible to the very same legal scrutiny and protection afforded to familial abuse.

2. Enhanced Protection for Vulnerable Groups
The New Law has, however made special provisions regarding the protection of vulnerable groups-children, aged family members, and domestic servants. Such persons are those who may be in situations that may render them unable to help themselves. Explicit protection by the legal system should therefore accord to such persons.

It has empowered them through clear provisions of the channels they have to report the abuse and seek legal redress. This is contrasted with the Old Law, which had such provisions, but they were ambiguous and at the discretion of courts.

3. Establishment of Fully Fledged Support Systems
The New Law is peculiarly detailed on the mechanisms of victim support, including shelter provisions in cases of emergency, counseling, and rehabilitative programs for victims. It could be that such services may be accorded with the victims one way or another, though the simplified process is aimed at immediate and long-term support.

This is a holistic approach, taking into consideration not only the immediate physical or emotional damage of domestic abuse but also the long-term psychological trauma to which the victim is subjected. In the Old Law, such measures were by and large absent, and attention was paid more to penalizing the offender than to the recovery and reintegration of the victim into mainstream society.

4. Stricter Penalties for Perpetrators
While the fine has increased under the New Law from the previous range under the Old Law-from AED 1,000 to AED 10,000-to a new range of AED 5,000 to AED 50,000, violation of a restraining order attracts a fine of up to AED 20,000, as compared with the maximum prescribed of AED 5,000.

About imprisonment, the New Law also retained six months’ imprisonment for first-time offenders but for the first time brought in this uniquely new feature of doubling the sentence in case of recidivism within a year, regardless of the gravity of the second offense. This is indicative of a hardline stance taken towards career criminals, whereas under the Old Law, the penalties for second offenses were increased only according to the gravity of the second offence.

5. Compulsory Rehabilitation Programs
Also, the New Law encompasses that offenders must attend counseling and behavioral correction programs. This eschews pure punitive measures in favor of rehabilitative ones, underpinned by more enlightened understandings of the roots of domestic violence. The move also reflects an imperative realization that punitive action must be accompanied by rehabilitation; otherwise, repeat offenses would continue unabated.

This law places the New Law not only as a punitive tool but also as a vehicle of change for society in reducing incidences of domestic abuse through educative and behavioral reforms.

Why This Law Matters: A Perspective on the Region
Traditionally, the UAE has always been in the forefront of legal reforms which harmoniously blend traditional values with modern legal principles. Only Federal Law No. 13 of 2024 has shown that the UAE is really committed to providing a safe and enabling environment for all of its residents, whatever their status or background may be: being defined as persons of protection, domestic workers, psychological and economic abuse, and providing comprehensive supporting mechanisms-the understanding of the complexity of domestic abuse has been deepened.

This new legislation has raised the bar as far as laws on domestic abuse are concerned in this region. The law meets international threshold criteria on human rights and is likely to provide the model on which neighbor jurisdictions will base their reform processes in an effort to offer better protection to vulnerable individuals.

How This Law Affects You: Practical Implications
Should you or anybody close to you happen to be in a domestic abuse case, it is here or a situation like this where that will turn out to be very important to know how this New Law will protect and provide recourse. The New Law has provided for more clearly defined channels of reporting, better mechanisms for enforcement; hence, the sentences have become much harsher.

In so doing, our law firm guides and advises our clients through the maze of such a legal battle-from seeking protection orders to filing criminal charges against a perpetrator or even from special services, we provide the needed guidance and representation.

Conclusion
Federal Law No. 13 of 2024 on Domestic Abuse fills in the big comprehensive legislative lacuna that did exist, while introducing new and more robust mechanisms into this fight against domestic violence in all its forms. What is more significant, the quantum leap for the UAE in putting a high degree of importance on the protection of vulnerable people and assuring victims’ access to care and justice.

Please do not hesitate to contact us for a confidential consultation if you have any questions regarding how this new law may apply to your particular set of facts and circumstances or if you need legal representation in a domestic abuse case.

Prenuptial Agreements in the UAE

Prenuptial agreements in the United Arab Emirates are a well-thought-of concept and viable for those about to engage in the bond of matrimony. They are available for both Muslims and Non-Muslims, as long as they do not violate any UAE laws and principles. These agreements go within certain legal purviews which may be quite efficient in setting expectations and protecting individual rights before and during marriage.

 

I. Understanding Prenuptial Agreements
A pre-nuptial agreement is a legal contract wherein both the parties iron out precisely what each gets in the event of separation or divorce. Rights and responsibilities of husband and wife can be made quite explicit in advance with less controversy. The main purpose of a pre-nuptial agreement is to protect individual assets and interests that either party brings into the marriage, especially in cases where there are previous marriages, children, or significant disparities in financial position.

 

II. Rule of Law Relating to Prenuptial Agreements
Prenuptial agreements in the UAE are subject to a number of legal provisions within the following:

1. Federal Laws relating to Non-Muslims:
• Federal Decree-Law No. (41) of 2022: This is the law regulating civil personal status for Non-Muslims in the UAE. Article 6(2) of the decree addresses prenuptial agreements.
2. Abu Dhabi Specific Law:
• Law No. 14/2021: This has to do with personal status for Non-Muslim foreigners in Abu Dhabi, under the administration of the Abu Dhabi Judicial Department – ADJD. The law is very similar to the federal one, in that it too outlines the framework necessary when pre-nuptial agreements are concerned within the emirate.
In an applicative case, non-Muslim residents may further apply pre-nuptial agreements that had been registered in their country of origin, adding these to their UAE marriage registration.

 

III. Prenuptial Agreements: Scope and Content
Prenuptial agreements can be extremely specific or very general documents. They can include but are not limited to the following :
• Separation Terms: Conditions and procedures for asset division, spousal support, and financial responsibilities upon separation or divorce.
• During Marriage: Terms and conditions of financial management, obligations, and rights during marriage.
• Child Custody and Support: Plans for child custody, visitation rights, and child support.

 

IV. When to Consider a Prenuptial Agreement
The prenuptial agreement becomes more relevant in the following circumstances:
• Previous Marriages: to protect one’s assets and responsibilities from previous relationships.
• Income Disparity: where the level of income or wealth is substantially different between partners.
• Mixed Nationalities and Religions: to address issues over jurisdictions and potential legal misunderstandings.
• Asset Protection: to be able to actually divide and protect the assets in case of divorce.

 

V. Drafting and Registration of Prenuptial Agreements
1. Drafting:
• Representation by Counsel: Each party should retain his or her own counsel so that their interests will be duly protected, and the agreement will be fair as well as legally sound. Sometimes, couples use one mutual counsel to draft the agreement.
• Clarity and Detail: A well-drafted prenuptial agreement needs to be clear, so the language used should be easily understandable and comprehensible to the parties to it. Inclusion of duration of marriage and divorce possibilities.
2. Registration:
Abu Dhabi Judicial Department (ADJD): The pre-nuptial agreements can be easily registered through the ADJD. The department does give a standard template in the Arabic-English format for the prenuptial agreement against the payment of a fee amounting to AED 950.
• National Applicability: Such registration services that the ADJD offers stand available to all UAE residents but are not limited to those residing in Abu Dhabi. This therefore enables residents throughout the UAE to make use of ADJD’s services to legalize pre-nuptial agreements.

 

VI. How to Ensure a Prenuptial Agreement is Effective
For a prenuptial agreement to be effective:
• Clear Language: The agreement should be written in an easy and simple language so that when both parties understand it, they will not be stressed.
• Being Detailed and Specific : Not only the marriage terms but the divorce conditions also need to be attended to in detail.
Also, inclusion of summaries or tables can be done in order to summarize the terms of the agreement so that both parties are in an easier position to review and understand what terms and provisions are included.

 

VII. Conclusion
Prenuptial agreements in the UAE are an effective method of managing legal and financial expectations between two persons in contemplation of marriage. Prenuptial agreements, which are subject to Federal and Emirate-specific laws, take a very organized approach to asset protection and relationship management. Ensuring clarity and detail is observed and properly registered by the couple safeguards their interest and diminishes the potential conflicts; thus, making it a decent option for many.

Power of Attorney (POA) in the UAE

Under UAE law, the process of empowering one to make or perform acts on behalf of another must follow the necessary formalities to ensure its legality and accountability. In contrast to many Western practices, the UAE requires a higher sense of formality, and mere agreements or simple representations cannot suffice for this purpose. The following article will take a closer look at Powers of Attorney in the UAE, explaining, amongst other things, the requirement, the process, and the resulting legal implications.

What is a Power of Attorney? 

The Power of Attorney is a formal legal document that has been executed by one person, called the principal, authorizing an agent to act for that person. It establishes a kind of agency relationship wherein the agent can do specific acts or make decisions in the name of the principal.

Why is POA important? 

In the United Arab Emirates, it is very important that a POA for representation should be available whenever a deal in private transactions or in dealing with any government agency is to be made. Unlike in some Western jurisdictions where less formal agreements might be acceptable, a POA in the UAE must be officially notarized. This is just to ensure that in all dealings, legal clarity is accorded to all parties involved and that whatever actions will be taken are within the ambit of the law.

The Formal Process
1. Notarization Requirement: In the UAE, a POA must be notarized by an official notary. Notaries in the UAE are licensed professionals under the jurisdiction of UAE Courts, which guarantee the authenticity of the document and validity in law. The documents notarized bear official court stamps regarding their authenticity.
2. Legislation that will govern POAs:
• Civil Transactions Law: The present law to regulate and define the formation and its validity. While the law does not dictate detailed formalities, it does provide that as a minimum, notarization is a pre-requisite for legal enforceability.
• Criminally Committed Laws Sanctions. This corresponds to the abuse of POA; agents shall be held liable in case there is an offense against their duties and commitments.

3. Notaries: Each Emirate has its independent notarial centers, but for some, they are linked to either a particular Emirate’s Court or the Federal Court. In Dubai, notaries are accredited under the Dubai Courts. There is also the UAE Ministry of Justice that performs notarization.

Notary Services Today: The facilitation of notarization services has moved from physically visiting a notarial centre. There are also online options through:
• Dubai Courts Portal: An authenticating UAE Pass will be required. Drafts of the POAs submitted online will be verified for their details by the notary over the phone.
• UAE Ministry of Justice: A video link is provided wherein the notary will send an OTP for document confirmation.

Language and Translation Requirements: The POAs should at least be in Arabic, though other languages may be included such as English or Russian. It is no longer stringent to have a legal translation; therefore, it will be easier for the non-Arab speaking nationals.

General Requirements of a POA
1. Eligibility: The principal and the agent should at least be 21 years old and be of full capacity to enter into a contract.

2. Particular Conditions – Article 925, Civil Transactions Law:
• The principal should have the right to delegate the powers.
• The agent shall be legally competent to exercise the powers delegated to him.
• The purpose and scope of the agency are well defined.
• The agency does not need by its nature the personal attendance of the principal.

Types of Powers of Attorney
1. General and Absolute Power of Attorneys: Encompass broad powers in various matters.
2. Special Powers of Attorney: Narrowed to specific, particular transactions or areas of interest, such as:
• Real Estate Transactions: To buy or sell specific properties.
• Corporate Matters: To retain shares or business transactions.
• Geographical Restrictions: The location of representation – example, will be the DIFC.

International POAs

POAs are issued either for actions in and outside the UAE. International usage is increasingly occurring particularly now that multiple language formats have been permitted.

Legal Consequences of Breach
1. Civil Liabilities: In the event of misuse of the POA by the agent, the principal has the right to seek restitution of all damages or compensation for losses incurred. This is stated under Articles 944 and 958, Civil Transactions Law.
2. Criminal Liabilities: Misuse, such as embezzlement or fraud, may give way to criminal charges under the Crimes and Punishment Law, Article 453.

Termination and Cancellation
The agency relationship would be considered terminated upon:
• The completion of the intended tasks.
• When the POA expires or becomes limited by time.
• By death or legal incapacity of either party.
• By mutual agreement, or by unilateral termination by either party.

On the date of execution, cancellation of a POA should be executed by signature through a notary, either in person or online.

Common Abuses and Recommendations
The most frequent problems that one encounters with a POA are the misuse of it by estate agents or the issuance of fake POAs. To avoid those risks:
• It is highly advisable to limit as much as possible the scope and duration of the POAs.
• Bank and authorities must verify the genuineness and particulars of POAs relating to transactions, especially property transfer.
• Grants of POA are precautionary measures, with the use of judicial review.

Conclusion

The Powers of Attorney in the UAE are considered some of the most powerful weapons in the law, allowing a person to pass on authority. While providing ease and convenience, it also contains certain risks when not handled appropriately. Understanding formal requirements and their legal implications can minimize such risks and secure your rights and interests.

Further clarification and specific questions could be sought from lawyers who would lead you through the maze called POAs in the UAE.

New UAE Employment Law Amendments

Employment Law in the UAE has undergone significant updates with the introduction of the Federal Decree-Law No. 9 of 2024. This decree amends certain provisions of the UAE Employment Law, specifically Federal Decree-Law No. 33 of 2021, with particular focus on Articles 54 and 60. These changes, effective from August 28, 2024, bring four major amendments to the existing legal framework.

I. KEY AMENDMENTS

1. Longer Statute of Limitation for Employment Cases
Perhaps most notably, the new statute extends the statute of limitation to file employment cases. This new law allows parties to file a court case as long as 2 years after the employment relationship has been terminated. Actually, it extends the time period from the previous 1-year statute to 2 years. Where the statute of limitation is the time within which parties ought to come to the court with their disputes, and after that time lapse, the right to apply to the courts gets forfeited. In this new period, employers and employees both are subjected. This amendment comes through Federal Decree-Law No. 9 of 2024, amending Article 54 of Federal Decree-Law No. 33 of 2021.

2. Amendment in the Procedure for Appeal against MOHRE Decisions
It has also amended the procedure for disputing the decisions of the MOHRE. The right to decide on the employment disputes whose claim amount is less than AED 50,000 has been given to MOHRE. Parties who will disagree with the MOHRE’s verdict would approach the Court of Appeals earlier. Objections under the new law in this respect are, therefore, to be submitted to the Court of First Instance but no later than 15 days. A judgment of the Court of First Instance is now final and may thus be enforced. An appeal to the Court of Appeals will no longer be possible. This is accordingly the content of Federal Decree-Law No. 9 of 2024.

3. Increased Sanctions for Violations of Labor Laws
Sanctions for violations of UAE Labour Laws have lately been considerably increased. The quantity of the sanctions that have just been set ranges from AED 100,000 to AED 1,000,000 in respect to, amongst others, the following contraventions:
• Hiring and employing employees without a valid work permit.
• Abuse of a work permit by placing it at the disposal of an unintended party.
• In the event of any winding up or closure prior to making payments to the workers’ dues.

Examples are the hiring of non-well-registered employees and the selling of work visas to people not related to the business. On the positive note, the revised fine amounts to five times more than the previously recorded fines standing between AED 50,000 and AED 200,000, indicating a more strict application/implementation. This was through the amendment to Article 60 of the UAE Employment Law by way of Federal Decree-Law No. 9 of 2024.

4. New Fines for Violations in Respect of Emiratization
The new law for the first instance introduced a type in penalties with respect to the Emiratization requirements whereby serious punishments are imposed on employers who employ fictitious employees just to fulfill legal obligations of employers or assist them to fulfill their obligations. Further, fictitious employees reap benefits from any program, scheme, or pension which punishes them. To this, some fines include:
• Fines: The minimum amount is AED 100,000 and goes up to AED 1,000,000.
• Benefits that were an incentive or returned benefit for which the employer has already paid out of pocket should be returned without charging their value from the employees.

These penalties help in harmonizing the policies of Emiratization and preventing abuses with regard to benefits related to employment. The Federal Decree-Law No. 9 of 2024, which amends Federal Decree-Law No. 33 of 2021, makes the aforementioned modification to Article 60.2.

II. CONCLUSION
Recent amendments to the UAE Employment Law demonstrate a serious movement as far as the way employment disputes are dealt with and violations are penalized. The extension of the statute of limitation also comes into focus, besides a new mechanism of appeal against the decisions of MOHRE, increased fines for a host of violations, and penalties relating to Emiratization—all points toward a more strict regulatory regime in the days to come. All these changes, therefore, coming into effect from August 28, 2024, reflect that the UAE is seriously committed to enhancing the regulations of the labour market and their compliance in a much better way. The changes would be in place so that both employers and employees can be at par with each other, acquainted with the changing face of the legal world.

UAE Data Privacy Laws and Facial Recognition Technology: A Comparative Approach with the EU GDPR

With the increase in the number of face recognition technologies in the UAE, organizations-or at least, should-be increasingly tuning into some quite strict data privacy laws. This Q&A discusses some key issues relevant to the use of face recognition technologies-namely, consent, data transfers, and risk mitigation-under UAE’s Personal Data Protection Law (PDPL) versus EU’s General Data Protection Regulation (GDPR).

Q1: The UAE has passed legislation on data protection that regulates facial recognition technologies. How does this differ from the EU’s General Data Protection Regulation?
The Federal Decree Law No. 45 of 2021, shortly referred to herein as the PDPL and brought into practice to date, is the law governing personal data processing in the UAE, including-but not limited to-biometric data such as facial recognition. Such consent to process an individual’s biometric data is required to be explicitly obtained before it may be collected or otherwise processed under the PDPL, although much-needed guidance provided by the Executive Regulations has yet to be published.
Contrasting that, the GDPR within the European Union requires express consent and even has substantive provisions on the processing of data in a special category, such as biometric information. While the underlying principles are similar, it would appear that the GDPR is better nailed down with respect to stating clearly the manner of consent, let alone what constitutes consent in the first place.

Q2: Does explicit consent provided to UAE’s PDPL and EU’s GDPR constitute consent to use facial recognition data?
Consent by both the PDPL and GDPR should be explicit, informed, and affirmative before processing any personal information. What this simply means is that UAE subjects need to know what their information regarding facial recognition will be put to and approve this off their own free will. However, the GDPR has elaborated on what constitutes “freely given consent” in strict terms so that consent is not combined with other types of terms of service.
Both laws also give individuals the right to withdraw consent at any time, and businesses must comply with this request.

Q3: According to the PDPL and GDPR, a business has to store biometric data in what manner that will be considered secure?
Thus, protection under the concerned jurisdictions of PDPL and GDPR enshrines the importance associated with its secure storage. Protecting personal data, in the meantime, calls for taking technical and organizational measures by both PDPL and GDPR, including data encryption with a view to securing it from being compromised, and pseudonymization in case data is compromised with a view to minimizing identifiability of information.
Under the GDPR, explicit enumeration has been made for data minimization to make sure no more than the minimum data is collected and stored. PDPL copied these principles, too, but further explanation is awaited from the upcoming Executive Regulations with regard to the local/cloud storage solution.

Q4: How is the cross-border transfer in the UAE and EU in regard to facial recognition data carried out?
Under both the PDPL and the GDPR, cross-border data transfer is highly regulated. According to Article 22 of the PDPL, personal data transfer and hence facial recognition data outside the UAE is not permitted, except in cases where the country to which the transfer is to be made provides an adequate level of protection.
However, GDPR also prohibits transfers to third countries that do not offer adequate protection, although it does provide mechanisms for transfers in the form of Standard Contractual Clauses (SCCs) and Binding Corporate Rules (BCRs). Similarly, PDPL does contemplate transfers based on contractual agreements, but details related to this would be given in the Executive Regulations.

Q5: What is valid consent under the UAE’s PDPL, and what was the position under the GDPR?
Both the PDPL and the GDPR have the following requirements for valid consent:
• Freely given, specific, informed, and unambiguous.
• Easily revocable: An opportunity must be provided at any time to withdraw consent.
Explicit consent under the GDPR has very clear limits, notably ruling out pre-ticked boxes or implied consent. The PDPL takes a broadly similar tack but is still awaiting more detailed interpretation about how businesses should ensure they get valid consent.

Q6: What are the legal risks associated with the use of facial recognition technology and how businesses in the UAE and the EU can mitigate such risks?
Data breach and failure to adhere to the law present the most serious legal risks both in the UAE and the EU. To overcome such risks, businesses ought to:
• The processing needs to be subjected to a Data Protection Impact Assessment (DPIA). It is pretty expressive on the part of both PDPL and GDPR that such processing shall be subjected to a DPIA considering it as a high-risk activity akin to the use of face recognition technology.
• Where large volumes of sensitive personal information is being processed, the business should designate a Data Protection Officer (DPO) – another similarly fundamental requirement under the PDPL and GDPR.
• Such measures would bring in the necessity of having robust technical and organizational controls, including data encryption and periodic audits to demonstrate compliance.

Q7: What other legal considerations should businesses consider in respect of the use of FRT within the UAE?
In addition to the PDPL, it is important to note that Federal Decree-Law No. 38 of 2021 on Copyright and Neighbouring Rights provides that filming or taking photos of a person without his free consent is prohibited. It just adds another dimension to ensure that a person’s image is not filmed or distributed without permission.
This, to a great extent, aligns with the GDPR ideology – it protects permission-based rights to privacy, along with control over one’s picture/image.

Conclusion:
On the other hand, while the UAE’s PDPL and the EU’s GDPR indeed provide a robust framework for protection against biometric data and face identification, there is anticipation for the issuance of the Executive Regulations in the UAE. In practical terms, businesses would care about the mechanisms for effective data protection that would ensure compliance.

Overview of UAE Data Privacy Laws and Use of Facial Recognition Technology

Facial recognition technology is one of the rapidly expanding in the United Arab Emirates, especially in security, retail, and customer service. On the other hand, such technologies raise key questions about privacy and legality. This blog will cover a few of the frequently asked questions a business may have when using the technology, with a current summary of the data privacy legislation in the United Arab Emirates.

 

Q1. What are the main UAE laws and regulations in relation to data privacy and the use of FRT regarding consent and data storage?
The Federal Decree Law No. 45 of 2021 Concerning the Protection of Personal Data, or PDPL, basically sets the main legislation and came into effect on January 2, 2022. However, the Executive Regulations seem not to be issued yet, including certain data needed for compliance, and therefore are likely to hold up the overall implementation process.
The PDPL sets general principles of how personal data is processed, and to this effect, the following shall be observed:
• Consent: A data subject, in the absence of any exceptions that shall be specifically provided for, should always provide explicit consent to process their personal data, including face-recognizing information. This exemption is provided under Article 4.

• Storage: Storage of the data must be secured. Once the Executive Regulations are out, specific details on storage will be provided.

 

Q2: What is the position of the law with respect to the protection of biometric data, and is there any mandate on solutions for storage locally or on the cloud?
The PDPL prescribes general criteria on how to securely store biometric data, including facial recognition. Some key concepts are:
• Technical and Organizational Measures: The controller shall adopt the necessary measures to ensure availability, confidentiality, and integrity of the personal data in accordance with Article 20.
• Procedure for Local or Cloud Storage: Details concerning cloud storage have not been issued by the Executive Regulations; in any case, whichever form of storage is used—whether local or through the cloud—it should ultimately address the legal requirements for security.

 

Q3: What is the law and regulation that governs the export of biometric data outside of the United Arab Emirates, and what to do in order to render any exports compliant?
Article 22 of the PDPL prohibits any transfer of personal data, including biometric data, outside the United Arab Emirates unless the recipient country provides adequate protection for the rights of data subjects. Article 23 does provide an exception to this general rule in the following:
• Contractual Protections: An agreement to apply the provisions of the PDPL between the receiving and sending entities regarding the information.
• Explicit Consent: The data subject has explicitly consented to the transfer.

• Contractual Necessity: the transfer is necessary for the performance of the contract between the controller and the data subject.

The Executive Regulations, anticipated shortly, will provide additional clarity regarding the cross-border transfer of personal data.

 

Q4: What is considered consent from a consumer, and what is our responsibility to ensure this is clear and to make them aware of how their data is used?

The PDPL sets a high bar for any processing of personal data, given that it requires informed, unambiguous, and affirmative consent.
• Clear and Explicit Consent: The process of consent should be intelligible, and the purpose for information collection must be clearly identified. Here, the source is a clear request with clearly defined objectives regarding the collection.

• Right to Withdraw Consent: Consent must be able to be withdrawn at any point in the process with ease.
• Exemptions from Consent: Consent is not required for archive purposes or for scientific, historical, or statistical research, provided the laws in existence are adhered to. Information providers have numerous rights, including the right to object to data processing and the right to erasure of personal information when consent is withdrawn.

 

Q5: How might we mitigate most legal issues surrounding face recognition? What are some potential risks?
Facial recognition technology presents a few legal pitfalls; it is mainly related to the violation of data privacy and sensitive treatment of biometric data. For businesses, one needs to address this in terms of mitigating risk by:
• Impact Assessments: Impact assessments on data protection shall be required where either automated data processing or processing of sensitive personal data, such as facial recognition, by a controller or processor forms part of the business model on a large scale. It involves looking at whether the processing of the relevant data is necessary and fair, listing any risks that might come up because of the processing, and suggesting ways to get rid of those risks (Article 21).
• Data Protection Officer: In light of but not limited to volume and sensitivity, Article 10 necessitates an organization to designate a Data Protection Officer (DPO) to ensure legality.

• Compliance with Copyright Law: It is pertinent also to refer to Federal Decree-Law No. 38 of 2021 on Copyright and Neighboring Rights, which prohibits taking pictures or recording a person without the permission of the subject thereof. Hence, consent is required under Article 45 before collecting biometric data.

 

This blog provides a clear and detailed overview of the key legal considerations surrounding facial recognition technology in the UAE. Businesses need to get ready for changes that are going to come and make sure their systems are adaptable to needs that may arise in the future, as the Executive Regulations have not been issued yet. If you need further guidance or have any specific legal queries, please feel free to reach out to us for a consultation.

How to Navigate a Dubai Real Estate Transaction: Common Legal Mistakes and Key Considerations

At LY Lawyers, we are conscious of how thrilling yet intellectually complicated a Dubai real estate transaction may be. Whether you are purchasing, selling, or investing, you will have to consider several legalities. Below, we highlight some common legal mistakes, key differences in Dubai’s property law, and some important considerations for any party involved in a real estate transaction.


1. Common Legal Mistakes in Real Estate Transactions
For Buyers:
Most buyers enter into real estate transactions without exercising due diligence on the transaction. This is in the form of checking on the reputation of the developer, applying for liens or disputes on the property, and verifying project approvals. The other common problem occurs when one signs incomplete documents or issues deposit cheques prematurely.
Thirdly, there is also an undue reliance by buyers on representations made by real estate agents or developers. For instance, handover and completion dates are taken on the surface without prompting critical questions such as whether the property is mortgaged or if there are multiple owners.
Buyers often attempt to handle legal matters themselves, from document preparation through property inspection, as if they knew better than the professionals. These frequent “do-it-yourself” lawyering often leaves open many of the legal details and possible legal perils. The simple rule is to seek appropriate professional advice in all legal matters and make sure one knows what financial commitment is being made.

For Sellers:
The common mistake of the seller is to rely entirely upon agents without working directly with the buyer to understand what exactly he needs. Delays in delivering within the agreed timeline or completing some documents could lead to disputes, particularly over deposits, which, at times, are retained by brokers. Secondly, many sellers do not understand the related legal obligations, such as the penalties applied to early mortgage settlements or the transferring requirements.


2. Key Differences in Dubai’s Property Law in Regards to Foreign Ownership
In fact, Dubai is generally one of the most foreign-investor-friendly cities in the UAE, with freehold areas around, specially designed to be sold to foreigners. Nevertheless, not all Dubai areas are classified as freehold. The older districts in Dubai, such as Jumeirah and pieces of “Old Dubai,” may not be available for foreign ownership. In turn, other emirates offer fewer freehold areas, thus less number of possibilities foreign investment could have.
Another privilege entitled to the foreign property investors under the Golden Visa program in Dubai is being accorded a long-term visa when buying property valued at more than AED 2 million. Visa options exist for properties worth from AED 700,000 to AED 2 million, but for a shorter term. Other specific laws an investor should be aware of are those providing for property ownership in special jurisdictions like the DIFC and ADGM.


3. Legal Considerations for Off-Plan Purchases
Off-plan is popular in Dubai, but it comes with its separate legalities. The buyer should ensure the developer is fully registered with the RERA and that the project is registered. Payments to be made into a dedicated escrow account for the project protect your investment.
The payment scheme, the time schedule of the construction and all other terms and conditions in the sales agreement must be clearly known. The buyers should maintain all records, receipts and invoices, as well as correspondence with the developer. Some special care of property specifications, such as hotel apartments or exclusive management agreements, is especial object of attention for off-plan buyers.

 

4. Protections for Developers – Recourse for Buyers
Developers in Dubai have to meet very strict requirements in terms of licensure by proving experience, financial stability, and ownership or control of the project land. Developers must also maintain escrow accounts in order to ensure that funds allocated for any given project are used for construction purposes only.
On the other side, buyers enjoy considerable legal protection. From the regulatory perspective, Dubai’s property laws are channelled through RERA and the Dubai Land Department, DLD, which provide several remedies for buyers in case the developer either delays completion or, worse, fails to deliver. Buyers can refer to established legal precedents and even block properties during disputes.
In case a developer defaults or breaches the contract, buyers also have the right to complain to RERA and take legal action against developers. In this way, buyers’ investments are protected by knowing options may be availed of.


5. New Legal Regulations in 2024
The year 2024 brought some new regulations to Dubai aimed at bringing further transparency and compliance into the real estate sector. Among these are:
• Tighter AML laws, which shine more scrutiny on brokers and agents.
• Stricter regulations on cold calling and advertising real estate to ensure better quality marketing.
• Greater utilization of blockchain technology to ease transactions and reduce the possibility of fraud.
These changes in legislation head toward a more secure and transparent real estate market for buyers, sellers, and investors.

 

6. Legal Action if Something Goes Wrong
Real estate dealings may not always go the way one would wish. If there is a dispute, much will depend on the exact conditions of the contract and the nature of the parties. Often, such disputes can be resolved with mutual agreement, but when that avenue does not work, buyers and sellers have to resort to taking legal action. The Dubai courts have been very efficient in dealing with cases related to real estate, which in turn are well-supported by established legal precedents.
The DLD can also be approached for mediation by the buyers and sellers, although the success rate is not that sure and depends on the seriousness of the agreement between both parties.


7. Protection Against Fraudulent Transactions
It is one of the most regulated real estate markets, where frauds are minimal, especially for buyers dealing with registered developers and where the transaction of the sale is conducted through escrow accounts. There may also be other payment plans, like crypto wallets through unregulated intermediaries; those are pretty much fraught with increased risk of fraud. The purchase of a property should be made through secure and transparent channels in order to avoid being targeted by scams.


8. Influence of Digitalization and Blockchain on Real Estate Law
In the digitalization of the Dubai real estate market, from its basic concept to the latest, blockchain technology is one of the new features that revolutionize the way in which transactions are conducted. Using blockchain provides increased visibility and hence much faster transaction times with the permanent non-editable records of property transactions involved. A few Dubai developers have also started to accept cryptocurrency for buying property, although the use of this medium of exchange remains evolving and its future regulation yet to be decided on.


Conclusion: How to Make a Safe and Legally Sound Transaction
Real estate transaction is one of the major financial commitments a person can make. Either in buying or selling, it is best to be well-informed, cautioned, and advised by legal experts to avoid common pitfalls and protect the investment.


LY Lawyers provides full legal support on all issues related to real estate transactions in Dubai, starting from due diligence and ending with dispute resolution. If you have any questions or need legal advice, please don’t hesitate to contact us. Be assured that our professional team will confidently lead you through even the most complicated issues that may arise in Dubai’s real estate market.