Understanding Training Costs in UAE Employment Law

In the UAE, training costs in employment contracts are a complex and often misunderstood aspect of labor law. Employers seek to protect their investment in employee development, while employees must be aware of their rights and obligations regarding training-related expenses. A recent court case has shed new light on this issue, emphasizing the importance of clear agreements and proper documentation.

What Are Legitimate Training Costs?

Training costs refer to expenses an employer incurs to enhance an employee’s skills beyond their immediate job duties. These costs may include:

  • Specialized Courses & Certifications: Programs that offer valuable, transferable skills applicable outside the employee’s current role.
  • Direct Financial Outlay by the Employer: The employer must have paid for the training and be able to provide proof of the expenses.
  • Pre-Agreed Written Agreement: A documented agreement specifying repayment terms, signed by both employer and employee.
  • Relevance to Professional Development: The training must contribute to the employee’s career growth rather than routine job training.

Common Misconceptions About Training Costs

Many employers assume that any training they provide is automatically reimbursable if an employee resigns. However, UAE courts assess whether the training provides skills beyond basic job requirements. Routine in-house training sessions, workshops, or orientations typically do not qualify as reimbursable expenses unless explicitly stated in an enforceable contract.

Case Study

A significant case that highlights the complexities of training cost recovery involved a dispute between an employer and a former employee.

  • Case Background:
    • The employee was initially under a fixed-term contract, which later transitioned into an unlimited term agreement.
    • Upon resignation, a dispute arose regarding the reimbursement of training costs.
    • The employer sought repayment of a substantial amount for specialized training.
    • The employee argued that the training had taken place before any repayment agreement was signed and that there was no clear documentation proving the employer’s direct financial outlay.
  • Key Court Findings & Criteria for Valid Training Cost Recovery

The UAE courts carefully examined several critical factors:

    1. Timing of the Agreement vs. Training: The training should align with a pre-signed agreement. In this case, the training had occurred before the repayment agreement was formalized, raising doubts about its enforceability.
    2. Evidence of Employer Payment: The employer must provide invoices, receipts, or financial records proving that the training cost was incurred.
    3. Clear Contractual Terms: The repayment obligation should be explicitly stated in the contract with clear terms to ensure transparency for employees.

This ruling reaffirmed that training costs must be substantial, directly incurred by the employer, and documented appropriately to qualify for reimbursement.

Takeaways for Employees

Employees should take proactive steps to protect their rights:

  • Review Contracts Carefully: Before signing, thoroughly understand any clauses related to training costs and repayment obligations.
  • Seek Clarification: Ask for clear explanations of what constitutes reimbursable training and the required evidence.
  • Evaluate Fairness: Consider whether the training provides transferable skills that justify a repayment agreement.

Best Practices for Employers

Employers looking to enforce training cost recovery must ensure compliance with UAE labor law:

  • Maintain Clear Documentation: Keep comprehensive records of training costs and agreements.
  • Avoid Retroactive Clauses: Applying repayment terms retroactively can weaken the enforceability of the claim.
  • Ensure Transparency: Communicate repayment conditions clearly to employees to minimize disputes.

Conclusion

This recent case serves as a critical lesson for both employers and employees in the UAE. While employers have the right to recover legitimate training costs, they must ensure that agreements are legally sound, properly documented, and fairly structured. Employees, on the other hand, must be diligent in reviewing contracts and understanding their obligations before committing to any repayment terms.

By fostering transparency and adhering to legal guidelines, both parties can create a balanced and fair employment relationship that benefits all involved.

New UAE Personal Status Law: Alimony to Wife

Under UAE law, alimony or spousal support is one of the major legal obligations of the husband toward his wife, which has been hugely dictated by the Shariah principles and has over time been instituted into UAE law to hold for many years. The newly promulgated UAE Personal Status Law, No. 41 of 2024, effective April 15, 2025, restates and clarifies these obligations largely along the lines laid down by the old 2005 Personal Status Law.

Legal Basis for Alimony

The new Personal Status Law puts Article 49, stating that the husband is obliged to pay alimony to his wife. This law further states the meaning of alimony as provided under Article 95: “A right to who it is deserved, which includes the basic necessities and needs, such as food, clothing, housing, treatment, and education, as is customary.”

Article 99 further explains that the husband shall support his wife even if she is independent, meaning alimony is a legal obligation that emanates from the contract of marriage and is not strictly based on disparity in financial capability between the two spouses.

Revocation of Alimony

While the law provides for the wife’s right to alimony, it enumerates certain cases upon which such a right shall be lost. Article 103 details the instances when the wife loses her right to alimony as follows:

  • If she abstains from her husband or self-prohibits without a lawful excuse.
  • If she refuses to move into or reside in the marital home without a lawful excuse.
  • If she refuses to travel with her husband without a lawful excuse.

Exceptions to the Loss of Alimony

Even though these are the usual cases wherein alimony is lost, there are also some exceptions. For example:

  • The marriage contract can stipulate that the wife can live in any other place separate from her husband, which removes the compulsion of cohabitation.
  • The law may also allow her to refute staying in the matrimonial house and to stay away from performing the conjugal relationship if her husband is abusive and it poses danger to the wife’s life.

Alimony and the Right to Divorce

If the husband fails to pay the alimony, the wife, who can demonstrate a lawful excuse for not living with her husband, can take action against him. According to Article 77, if he fails to pay her for 30 days, she can ask for the divorce.

Conclusion

Although the new Personal Status Law retains most of the previous provisions on alimony, it explains and enforces the legal rights of a wife more clearly. It makes certain that the husband’s financial obligation to his wife remains a priority, with clear conditions under which alimony may be revoked or upheld.

New UAE Personal Status Law: Child Custody

The UAE has introduced significant amendments to its Personal Status Law through Federal Decree Law No. 41 of 2024, which will come into effect on April 15, 2025. These amendments impact various aspects of custody, emphasizing the best interests of the child as the guiding principle for all custody-related decisions. Below, we break down the key changes and their implications under the new law.

1. Custody When the Child and Custodian Are of Different Religions

One of the major updates in the new law concerns custody of Muslim children whose mothers follow a different religion. Previously, the law only allowed the mother to retain custody until the child turned five years old. However, under Article 113.8 of the new law, there is no longer an age limitation. Instead, the Court will assess custody based on the best interests of the child, regardless of the religious background of the custodian. This ensures a case-by-case approach rather than a fixed rule limiting custody due to religious differences.

2. Right to Choose Custody at Age 15

A major shift in the law now grants children the right to choose which parent they wish to live with upon reaching the age of 15. Previously, custody decisions were solely at the discretion of the Court. Now, Article 122 of the law expressly codifies this right, removing judicial discretion in such cases. This amendment also applies retroactively in cases where a final judgment has not yet been issued, granting more autonomy to children in ongoing custody disputes.

3. Custody Ends at Age 18

Under Article 123 of the new law, custody automatically ends when the child turns 18, except in cases where the child is disabled and requires continued custodial care. This is a significant change from the previous law, where custody for mothers ended at 11 years old for boys and 13 years old for girls. With this new provision, the law removes gender-based custody distinctions and ensures that children remain with their custodians until adulthood. Furthermore, once custody ends at 18, the child can choose to live independently.

4. Requirements for Custody

The new law sets out specific requirements for an individual to be eligible for custody. These include:

  • The custodian must be at least 18 years old if a parent or 21 years old if another relative.
  • Full mental capacity is required.
  • The custodian must be able to raise, protect, and care for the child, including overseeing their education.
  • If the mother remarries, she may lose custody unless the Court rules otherwise in the child’s best interest.
  • If the father has custody of a daughter, an adult female must be present in the household to provide care.
  • The custodian must have no criminal record for crimes related to assault on honor.
  • There must be no history of substance abuse.
  • The custodian and child should ideally share the same religion, but the Court has discretion to rule otherwise based on the child’s best interests.

These conditions, outlined in Article 113 of the law, provide a structured framework for determining custody and ensuring the child’s welfare.

5. Losing Custody: Conditions and Implications

Custody may be revoked under Article 115 of the new law if:

  • The custodian moves to a place that compromises the child’s best interest.
  • The custodian engages in immoral behavior that negatively impacts the child.
  • The custodian neglects or becomes unable to perform their custodial duties.
  • Custody is not claimed for more than one year from the date of knowledge.
  • The custodian resides with someone whose custody was previously revoked.
  • Any of the original conditions for custody eligibility are no longer met.

If custody is revoked, the affected party may regain custody if the issue that led to the revocation is resolved, ensuring fairness and adaptability in changing circumstances.

6. Guardianship vs. Custody: Understanding the Difference

The new law maintains a clear distinction between guardianship and custody, which is crucial for parents navigating custody disputes.

  • Guardianship: Typically granted to the father, it involves responsibility for the child’s financial welfare, including housing, education, and healthcare. It also includes supervising, guiding, and teaching the child. Guardianship ends when sons become self-sufficient and when daughters either marry or secure employment.
  • Custody: By default, custody is granted to the mother, focusing on the child’s daily care, upbringing, and protection. The mother also has an automatic right to make educational decisions for the child.

The law ensures that both parents play an active role in the child’s life, with an emphasis on what serves the child’s best interests.

Conclusion: A Progressive and Child-Centered Approach

The UAE’s new Personal Status Law marks a significant evolution in family law by prioritizing the well-being of children over rigid legal structures. With changes allowing children to choose their custodian at 15, extending custody until 18, and removing religious limitations on custodianship, the law reflects a more adaptable and child-centric approach. These reforms align with the broader legal modernization efforts in the UAE, ensuring that custody laws remain relevant and fair in today’s evolving societal landscape.

Arrests and Detention of Debtors in UAE for Non-Payment of Court Ordered Payments

The UAE Civil Procedures Law clearly stipulates terms for detention of defaulting debtors who do not uphold court orders. Article 319.3 outlines the time and conditions under which a debtor may be detained according to his conduct and financial situation. Below is a review of these periods of detention and legal limitations.

Periods of Detention and Extensions

1. One-Month Period (Renewable)

The debtor may be detained for a preliminary period of one (1) month renewable on the following grounds:

  • The debtor hides or smuggles assets with the purpose of intentionally hurting the creditor.
  • The debtor or guarantor was given an installment plan but did not pay without declaring insolvency.

Limitation: Assuming the debtor is not flight-risky and has a fixed residence, the total detention period, including renewals, shall not exceed six (6) months.

2. Renewal of Detention After 90 Days

If a debtor’s detention term has already expired and more than 90 days have passed, detention can be renewed if:

  • The debtor is obstinate in payment though financially capable.

Limitation: The aggregate period of detention shall not be more than thirty-six (36) months, whether or not the debtor owes a sequence of debts to multiple creditors.

3. Extended Detention for Financial Crimes

A debtor may be subjected to an extended detention not more than sixty (60) months if:

  • The debt is due to a wilful financial crime perpetrated by the debtor.

Conclusion

Familiarity with legal limitations and extensions of detention based on Article 319 is just as important to debtors confronted with payment disputes and to creditors seeking enforcement. The law entitles creditors with actions to hold back unpaid debtors but sets obvious limits to the best duration of detention so that the enforcement will not be excessive.

For companies and individuals who are subject to enforcement measures, legal experts can assist in navigating these provisions successfully, keeping UAE law requirements intact while safeguarding economic interests.

New UAE Personal Status Law: Marriage and Role of Guardian

The new UAE Personal Status Law No. 41 of 2024 comes into effect on 15th April 2025, marking the introduction of major changes to the marriage regulations in the country. Specifically, the new law redefines the guardianship role for marriage approval, prioritizing a woman’s self-choice in any marriage process.

Key Amendments in the New Law

Article 24 of the new Personal Status Law entrusts the Court, not a single judge, with the responsibility of approving a marriage request in case of the objection of a woman’s guardian. More importantly, however, a guardian’s objection—a father’s included—has lost its legally binding force. In its place, the Court is under obligation to approve the marriage so long as the woman:

  • Is satisfied that she wishes to marry the man, and
  • Accepts his dowry.

Additionally, any interested party may submit the marriage request, such as:

  • The future groom
  • The woman’s mother, sister, or brother

Furthermore, the Court has the authority to:

  • Transfer guardianship to another individual if the current guardian unjustifiably prevents the marriage.
  • Authorize another person to conclude the marriage contract in the guardian’s place.

How This Differs from the Previous Law

Under the old Personal Status Law, it was more discretionary, and a guardian could prevent a marriage in certain cases. To wit:

  • Article 30.3 allowed any person who had completed the age of 18 years to request permission from the judge to marry if his guardian refused.
  • Article 30.4 required the judge to summon the guardian to present their objection. If the guardian failed to appear or lacked a valid objection, the judge could approve the marriage.
  • Judges had broad discretion to assess the validity of a guardian’s objection, which could lead to delays or subjective rulings.

Implications of the New Law

The new Article 24 in the Personal Status Law removes the cause for objection by a guardian and instead renders the personal will of the woman as the sole criterion for approving marriage. This diminishes the role of the guardian, empowering the Court to facilitate the marriage if necessary. This change marked one of the progressive steps in UAE family law in the following way:

  1. It distanced the need for the guardian’s consent to validate the marriage.
  2. Approvals of marriages are given to the Court not a single judge.
  3. Respecting the autonomy of the woman where the Code only requires her conviction in the marriage, as well as the acceptance of the dowry.
  4. The right of third-party requests, such as the mother or sibling, when there is an undue influence on the part of the guardians who object to it.
  5. Providing mechanisms for guardianship transfer when a guardian unjustifiably prevents a marriage.

Conclusion

These changes represent a significant transformation in the UAE’s marriage laws, firmly establishing the principle of a woman’s choice of spouse. Removing impediments through guardianship objections and making smooth the process by which marriages get approved has been a new development in modernizing the United Arab Emirates’ legal framework while insuring equity and self-determination in personal status matters.

With Law No. 41 of 2024 coming into effect in April 2025, residents and UAE citizens alike will benefit from a more transparent, fair, and efficient marriage process.

New UAE Personal Status Law: Proving Lineage

The UAE Personal Law No. 41 of 2024, effective April 15, 2025, ushers in a sea change in the way lineage may be proved when paternity or maternity is denied. These changes ease the burden of court procedures and bring the law abreast of the times.

Key Changes in Proving Lineage

1. DNA Testing as an Unconditioned Option
Under the New Law, Article 87 provides that proof of lineage through DNA testing is now a standalone and unconditioned method. Whereas, under the Old Law, Article 89 had provided supplementation by way of proof of filiation and having slept with the alleged parent before it would even resort to DNA testing.

  • Old Law: DNA testing was allowed, but only when there was previously an ‘established relationship’ which was fertile.
  • New Law: The party may demand DNA testing outright without the necessity of any ancillary proofs showing a prior relationship.
  • Impact: It eliminates a large hurdle that normally faces those who try to establish either paternity or maternity.

2. Deathbed Declaration of a Child
Article 89.1 allows for the recognition of a child even in the final stages of life, provided certain conditions are met:

  • The declarant is at least of age and in full use of his faculties and not under duress.
  • The child’s filiation is unknown.
  • The person to whom such declaration was made, if of sound mind and of full age, confirms such statement.
  • The interval between the date of birth and that of the declaration is such that the declarant could be the parent.

Besides, the Court can order the DNA test, if needed (Article 89.2). This is a significant improvement from the former Old Law, where DNA tests are not mentioned explicitly in its Article 92.1.

3. Apellido Paternal can now be acknowledged
Under the Old Law, Article 92.2, even when the child’s lineage was established, it did not extend to the child’s grandfather, the father’s father. This has been deleted under the New Law, which would suggest that lineage can now extend to the paternal grandfather.

4. DNA Testing in Extraordinary Circumstances
Under Article 90, there is a new provision enabling the Courts to order DNA testing in exceptional circumstances, including:

  • Cases of mix-ups of newborn babies in hospitals
  • Accidents or disasters
  • Disputes relating to a child’s lineage
  • Application of the relevant authorities

This ensures, in cases where there might have been identity mix-ups or controversies, the authenticity of identity on legal matters.

5. Denial of Paternity is Now More Difficult
Previously, the Old Law allowed for a father to deny paternity within seven days of birth, and after such time, an action needed to be brought in Court within 30 days. The New Law (Article 93.1) limits such period to read:

A father now must file a Court action within 15 days of learning of the birth.
If no filing within the time limit, paternity is automatically established.
The above law is very applicable in situations when the couple is still lawfully married but the spouses are separated and the mother lists the husband as the father on the child’s birth certificate.

6. DNA Testing for Paternity Denial Cases
When the father starts a Court process to deny his paternity under the New Law, Article 94.1 & 94.2 in the following steps:

  • The case will be ordered by the court if the mother agrees to it, on the basis of DNA test results, or if not, the mother refuses the same.
  • Under the Old Law, DNA testing was not a primary method of resolving such disputes. The New Law formally integrates DNA testing, making it a key factor in determining lineage.

What This Means for Families in the UAE
The new provisions significantly modernize lineage-related laws, ensuring that scientific evidence plays a central role in resolving disputes. By:

  • Eliminating outdated proof-of-relationship requirements before DNA testing.
  • Recognizing grandparental lineage in confirmed cases.
  • Legal clarity in cases of hospital mix-ups and extraordinary cases
  • Paternity denial claims take less time.

The new Personal Status Law No. 41 of 2024 shows that the United Arab Emirates continues its approach towards modern, evidence-based laws in regard to judicial procedure, strengthening individual rights while keeping judicial intervention at the core. Beginning in April of 2025, individuals in lineage disputes will encounter a more direct, scientifically based law to handle their case.

New UAE Personal Status Law: Asset Distribution & Division

The new UAE Personal Status Law, No. 41 of 2024, introduces significant changes to the distribution of assets amassed by spouses during their marriage. Effective from April 15, 2025, this law explicitly recognizes contributions of each spouse toward the growth or acquisition of wealth during the marriage, a concept previously absent from the legal framework. It would appear that the form of spousal contribution is not only confined to financial contribution but rather presupposes other forms of contributions. Which could include time, intellectual property, other forms of resources and the like.

Key Provisions of Article 51
Article 51 of the new Personal Status Law provides for different scenarios as regards asset ownership and contributions:

1. Independently Owned Assets:

  • Assets acquired individually by one spouse are held to be separate property and not shared or mutually dependent.

2. Wife’s Assets:

  • Any assets or money accumulated solely by the wife remain entirely her property.

3. Assets Contributed to Jointly:

  • If one of the spouses contributes to an increase in wealth or to the acquisition of property during the marriage, both spouses have a claim against the contributed share. This claim exists not only against the other spouse but also against the inheritors or beneficiaries of the other spouse’s estate.

Implications of Article 51

1. Independent of Divorce Proceedings:

  • Article 51 is situated under the heading “Marriage” and not under “Divorce” or “Alimony,” which provides the right to a spouse to make claims independent of divorce.
  • However, it is envisioned that this article will, in practice, be invoked more often in divorce cases since the issue directly relates to the partition of estates and property.

2. Claims in Probate Proceedings:

  • The law has clearly provided that claims can be filed at the time of inheritance. In such a case, the spouse, or even an ex-spouse, can claim against the contribution made towards others’ wealth or estates.
  • This will amount to unjust enrichment if the inheritors of one spouse takes the contribution of the other spouse unduly. Article 253, Personal Status Law allows for criminal liability against persons concealing, damaging, or fraudulently taking for himself the whole or part of money forming part of an inheritance and provides for sanctions involving imprisonment and/or fine of AED 5,000 to AED 100,000.

Need to Identify Contribution

Historically, UAE law did not provide explicit recognition for contributions by one spouse toward the other’s assets. This means that even if a wife contributes 50% toward, say, some property, at the time of divorce, informal claims would become necessary to show her share of ownership. By introducing this rule, the law now formalizes such claims through clear legal entitlement of spouses with contributions, both financial and not, to protection of such participation.

Legal and Practical Implication

Article 51, along with other provisions, has marked an important milestone in the pursuit of equity in the distribution of both marital and post-marital assets. By giving formal recognition to spousal contributions, whatever their type may be, the law has provided a robust framework for addressing disputes relating to jointly amassed wealth with fairness and accountability in divorce and inheritance cases.

New UAE Personal Status Law: Child Support

The UAE’s new Personal Status Law, Federal Decree Law No. 41 of 2024, effective from April 15, 2025, updates and provides clarifications concerning child support obligations. Two important articles set the rules for financial responsibilities and how support may be claimed: Article 106 and Article 111.

Article 106: Father’s Financial Obligations
Under Article 106, the father’s fundamental responsibility is providing for their children financially. Despite the structure almost being similar as the old law, the new provisions have emphasized that a few salient amendments:

1. Coverage of Support

  • The father must support the children until they can support themselves.
  • Regarding girls, in particular, support terminates upon marriage or entering into an employment contract.
  • For boys, this is until they reach an age where they are able to work, unless they are studying with success.

2. Support for Adult Children with Disabilities

  • Fathers have to continue support for adult children who have disabilities if they cannot generate an income.

3. Ensuring Basic Needs

  • Even when a child is receiving an income, the father has to continue providing financial support if the income received is not adequate to cover the needs of the child.
  • If the mother is not in a position to breastfeed the child, then the father is obliged to pay for breastfeeding.

4. Parent Unable to Support

  • If the father is unable to support the child financially, the mother has to contribute if she is capable of doing so.
  • She could claim from the father, if he is able to pay later, provided the expenses she incurred were certified by him or by the court.

Article 111: Claim for Maintenance

Article 111 regulates how to file claims for child support and provides certain limitations to bring forth clarity and equity:

1. Retroactive Claims

  • The claims of support arrearages are limited to no more than one year before the date the case is filed.

2. Claims for Other Relatives

  • As to other relatives, such as parents or dependents, liability begins on the date of filing.

Key Takeways

The new Personal Status Law prioritizes the welfare of the children while introducing clearer guidelines on the financial responsibilities and claims of each party. By emphasizing that children’s basic needs must always be met and providing mechanisms for reimbursement and ongoing support, the law guarantees a more robust approach toward the rights of children in the UAE.

This revised law emphasizes that in all conditions, the welfare of the child has to be considered, while it also confirms the UAE’s approach to family stability and financial liability.

New UAE Personal Status Law: Divorce and Separation

The UAE has introduced significant changes to its Personal Status Law with the enactment of Personal Status Law No. 41 of 2024 (“New Law”), which comes into effect on April 15, 2025. The New Law replaces the UAE’s previous Personal Status Law No. 28 of 2005 (“Old Law”).

With regards to divorce and separation, the New Law provides greater clarity, equity, and codification of divorce-related provisions, which were either previously undefined or inconsistently applied. This bog focuses, specifically, on Section 4 of the New Law, detailing the various forms of separation, the rights of spouses, and the procedural changes, alongside a comparative analysis of the Old Law.

Forms of Separation Between Spouses

The New Law categorizes the dissolution of marriage into five (5) distinct forms:

  1. Talaq: default right granted to the husband; conditional right to the wife. Similar to the Old Law.
  2. Tatleeq: court-ordered divorce, which is a brand new provision codified in the New Law.
  3. Khul’aa: wife-initiated divorce, without the need to prove harm, however forfeiting of multiple financial rights
  4. Termination of the marriage contract
  5. Death of one spouse

Talaq (Guaranteed right to divorce for the husband)

Under both the Old and New Laws, Talaq is the husband’s guaranteed right to initiate the divorce, and the wife’s conditioned right to divorce via requesting a “Talaq”. Specifically, whereas the Old Law provided clarity on the husband’s right to request Talaq, it did not provide the same clarity for the wife’s right – despite conditioning it. Under the New Law, however, there is further detail and clarity with regards to Talaq.

Overall, the differences between a Talaq under the Old Law and Under the New Law begin at the outset, in the general definition of Talaq, as per the below articles.

  • Old Law (Article 99): Defined divorce as the dissolution of marriage by clear or explicit expressions.
  • New Law (Article 53): Expanded the definition to include demands that imply divorce, provided that the husband’s intent is clear.

Additionally, the New Law mandates that the husband document the divorce within 15 days before the court. Failure to do so may result in financial compensation to the wife, equivalent to a pro-rated alimony amount, for the period between the divorce and its official registration (Article 58).

Delegation of Talaq

The possibility to delegate proceedings for Talaq has been expanded under the New Law.

The Old Law gave the husband an exclusive right to delegate proceedings for “Talaq”; the delegation could be given by the husband to a representative, or the wife.

The New Law, however, explicitly recognizes the wife’s right to delegate “Talaq” proceedings as well. Furthermore, the New Law sets limitations to divorce proceedings initiated by power of attorney (“POA”) holders. The relevant articles from the Old Law and New Law are outlined below.

  • Old Law (Article 100): Allowed the delegation of divorce authority by the husband.
  • New Law (Article 55): Provides the wife with the explicit right to delegate it, but prohibits the husband from revoking the POA after the divorce is executed unless it can be proven that the POA was revoked prior to the divorce and the agent was aware of the revocation.

Tatleeq (Court-Ordered Divorce)

One of the most notable changes is the codification of Tatleeq, granting either spouse the right to petition the court for divorce under specific circumstances:

  • Husband not spending on Wife (Article 77):
    • If the husband fails to provide financial support, the court grants him 30 days to comply. Failure to do so results in divorce.
    • If the husband claims insolvency, he is given 90 days to remedy his financial situation and support/spend on his wife. Continued failure to spend on or support the wife results in divorce.
  • Drug or Alcohol Addiction (Article 80): Either spouse may request a court-ordered divorce if the other is addicted to drugs, alcohol, or mind-altering substances.
  • Sexual Abstinence or Neglect:
    • If the husband swears to not be intimate with his wife for more than four months or is not intimate with her for six months without valid reason, the wife may request a Court-ordered divorce (Article 78).

These provisions mark a departure from the Old Law, where fault-based divorce relied heavily on judicial discretion without specific guidelines.

Previously, there were no legally defined situations or codified standards as to what constitutes a fault on the basis of which a Court may grant divorce. Moreover, spouses had to prove the harm that they suffered as a result of the other spouse’s conduct, which often led to inconsistent rulings.

Khul’a (Wife-Initiated Divorce without Fault)

The New Law enhances the clarity and fairness of Khul’a, a divorce initiated by the wife in exchange for compensation:

  • Old Law (Article 110): Allowed Khul’a through mutual consent, with compensation for the husband generally being the dowry.
  • New Law (Article 65): Permits compensation to include any agreed-upon asset, ensuring greater flexibility for the wife.

The New Law also specifies that Khul’a results in irrevocable divorce, meaning that the husband can only remarry the wife under a new contract and with a new dowry, and prohibits any compensation that would waive the wife’s rights to child expenses or custody (Article 66).

Cases of Invalidity of Divorce

The New Law expands scenarios where divorce is deemed invalid:

  • Old Law (Article 103): Addressed invalidity in limited cases, such as conditional divorces or those tied to oaths without clear intent.
  • New Law (Article 56): Includes additional grounds, such as divorces declared during duress, extreme anger, or temporary mental incapacity, without proof of actual intent to divorce. It also invalidates divorces declared while the wife is in her divorce waiting period, or in an invalid marriage.

Fault-Based Divorce (also Tatleeq) (Article 71)

Both spouses have the right to request a fault-based divorce for ongoing marital problems that result in irreparable harm. If harm is not proven, the court may appoint arbiters to investigate and attempt reconciliation (Article 72). The arbiter’s report guides the court’s decision on compensation or separation (Article 74).

Termination of Marriage Contract

The termination of the marriage contract has been significantly expanded and codified under the New Law to address situations that were previously left to judicial discretion or undefined. Termination may occur under the following circumstances:

  • Illness or Disability (Article 69): If one spouse has a harmful or repulsive illness, such as insanity or impotence, the other spouse may petition the court for termination.
  • Non-Payment of Dowry (Article 76): If the husband fails to pay the agreed-upon dowry within 30 days of the court’s deadline, the wife may seek termination.
  • Dissolution Before Consummation (Article 75): A wife may request termination without proving harm if the marriage has not been consummated, provided she returns the dowry.

Key Distinctions between the New Law and the Old Law

Under the Old Law, generally, reasons and faults resulting in the termination of a marriage contract were not well-defined and were overall left to judicial interpretation and discretion.

The New Law codifies these grounds explicitly, providing clarity and reducing the burden of proof on spouses seeking termination. These changes align with general Islamic principles, emphasizing fairness and the protection of both spouses’ rights within marriage.

Notable improvements and enhancements in the New Law

The amendments to the UAE Personal Status Law represent a notable evolution in the legal framework for divorce and separation:

  1. Clearer Codification: The New Law codifies provisions that were previously reliant on judicial precedent, providing greater consistency and predictability.
  2. Enhanced Protections: The law explicitly recognizes women’s rights in marriage, including financial entitlements and the acknowledgment of sexual and emotional well-being.
  3. Expanded Grounds for Divorce: By broadening the circumstances under which either spouse can petition for divorce or termination, the law ensures a more equitable approach to marital disputes.
  4. Procedural Improvements: Mandatory documentation of divorce and reconciliation reduces ambiguity and protects the rights of both parties.

Conclusion

The New Law’s comprehensive updates to divorce and separation provisions mark a progressive step forward for personal status legislation in the UAE. By addressing ambiguities in the Old Law and expanding the rights of both spouses, the New Law provides a more balanced and transparent legal framework.

These changes not only reflect evolving societal values but also enhance the protection of individual rights within the institution of marriage.

For detailed legal guidance on navigating divorce or other personal status matters under the new UAE laws, our team at LYLaw is here to assist. Contact us for expert advice tailored to your specific situation.

Starting on the Right Foundation: Business Setups in the UAE

The business-friendly environment of the UAE attracts entrepreneurs and companies from every part of the world, with enormous opportunities in almost all sectors. At the same time, setting up a business in the UAE requires careful planning and well-informed decision-making since its regulatory environment is unique. Getting off on the wrong foundation can lead to serious operational and legal issues. Following are some of the most critical factors to consider when setting up a business in the UAE.

Choosing the Right Economic Zone

The selection of the right economic zone is among the first key decisions for any company aiming to set up in the UAE. There are two main options to choose from: the Mainland and Free Zones. Each has different legislation, mechanisms of operation, and benefits. Significantly, there is no “UAE-wide” business license, with companies needing to register in at least one emirate and then expand to other zones by opening branches or forming subsidiaries. Established free zones like the DMCC, JAFZA, and DIFC have modern infrastructure, consolidated online portals, and business-friendly processes that help foreign companies manage their operations remotely. Their mainland counterparts are more accessible for wider market access; however, they come with more regulatory restrictions, including an employee quota and less cohesive management systems.

Understanding the Complexities of Free Zones

Whereas some free zones have reputations for ease of procedure, others are cumbersome because they necessarily rely on third-party agents. These agents are middlemen that may also exercise control over critical aspects of business operations, such as the licensing and communication processes with the free zone authority. In such cases, a lack of direct access to the license may create inefficiency and conflicts of interest. For instance, there are instances where businesses have to suffer delays in trying to move to another free zone because the existing zones try to withhold NOCs in order to keep them behind. Such tactics reduce operational flexibility and create unexpected obstacles.

The Risks of Over-Reliance on Consultants

In most cases, consultants guide foreign businesses through the setup process. However, not conducting thorough due diligence while relying on consultants leads to suboptimal decisions. This includes consultants who have vested interests in certain zones they push businesses toward and those using some general templates, even for documents so significant, such as Memorandums and Articles of Association and employment contracts. Such pre-patterned solutions hardly aim at the singular needs of their business and place a business at significant risk from an operational efficiency viewpoint or legal fallout.

Negligence of Specific Legal Requirements of the UAE

The other frequent mistake is a failure to adapt business practices and agreements to the legal and regulatory environment in the UAE. Many businesses try to use documents drafted in their home countries, thinking that they should be adequate. However, such agreements are mostly unenforceable in the UAE and also fail to meet the local compliance requirements.

For instance, the UAE has employment laws that require contracts to meet their unique legal requirements, whatever the country of origin of the parent company is. Non-compliance with required contract structures can lead to legal and business disputes that can significantly damage a company’s operations.

Setting Up the Right Foundation

Businesses can avoid many of these common problems through the following ways:

  • Research: Understand the variation in economic zones to choose one that is suitable for the growth of your business model.
  • Direct Interface: Wherever possible, interface directly with free zone authorities and not necessarily only through third-party agents.
  • Specialized Documentation: All contracts and agreements should be prepared or vetted by UAE law-savvy lawyers.
  • Professional Expertise: Engage reputable advisors for legal, financial, and operational matters to achieve a compliant and efficient setup.

Conclusion

The structure in which the business has been set up will ensure that the business is stable and profitable in the long run. This involves the selection of the right economic zone, doing due diligence on working with consultants, and careful alignment with local regulations in the UAE. Any shortcuts to hasten the setup process will actually save some time initially but create considerable challenges later on. With a focus on informed decision-making and tailored solutions, businesses can position themselves for sustainable growth and success within the UAE’s competitive landscape.