Host
There’s just so much more to hear. Download our podcast at DubaiI1038.com. NLT and Tim with you on DubaiI103.8, and we’re going to be looking at some of the issues affecting you legally. Our topics today include enforcing domestic worker protection laws and identifying rogue financial advisors, as well as the position you might find yourself in. Welcome to Drive Live Talks Legal.
Our guest today, as ever, is Ludmila Yamalova from Yamalova & Plewka. It’s very nice to have you back in the studio.
Ludmila Yamalova
Good to be here, and good to see you.
Host
We’ve been out and about, haven’t we?
Ludmila Yamalova
Yes, and you two have been out even more than the rest of us. We’ll say no more about that. But yes, we were at the tennis, weren’t we? It’s great to be back in the studio now.
Host
It’s always a pleasure to have you here, Ludmila. We’ve already had quite a few text messages for you, which shows how popular this part of the program is. If you do have a legal question, text us on 4001, use the free messaging app, or call us on 423-1010.
Let’s dive into our first topic: the new prosecution efforts to enforce domestic worker protection laws. We know the laws exist, but this seems to be about enforcement.
Ludmila Yamalova
Indeed. While we don’t have extensive details yet since the law and its enforcement are both relatively new, the key point is the creation of a dedicated public prosecutor specializing in claims brought by domestic workers.
This development complements the domestic worker law, which introduced provisions for domestic workers to raise grievances and created a streamlined process for documenting concerns. Before this law, there wasn’t a legal framework specifically for domestic workers, as the UAE labor laws expressly excluded them.
Previously, workers relied solely on their employment contracts, which were standard and often lacked detail. The new law provides rights and benefits similar to those outlined in the employment law. It also establishes a centralized authority for registering domestic workers and allows for inspections of accommodations and working conditions.
The introduction of prosecutors dedicated to these cases underscores the UAE’s commitment to enforcing these protections.
Host
Our first text relates to domestic workers. It says: “Ludmila, can you remind us of the gratuity law for domestic workers? How much is gratuity, and when is it due?”
Ludmila Yamalova
Gratuity for domestic workers is 14 days’ salary per year of service. Contracts for domestic workers are capped at two years, and gratuity must be paid at the end of each contract.
If the contract is renewed, gratuity from the previous contract cannot be carried over. It must be settled before the renewal. For domestic workers, there’s no distinction between basic and total salary—it’s simply 14 days of the total salary specified in their contract.
Host
Is it true that domestic worker visas are currently issued for only one year, while contracts can last up to two years?
Ludmila Yamalova
Yes, that’s correct. For expats sponsoring domestic workers, the visa is limited to one year, though the contract can extend up to two years. There’s some inconsistency, but as the law evolves, we may see the visa duration align with the contract length.
Host
How does the employer prove they’ve paid gratuity or other entitlements?
Ludmila Yamalova
The burden of proof lies with the employer. Typically, this is done through bank transfers, checks, or other documented payments. While there’s no WPS (Wage Protection System) for domestic workers yet, implementing one would be beneficial.
Host
Here’s another text, Ludmila. This one says: “I own a property in Dubai and want to rent it out after I leave the country. My concern is that my bank account might be closed when my work visa is canceled. What can I do?”
Ludmila Yamalova
Previously, banks often closed accounts after visa cancellations. However, in recent years, this practice has become less common. If you have no outstanding debts, such as loans or credit cards, your bank account is likely to remain open.
Alternatively, you can issue a power of attorney to a trusted individual, authorizing them to manage the property and accept rental payments on your behalf. Another option is to arrange for tenants to transfer rent directly to your international bank account, though this relies heavily on trust.
Host
That’s helpful. We’re going to shift topics now to financial advisors. How can listeners ensure they’re going to someone trustworthy?
Ludmila Yamalova
When choosing a financial advisor, check their licensing and accreditation. Verify their track record and ask for references. Be cautious of advisors promising guaranteed returns or pressuring you to make quick decisions. Always ensure any agreement is documented in writing.
Host
We’ve also received a question about going into business with family. It says: “A friend started a salon with her daughter-in-law in Dubai. She’s financially invested but hasn’t seen any returns and is now worried about liability for bounced checks issued under the business name. What are her options?”
Ludmila Yamalova
This is a complex situation. First, she needs to clarify her role—whether she’s a shareholder, manager, or guarantor. To unwind her involvement:
- Negotiate with the other shareholder to transfer ownership of her shares, ideally with compensation.
- If negotiations fail, seek court intervention to dissolve the company. This process involves appointing a liquidator to manage the company’s assets and liabilities.
- Address outstanding liabilities, as she remains responsible for checks issued while she’s on the trade license.
This situation highlights the risks of informal agreements in business.
Host
That’s thorough advice. We have time for one final question. This one says: “My employer is renewing my visa but is asking me to sign a document stating I must repay all visa costs if I leave within two years. Is this legal?”
Ludmila Yamalova
No, it’s not legal. UAE labor law explicitly prohibits employers from passing visa costs onto employees. Any such agreement is unenforceable. If you’re concerned about jeopardizing your relationship with the company, you can sign the document but rest assured that it holds no legal weight.
Host
Thank you, Ludmila. That’s all we have time for today. Ludmila Yamalova from Yamalova & Plewka, it’s always a pleasure having you with us.
Ludmila Yamalova
Thank you. Always a pleasure to be here.
Host
Don’t forget, there’s so much more to hear. Download our podcast at Dubai1038.com.