Host
Another story I wanted to mention, and we have an expert here, and I was saying earlier on we need to ask Ludmila this, so welcome Ludmila.
Ludmila Yamalova
Great to be here. Nice to see you.
Host
So as soon as you come in, we dismiss all the pleasantries and get straight to the meat and potatoes of the story. But you know how it is. It’s nice to have you back. We heard from you yesterday talking about this, but we’ve had a statement from the TRA.
This is all to do with being bombarded by messages. If they’re hitting you all the time and you feel like they’re bothering you, you can do something. The point of the release from the TRA is that you can block people. But just to reiterate, under the law, you can do something, can’t you?
Ludmila Yamalova
Well, correct. Under the law, any kind of unsolicited communications that rise to the level of being a nuisance or annoyance are actually illegal and punishable.
Now, that’s the legal perspective—there is recourse against it. In practical terms, though, what one can do about it is something else. It requires effort. You would need to report the offending phone numbers, WhatsApp numbers, or messages to the authorities, which often means physically going to the authorities to make this report. From a practical standpoint, it’s more difficult to enforce.
However, I wouldn’t be surprised if the authorities set up an online bureau or department to simplify reporting, much like what Dubai Health Insurance or the tourism authorities have done. They’ve made it easy for people to file complaints online, and those services have been effective. So yes, legally, there’s recourse, but in practice, it’s currently more challenging to address.
Host
What constitutes a nuisance that is worth going to court over? What would you have to prove? How many messages would there have to be?
Ludmila Yamalova
The law does not specify that, so it would depend on the circumstances and would ultimately be up to the judge. Any unsolicited communication could constitute a nuisance. Even a single message, depending on its content, could qualify.
Host
What about the time of day? If you’re receiving messages on a daily basis at odd hours, would that help build a case?
Ludmila Yamalova
Indeed. But an interesting twist to your example is that, for instance, in the past two hours, I’ve received about 10 or 15 unsolicited messages from unrecognized numbers offering various products or services. However, each of those messages comes from a different number.
Arguably, the sender might claim that a single message from one number is not a nuisance. But if you’re receiving numerous messages from multiple numbers within a short period, that’s a different issue. How those activities are tracked and reported will depend on how the authorities decide to handle them. Right now, it’s challenging because the messages come from all sorts of numbers, including foreign ones.
Host
It’s clearly something the authorities are beginning to address as it becomes a growing problem. You’re probably right that they’ll soon provide a better way for us to remove ourselves from these lists, especially since many of them don’t have an unsubscribe option. If there is an unsubscribe option, does that protect the company to some extent?
Ludmila Yamalova
To some degree, yes. For example, with WhatsApp, most of us are familiar with the option to block unrecognized numbers. That’s one way to stop unwanted communications. However, if you’re receiving 15 such messages daily, blocking one number at a time is not a comprehensive solution.
Host
So what’s the current official process, according to the TRA?
Ludmila Yamalova
According to the TRA, you can block numbers by messaging “B” followed by the number or the company’s short name to 7726. Under federal law, it is illegal to use telecoms equipment or services to send unsolicited services.
Host
Let’s move on to VAT. Ludmila, you’ve been attending Ministry of Finance seminars on VAT, which will be introduced on January 1 next year. There’s nothing particularly new to report since the law is still in draft form, but what do we know so far?
Ludmila Yamalova
Indeed, the law is still in draft form. However, there has been enough coverage in the press and from the Ministry of Finance to give us a general idea of what to expect.
The Ministry of Finance has a dedicated VAT section on its website, which has been publishing information as it becomes available. Recently, on July 9, they updated the website with a Q&A section, which includes about seven pages of detailed information.
For businesses, this is a good starting point. It covers how businesses should start amending their accounting and invoicing practices to ensure compliance. This is especially important because mandatory registration begins in October, leaving very little time for businesses to prepare.
Host
Is the information comprehensive enough for small businesses to figure out what they need to do?
Ludmila Yamalova
More or less. It’s a useful resource, especially for understanding how to start making changes to your accounting or invoicing systems. For instance, all invoices must follow a specific format, and that level of detail is available on the website.
There are also updates on certain topics, like SMEs. The Ministry confirmed that SMEs will not receive special treatment and will be subject to the same VAT rate as other businesses.
Another clarification relates to customs duties. VAT will be charged on the amount that includes customs duties, so you cannot deduct VAT from customs duties.
Host
That’s helpful. If you’re a business owner and want to learn more about VAT, the Ministry of Finance website is the place to go.
Ludmila Yamalova
Absolutely. It’s also worth noting that businesses should use the remaining time to not only register but also implement policies and systems to ensure compliance.
Host
Thank you, Ludmila. We’ll revisit VAT as more details become available. If you have legal questions for Ludmila, keep them coming.
Host
We’ve received a question about employment law. Someone asks, “My friend was dismissed unfairly. He had a one-month notice period but was given three months in redundancy pay. Can he claim more?”
Ludmila Yamalova
Based on the information, it sounds like your friend has received the maximum compensation allowed under UAE labor law. Under the law, when an employee is terminated without cause, they are entitled to three months’ full salary as compensation for arbitrary dismissal.
In addition to the notice period and arbitrary dismissal compensation, the company should also provide the end-of-service benefits based on the duration of employment and the employee’s basic salary. If your friend received all of these, plus a ticket home and any unpaid vacation pay, then they’ve likely been compensated in full.
Host
We’ll continue with more questions shortly. If you’d like to ask Ludmila something, send us your questions now.
Host
Here’s another employment law question: “I’m on a three-month notice period. If I want to leave earlier, can I do so? I wouldn’t expect to be paid for the full three months if that’s the case.”
Ludmila Yamalova
It depends on how the notice period is written in your employment contract. If the notice period is mutual, meaning both the employer and employee are bound to the same terms, then you would need to serve the full three months or compensate the company for the notice period you don’t complete.
If your contract specifically states that only the company must give a three-month notice but does not require the same of the employee, you could leave earlier without being in breach.
However, regardless of the notice period, employees can always resign at any time. Similarly, companies can terminate employees at any time. It simply becomes a matter of compensation. If an employee leaves without completing the notice period, they may forfeit part of their end-of-service benefits or owe compensation to the company.
Host
Here’s a question about unpaid leave: “I’ve accumulated 17 days of unused vacation from last year, but my company only allows me to carry over five days. If I resign, am I entitled to all 17 days or just the five days?”
Ludmila Yamalova
You are entitled to the full 17 days. Under UAE labor law, unused leave does not expire, and you have the right to claim compensation for all your accrued leave if you resign.
The only limitation here is the one-year statute of limitations, meaning you must claim any unpaid leave within one year of it being due. Since your claim relates to last year’s leave, you are still within that timeframe.
Host
We’ve got an interesting question here: “Can a manager fire an employee for having a bad attitude?”
Ludmila Yamalova
A company can terminate an employee for any reason, including attitude issues, but it must follow proper legal procedures to avoid liability. If the termination is based solely on a subjective reason like attitude, it may qualify as arbitrary dismissal.
Arbitrary dismissal entitles the employee to compensation of up to three months’ full salary, in addition to any notice period and end-of-service benefits.
To legally terminate an employee for misconduct, companies must document the behavior, issue formal warnings, and give the employee time to improve. Most companies fail to meet these requirements, leading to successful claims of arbitrary dismissal.
Host
Switching gears, we have a tenancy question: “My tenancy contract is valid until August 8. I want to stay in the apartment, but my landlord has passed away, and the heirs haven’t transferred the property to their names. Can I renew my contract?”
Ludmila Yamalova
Yes, you can remain in the property, and the responsibility to address the ownership transfer lies with the heirs. As a tenant, you’re not obligated to take any action until someone presents documentation proving they are the rightful landlord.
In the meantime, you could reach out to the heirs, if you know who they are, to establish a temporary arrangement. Alternatively, you can deposit your rent with the rent committee in the landlord’s name to ensure you’re not in breach of your lease.
Host
This one is about wills: “I’ve had conflicting advice on whether my will can bypass Sharia law. One legal firm said a will registered with Dubai Courts will be honored, and another said I need to register it with DIFC. What’s the truth?”
Ludmila Yamalova
The advice depends on the assets in your will.
A will registered with Dubai Courts will be honored for most assets, but real estate is an exception. Under UAE law, real estate assets must be distributed in accordance with Sharia unless the will is registered with the DIFC Wills Service.
The DIFC Wills Service was specifically created for non-Muslims who want certainty in how their assets—including real estate—are distributed. This is because Sharia law applies by default to real estate, and challenging this in court can be a lengthy and uncertain process.
If your will only includes movable assets, such as bank accounts or investments, Dubai Courts may suffice. For real estate, DIFC registration is the better option for non-Muslims.
Host
We’re running out of time, but here’s one final question: “I’m part of an LLC with three partners. All of us are over 70. What happens to the company if one of us passes away?”
Ludmila Yamalova
In an LLC, the shares of a deceased partner automatically become part of their estate. The heirs must go through the court process to claim and transfer those shares.
Until the heirs complete the process, the company may face administrative delays, especially if the deceased partner was a signatory or held management authority.
To mitigate these risks, you can establish agreements outlining what happens in the event of a partner’s death. For example, the surviving partners could agree to buy out the deceased’s shares. While a power of attorney may seem like a solution, it becomes invalid upon death.
It’s always a good idea to consult legal experts to draft contingency plans tailored to your company’s structure and needs.
Host
That wraps up today’s Legal Hour. Thank you, Ludmila, for answering all our questions.
Ludmila Yamalova
Always a pleasure.
Host
If we didn’t get to your question today, don’t worry—Ludmila will be back next week. Keep your questions coming, and we’ll address them then. Thank you for tuning in!
