Host
Drive Live is the Legal Hour. Ludmila Yamalova is with us in the room. Ludmila, it’s nice to see you as it always is. Thanks for coming in.
Ludmila Yamalova
Wonderful to be here. Thank you for having me.
Host
Legal Hour on Drive Live. Let’s jump straight in, actually. This is not just property—we’re going to be talking property. If you have a property question, text in. If you have a legal question of another nature, then text in. And I wanted to jump straight into the VAT conversation. I know there’s nothing in particular to update. We don’t know anything particularly new from last week. You expect details post-Ramadan?
Ludmila Yamalova
Yes, indeed. The Ministry of Finance has announced that more details, in particular perhaps even draft laws on VAT and implementing regulations, will become available after the end of Ramadan. So perhaps one of the reasons we’re not hearing any new statements is because of that.
Now, as I say that, there is actually another briefing scheduled by the Ministry of Finance, tailored for SMEs, which I will be attending. Perhaps there will be some new details of relevance, which I’ll make sure to update our listeners on. But until then, the real details and next level of clarity should come after Ramadan.
Host
Okay, so updated details on VAT. We should point out that we haven’t seen the law or a draft law yet. This is you attending briefings at the Ministry of Finance?
Ludmila Yamalova
Indeed. But I’ll also tell you, right now, it seems to be the season for events. I think this is perhaps before Ramadan and before people scurry away for the summer. There are a lot of business events being held by various business councils, and almost every one of these events has hosted one or more sessions and briefings on VAT.
The message on the street is the same and consistent—it permeates the business community. So I think it’s safe to continue to state that while we don’t know the details of the law, the law is coming. The timeline of this law is fairly imminent, and that is January 2018. All businesses are being advised from various angles to continue preparing for its introduction.
Host
Once again, that’s the point, isn’t it? To get people in the mode of preparing for VAT. And more details are starting to come out.
Ludmila Yamalova
Correct.
Host
Okay, let’s go straight to the phone lines. If you have a question for Ludmila today, let’s first talk to Matthew. Matthew is online. Let’s see—line four. Matthew, you’ve got a question for Ludmila. It’s about rent. Don’t know any more details. Put your question to her, if you would.
Caller: Matthew
Hi Ludmila, how are you?
Ludmila Yamalova
Hello, Matthew.
Caller: Matthew
We’ve been renting our apartment from one of the big developers in Dubai for the last 14 years. It’s actually rented through my wife’s company. We pay my wife’s company the rent, and they settle it with this big developer. So we’ve been there 14 years. Unfortunately, her company is going to close in July, and our tenancy finishes in August.
This developer is now saying that if we want to take it on, we will be considered new tenants after 14 years and have to pay essentially a new rate. I’ve already spoken to them, and they said I need to take it up with the landlord. So they’ll basically put the rent up as if we were new tenants. I wonder where we stand.
Ludmila Yamalova
Matthew, you’ve received the correct advice, unfortunately for you. This would be considered a new contract because the party to the contract would be new. Even though, technically speaking, you’ve always been the party physically living in the property, contractually and legally, it’s always been your wife’s company. Therefore, contractually and legally, they are the party to the contract, and you’ve just had the benefit of that contract.
If the company closes and you step into the shoes of the company, it is correct that you would become the new party to the contract. At that point, the landlord can introduce whatever new terms and rent they choose. There’s no limitation on renewing the contract because the party to that contract is ultimately rescinding it. It would essentially be a novation of the contract. So, unfortunately, that is correct.
The only other option is if you can somehow negotiate with your wife’s company to continue the contract in their name. I’m not sure if that’s practical, or if there’s a way to buy out the company. I don’t know if it’s a functional company or just a shell company, but there could be arrangements to maintain the contract.
Caller: Matthew
Would the landlord require the trade license every year for the contract to remain active?
Ludmila Yamalova
It depends on your landlord. If the landlord asks for it, then yes, but not all landlords do. In your case, though, it sounds like they would, especially since you’ve now brought it to their attention.
Host
Matthew, is there an option for you to speak to the landlord or the landlord’s representative directly?
Caller: Matthew
I’ve been speaking to them over the last couple of days and working my way up the chain. I spoke to the leasing director today. He was very nice but said the same thing. It’s one of the top two developers here, so I think their rules are set in stone.
Ludmila Yamalova
I’d suggest looking at the RERA index to see if the market value matches what they’re asking. If it’s somewhere in between, you could use that as a negotiating tactic.
Caller: Matthew
I looked at the RERA calculator, and it says the rent can only go up by about AED 3,000. But when I spoke to RERA, they said it’s up to the landlord.
Ludmila Yamalova
Unfortunately, that is correct.
Host
Matthew, all the best. Hopefully, something can be worked out in the meantime. Thanks for calling.
Caller: Matthew
Thank you.
Host
That’s a tough situation. Ludmila, as you’ve mentioned before, sometimes negotiating with the actual decision-maker can yield better results than going through standard processes.
Ludmila Yamalova
Indeed. Often, departments handling such issues are not decision-makers, but if you can reach someone higher up, you may find them more reasonable.
Host
Questions for Ludmila today? Not just property—text us on 4001 or through the free app. Stay tuned to Drive Live on Dubai Eye 103.8!
Host
We’re back with Legal Hour on Drive Live. If you’ve just joined us, Ludmila Yamalova is with us, answering your legal questions. Lots of questions coming in—text us on 4001 or via the free app. Ludmila, let’s move to another topic that’s been making headlines.
The UAE General Prosecution has issued a statement calling on youngsters to uphold traditional values and warning them about social media misuse. This comes after a video went viral and sparked complaints. What are the legal implications for such incidents?
Ludmila Yamalova
This is an important reminder about the UAE’s strict cyber laws and cultural sensitivities. Any content shared on social media must align with the country’s traditional values, morals, and privacy standards. This extends to videos, photos, and statements.
The issue with social media is that once something is posted, it’s out there permanently. Even if you delete it, someone could have taken a screenshot or saved the content. The UAE Cybercrime Law, initially introduced in 2006 and amended multiple times, imposes strict penalties for violations. These can include fines ranging from AED 250,000 to over AED 1 million and, in severe cases, imprisonment.
Host
In this case, the video involved individuals dancing in traditional attire. What about situations like these where cultural elements are involved?
Ludmila Yamalova
The concern here is cultural appropriation or misrepresentation. When traditional elements, such as attire, are involved in a way perceived to contradict cultural values, it can be seen as offensive. In such cases, the content may be deemed illegal, even if it wasn’t intended to cause harm.
The broader takeaway is to exercise caution with social media. If there’s any chance something could be perceived as defamatory, offensive, or culturally inappropriate, it’s better not to post it.
Host
That’s solid advice. We had a related question come in from Nadia earlier. She runs a community Facebook group. She’s asking if she, as the admin, could be held responsible if a group member posts something defamatory or inappropriate.
Ludmila Yamalova
That’s a great question and one that many admins of online communities should consider. As the admin of a group, Nadia could potentially be held responsible for the content shared by group members. This is because she provides the platform for such communication and could be seen as facilitating the dissemination of harmful or defamatory material.
It’s crucial for admins to set clear rules for their groups and monitor posts regularly. If any content is flagged or deemed inappropriate, it should be removed immediately. It’s also wise to include a disclaimer stating that group members are individually responsible for their posts.
Host
Speaking of online accountability, we’ve had another question. A listener asked if someone can be prosecuted for defamatory comments on private platforms like WhatsApp or internal email threads.
Ludmila Yamalova
Absolutely. Even private communications like WhatsApp or internal emails can lead to legal issues if the content is defamatory or offensive. The UAE’s laws on slander and defamation apply to all forms of communication, whether public or private.
People often think private messages are safe, but the reality is they can be forwarded or leaked. This means the defamatory content could reach a wider audience, leading to potential legal consequences.
Host
Another listener, Edward, asked about hacked accounts. If someone’s social media account is hacked and illegal content is posted, who is responsible?
Ludmila Yamalova
If an account is hacked, the owner is generally not held responsible, provided they can prove the hack occurred. However, until that proof is presented, the default assumption might be that the account owner is responsible.
If you suspect your account has been hacked, report it to the platform and the UAE Cybercrime Department immediately. Gather evidence, like emails from the platform confirming suspicious activity, to support your case.
Host
That’s reassuring. Let’s switch gears and address some of the labor law questions we’ve received. One listener asked what happens if an employer terminates a limited contract without cause. What are the end-of-service benefits?
Ludmila Yamalova
In the case of a limited contract, if an employer terminates it without cause, the employee is entitled to several benefits:
- Notice Period Pay: The employer must either allow the employee to serve the notice period or pay it out. The minimum notice period is one month unless the contract specifies longer.
- Gratuity: End-of-service benefits are calculated based on the employee’s basic salary—21 days of salary for each of the first five years and 30 days for every subsequent year.
- Unused Leave: The employee must be compensated for any unused vacation days.
- Arbitrary Dismissal Compensation: If there’s no valid reason for termination, the employee is entitled to up to three months of full salary as compensation. This includes allowances.
The exact amount will depend on the remaining term of the limited contract. For example, if there are only two months left, the compensation would be for those two months.
Host
Another labor law question came in from Michael, who’s working in a free zone. He mentioned being on probation for six months but hasn’t been issued a visa or medical insurance during that time. Is this legal?
Ludmila Yamalova
No, it is not. By law, every non-UAE national must have a valid residence visa to work legally in the country. Employers are also required to provide health insurance as part of the employment contract.
What Michael described—working without a visa or medical insurance—places both him and his employer in violation of labor laws. The company faces hefty fines, and Michael risks deportation. My advice to Michael is to raise this issue with the employer immediately and insist on proper documentation.
Host
We’re running out of time, but we’ve had one last question come in from Alex, who is renting a villa. He’s signed the contract, paid a deposit, and handed over post-dated cheques, but now the landlord wants to increase the rent. Can the landlord do this?
Ludmila Yamalova
No, the landlord cannot unilaterally change the terms of the contract after it’s been signed. This is considered a breach of contract. Alex has every right to refuse the rent increase.
If the landlord insists, Alex can file a complaint with the Rent Dispute Settlement Committee. While this process will likely resolve the issue in Alex’s favor, it may take time and could delay his ability to move in.
To avoid such situations, always ensure that payments and deposits are made only after receiving the keys and access to the property.
Host
Ludmila, thank you for your time and insights today. As always, it’s been incredibly helpful.
Ludmila Yamalova
Thank you for having me. It’s always a pleasure.
Host
That wraps up Legal Hour on Drive Live. Stay tuned for more on Dubai Eye 103.8!
