Хозяин
There’s just so much more to hear. Download our podcast at DubaiEye1038.com. Drive Live Talks Legal. We’re talking legal today, and a very warm welcome. Great to have you back, Ludmila.
Людмила Ямалова
Great to be back.
Хозяин
Did you have a lovely trip?
Людмила Ямалова
I did, but I’m still in shock and awe of this new, beautiful studio. I forgot all about my trip.
Хозяин
It’s pretty fancy. We’re all blasé about it now—it’s just normal. Look at me. I’m lounging!
Людмила Ямалова
I can tell. I feel a little bit like a child in a candy store.
Хозяин
It’s very different but nice to have you here and welcome you to the new studios. You’re here to answer people’s questions. We’ve already received a couple of questions, which we’ll get to shortly. If you’d like to ask Ludmila a question, the number is 4001, or you can reach us via the free messaging app.
We also have a new call-in number: 04 871 5500. We’ll keep repeating that it’s new until it sticks.
Let’s start with a story, Ludmila. This one is about the Dubai Notary offering a new service. We hear about new services a lot, but this one seems particularly exciting because it could make certain processes much easier.
Людмила Ямалова
Indeed. What’s interesting about this story is that often we hear announcements of new initiatives before they’re implemented. In this case, it’s different. We didn’t hear any news about it in advance; we discovered the initiative was already in effect when browsing through the Dubai Notary and Dubai Courts’ updates.
There was a brochure at the Dubai Notary outlining this new system, and it’s already in place. The notaries are well-versed in applying it, and we’ve discussed it with them. It’s ready and waiting for customers.
Хозяин
So what’s this new service?
Людмила Ямалова
This is about the notary attesting a new type of document, which essentially acknowledges a debt between two parties. Let’s use a simple example. Let’s say Tim and I agree that I’ll loan him AED 100,000.
Хозяин
More likely, it’s the other way around.
Людмила Ямалова
Fair point. Let’s say Tim wants to borrow AED 100,000 from me. In the past, how would we secure that transaction? Traditionally, post-dated checks were used. But with recent changes to the rules around bounced checks, this guarantee is no longer as strong.
For example, if a check bounces, there’s no longer an automatic jail sentence unless the amount exceeds AED 200,000. Below that, it’s just a fine. This reduces the leverage post-dated checks used to provide.
Another way to secure the transaction would be to draft a contract detailing the loan and repayment terms. However, if Tim doesn’t pay, I would need to go to court to enforce the contract. This could take years, especially if Tim disputes the terms.
Хозяин
And how does this new system streamline the process?
Людмила Ямалова
With the new notary service, Tim and I can go to the Dubai Notary, which has a standardized template for acknowledging debt. We provide the details—such as the loan amount and repayment date—and both of us must be present in person.
The notary notarizes the document, and it becomes an official acknowledgment of debt. If Tim fails to repay me, I can return to the notary, who will add an execution stamp to the document. This stamp acts as a court judgment, allowing me to file for enforcement directly.
Хозяин
So, no lengthy court battles?
Людмила Ямалова
Exactly. Once I file for enforcement, the court can freeze Tim’s assets, seize funds from his bank accounts, or take other measures to recover the debt. There’s no need to prove the debt’s validity again because the notarized document serves as conclusive evidence.
This process reduces what would typically take a year or two to just a few days.
Хозяин
That’s a huge time saver. And this applies to personal debts only, or could businesses use this service too?
Людмила Ямалова
It’s not limited to personal debts. Small businesses, in particular, could benefit significantly. For instance, if a business has unpaid invoices for AED 10,000, AED 30,000, or AED 50,000, they could use this service instead of filing separate court cases for each invoice.
Хозяин
One concern—what if someone falsely claims they haven’t been paid?
Людмила Ямалова
That’s a valid question. If I claim Tim hasn’t repaid me, he would have an opportunity to challenge this during the enforcement stage. He could present proof of partial or full payment, and the court would consider his evidence.
The system isn’t perfect, but it significantly simplifies the process for genuine claims.
Хозяин
That’s a great development for resolving disputes quickly. We’ve received a question about a similar scenario from a listener named Aiden. He says:
“I have a court case against an old company. The court ruled in my favor, and I’ve just opened an execution case. However, the company has closed, although the owners are still in Dubai. How can I recover my money if the execution is against the now-defunct company?”
Людмила Ямалова
This is tricky, Aiden. If the judgment is against the company and not the individuals, the court can only pursue the company’s assets.
First, you’ll need to identify any remaining assets. You can ask the court to investigate the company’s bank accounts, real estate, vehicles, or other holdings. If no assets remain, you may need to shift focus to the company’s manager or shareholders.
If the company is a limited liability company (LLC), the owners’ liability is usually restricted to the share capital. However, if you can prove fraud or other criminal behavior, you may be able to pierce the corporate veil and hold the individuals personally responsible.
Хозяин
That sounds like a complicated process.
Людмила Ямалова
It is. Exhaust all avenues with the company first—check for assets, review the liquidation process, and consult with the court. If nothing remains, you may need to accept the loss unless you have strong evidence to pursue the individuals.
Хозяин
Thanks for that, Ludmila. We’ll take more of your questions after the break. Stay tuned to Drive Live Talks Legal.
Хозяин
You’re listening to Drive Live Talks Legal. Ludmila Yamalova from Yamalova & Plewka is with us in the studio, answering your legal questions. If you want to get in touch, you can text us at 4001 or use the free messaging app. You can also call us at 04 871 5500. Ludmila, we’ve had a question about employment law, specifically about labor bans and non-compete clauses. Here’s the query:
“I recently resigned from my job, and my contract has a non-compete clause for one year. My concern is that I’ve received an offer from a competitor for a role in a slightly different position than my current one. Can my old employer enforce the non-compete clause against me?”
Людмила Ямалова
This is a common concern for employees in the UAE. First, it’s important to understand that non-compete clauses in the UAE are enforceable but only under specific conditions. For a non-compete clause to hold up in court, it must be reasonable in scope, duration, and geographic area.
For example, a clause that prevents you from working in the same industry anywhere in the UAE for an extended period, like a year or more, is likely to be deemed too broad and unenforceable. Similarly, if the role at the competitor company is different from your previous job, your old employer would struggle to prove that the non-compete applies.
Хозяин
So, in this scenario, the person might not have much to worry about?
Людмила Ямалова
That’s correct. Unless the non-compete clause is very specific and the old employer can prove that the new role poses a direct threat to their business interests, enforcing it would be challenging.
Additionally, the UAE courts generally favor the employee in such cases, especially if the clause would unfairly restrict the individual’s ability to earn a living. My advice is to carefully review the non-compete clause with a lawyer if possible, but based on the details provided, the clause seems overly broad and difficult to enforce.
Хозяин
That’s reassuring. And what about labor bans? Are those still common in the UAE?
Людмила Ямалова
Labor bans are less common now, especially with the changes introduced in recent labor laws. Employers can no longer impose arbitrary labor bans. However, bans may still apply in certain circumstances, such as if the employee resigns before completing the agreed-upon contract period or violates labor laws.
In most cases, these bans can be lifted if the employee finds a new job and the new employer sponsors their visa. It’s always worth consulting with a legal expert if you’re unsure about your specific situation.
Хозяин
Great advice, as always, Ludmila. Let’s move on to another question. This one’s about tenancy law, and it’s from an anonymous listener:
“I moved into a new apartment six months ago, and the landlord has refused to address several major maintenance issues, including the air conditioning. Our lease states that the property must be maintained in good condition, but the landlord is ignoring my complaints. Can I withhold rent until these issues are resolved?”
Людмила Ямалова
This is a frustrating but unfortunately common situation for tenants. In the UAE, the landlord is generally responsible for major maintenance issues, while the tenant handles minor repairs. The specifics should be outlined in your lease agreement.
Withholding rent is not advisable. The law does not allow tenants to stop paying rent unilaterally, even if the landlord is in breach of their obligations. Instead, you should file a complaint with the Rental Dispute Center (RDC).
Хозяин
What happens after filing a complaint?
Людмила Ямалова
Once you file a complaint, the RDC will summon the landlord to resolve the dispute. The court may issue an order compelling the landlord to carry out the necessary maintenance or, in extreme cases, reduce your rent to compensate for the inconvenience.
If the maintenance issue makes the property uninhabitable—such as a lack of air conditioning during the summer—you could potentially terminate the lease early. Again, this would require RDC approval.
Хозяин
So, document everything and go through the proper legal channels?
Людмила Ямалова
Exactly. Keep records of your complaints, including emails, text messages, and photos of the issues. This evidence will be crucial if you need to escalate the matter legally.
Хозяин
Thanks, Ludmila. We’ve got more questions coming in, but we’re going to take a short break. When we come back, we’ll address more of your legal concerns. Stay tuned to Drive Live Talks Legal!
Хозяин
Welcome back to Drive Live Talks Legal. We’re joined by Ludmila Yamalova from Yamalova & Plewka to answer your legal questions. Ludmila, let’s dive right into another query we’ve received. This one comes from a listener asking about non-compete clauses.
The question reads: “My labor contract has a clause stating that I cannot work for a competitor for a year after resignation. I don’t intend to leave, but if I ever do, I can’t work in another field as this is my area of expertise. If the company doesn’t give me an NOC, where does that leave me? Also, if I find a job with a competitor in a different position unrelated to my current work, would that still violate the clause?”
Людмила Ямалова
This is a common concern, especially for professionals in specialized fields. The simple answer is that, in most cases, non-compete clauses in labor contracts are difficult to enforce.
For a non-compete clause to be enforceable in the UAE, it must meet very specific criteria. It should be reasonable in terms of duration, geographic scope, and the nature of the restriction. If the clause is overly broad—such as barring you from working in your entire industry for a year—it’s unlikely to hold up in court.
Хозяин
So, would the listener be in breach if they took a different position with a competitor?
Людмила Ямалова
If the new role is substantially different and doesn’t compete with the company’s business, then the non-compete clause likely wouldn’t apply. The courts here look at whether the new position poses a legitimate competitive threat to the former employer.
Additionally, it’s important to note that enforcement of non-compete clauses in the UAE doesn’t usually result in injunctions. That means the courts won’t prevent you from taking the new job. Instead, the former employer could claim damages, but they would need to prove actual financial harm, which can be difficult.
Хозяин
Would you recommend that the listener consults a lawyer before taking such a role?
Людмила Ямалова
Yes, it’s always a good idea to get professional advice tailored to your specific situation. A lawyer can review the clause and your potential new role to determine the likelihood of enforcement. That way, you’ll know where you stand and can make an informed decision.
Хозяин
Great advice. Let’s move on to another question. This one is about a tenancy dispute. The listener writes:
“I vacated my apartment, and the landlord is charging me AED 900 for repainting a two-bedroom apartment in a simple off-white color. My tenancy contract doesn’t mention repainting costs. Is this charge legal, and do I have to pay it?”
Людмила Ямалова
This comes down to what’s stated in the tenancy contract. If repainting costs are not explicitly mentioned, you’re not obligated to pay them.
The landlord can only charge you for damages beyond normal wear and tear. Repainting, in most cases, is considered routine maintenance and is the landlord’s responsibility.
Хозяин
What if the landlord deducts the cost from the security deposit?
Людмила Ямалова
If the landlord deducts the cost without your consent, you can file a case with the Rent Dispute Settlement Centre (RDSC). The RDSC handles such disputes and will review the tenancy contract and any supporting evidence to determine whether the deduction was justified.
I recommend documenting the apartment’s condition when you move out—photos and videos can be very helpful. If you have evidence showing that the apartment was in reasonable condition, it strengthens your case.
Хозяин
So, the key is to review the contract and be prepared to challenge any unfair deductions.
Людмила Ямалова
Exactly. And remember, the burden of proof is on the landlord to justify the charge. If they can’t produce a receipt or evidence of actual repainting costs, the RDSC is likely to side with the tenant.
Хозяин
Thanks for clarifying, Ludmila. Let’s take one more question before we wrap up. This one is about canceled property projects. The listener writes:
“I invested in an off-plan property, but the developer ran into financial trouble, and the project was canceled. What’s the process for recovering my money? I’ve heard that liquidation committees handle this—how does it work?”
Людмила Ямалова
When an off-plan project is canceled, the process of recovery typically involves the Dubai Land Department (DLD) and the Dubai Courts.
The DLD first assesses the project’s status and determines whether it should be canceled. If it is canceled, the case is referred to the courts, where a liquidation committee is appointed.
The committee’s job is to review all claims from investors and assess the project’s remaining assets, such as funds in escrow accounts or the value of the land. Once the assets are liquidated, the funds are distributed among the investors.
Хозяин
What should the listener do to ensure they’re part of this process?
Людмила Ямалова
First, check if your project is listed on the Dubai Courts’ canceled projects page. If it is, you’ll need to file a claim with the liquidation committee. Submit all relevant documents, including your sale and purchase agreement, proof of payment, and any correspondence with the developer.
It’s crucial to stay updated on the case, as the courts will set deadlines for submitting claims. Missing these deadlines could jeopardize your chances of recovering your investment.
Хозяин
That’s helpful advice. Ludmila, thank you as always for your insights and expertise.
Людмила Ямалова
Always a pleasure. Thank you for having me.
Хозяин
That’s all we have time for today on Drive Live Talks Legal. Remember, if you have legal questions, send them in early for next week’s session. Stay tuned for more on DubaiEye 103.8.
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