Хозяин
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Хозяин
Drive Live Talks Legal. Our guest today is Ludmila Yamalova from Yamalova & Plewka. Ludmila, how are you today?
Людмила Ямалова
Very well, thank you. Good to be here.
Хозяин
We do have quite a few questions today. Last week, we had to close the lines because it was so busy. Let’s kick off with some of the questions we couldn’t get to. Here’s the first one: If I was only paid one month’s salary when I was dismissed due to reorganization about two years ago, is it possible to go back and ask for two more months’ salary that I wasn’t paid at the time?
Людмила Ямалова
No, in short, because the statute of limitations has run. The statute of limitations is a legal principle that limits the time within which you can claim a right. For employment cases in the UAE, that period is one year. If you haven’t claimed your right within one year, you lose the ability to do so.
Хозяин
I didn’t know there was a statute of limitations for employment cases.
Людмила Ямалова
Yes, there is. While general statutes of limitations for legal claims, such as breach of contract, can run for up to 15 years, employment-related claims are limited to just one year. It’s a very short timeframe.
Хозяин
Here’s another question: If I resign from a limited contract, do I have to serve a notice period?
Людмила Ямалова
No. For a limited contract, there is no requirement to serve a notice period.
Хозяин
Interesting. Another question: This one says salespeople are paid 50/50 on target earnings, meaning salary and monthly commissions make up 100% of the total pay. The company refused to pay full severance and only paid the basic salary. Is this right?
Людмила Ямалова
No. Assuming this case is about the end of the contract, employees are entitled to end-of-service benefits, calculated as 21 days of basic salary for every year of service.
For salespeople, the courts consider the average monthly earnings over a period of time—usually six months to a year. This includes commissions, bonuses, or other variable pay elements. The courts then calculate the end-of-service benefits based on this average.
Хозяин
So the court will look at the average over six months to a year?
Людмила Ямалова
Yes, but it’s ultimately up to the court’s discretion. There’s no specific legal standard that mandates the timeframe for averaging commissions or bonuses, but in practice, courts typically use six months to a year.
Хозяин
Let’s go to the text line. Kumar has asked: There was an article today stating that from December 4, prosecutors can fine offenders for minor offenses like bounced checks instead of taking them to court. Does this mean bounced checks are now decriminalized?
Людмила Ямалова
Good question. No, bounced checks have not been decriminalized. Newspaper articles often reflect opinions or practices, but they are not binding. The law remains unchanged unless it is officially amended and published in the UAE’s Federal or Emirate-specific Official Gazette.
What may have changed is the way prosecutors handle certain cases. For example, they may impose fines for bounced checks instead of immediately proceeding with imprisonment, while still ensuring the checks are paid. However, until there is a formal legal amendment, bounced checks remain a criminal offense.
Хозяин
So relying on a newspaper article as a defense wouldn’t work?
Людмила Ямалова
No, absolutely not. In legal matters, only published laws and decrees in the Official Gazette are reliable. Newspaper articles are not enforceable in court.
Хозяин
Here’s another question: My rent contract in Acoya is expiring at the end of February. The area isn’t listed in the RERA Rent Index Calculator. If my landlord asks for an increase, what should I do?
Людмила Ямалова
If the property isn’t listed in the RERA Rent Index, the landlord must still follow proper legal procedures to request an increase. This includes:
- Giving 90 days’ notice before the end of the lease.
- Justifying the increase with evidence, such as comparable rents for similar properties.
Without these conditions being met, you can legally challenge the increase. The Rent Committee will ultimately decide if the increase is justified.
Хозяин
Great advice. Here’s another question: Is there any indication that the 25% minimum down payment for a mortgage loan might be reduced to stimulate the real estate market?
Людмила Ямалова
We haven’t heard anything about this being officially considered. In the UAE, when significant legal changes are made, they tend to happen first and are announced later, rather than being preceded by public discussions. So, unless it’s published in the Official Gazette, we can’t speculate on when or if such changes will happen.
Хозяин
Cedric has texted in: I work for a global company. My UAE contract is under DMCC, but my company has affiliates in DIFC and abroad. If I have issues with multiple affiliates, where should I raise my complaint—locally or with the parent company?
Людмила Ямалова
Start with the entity that sponsors your UAE visa—in this case, the DMCC-registered company. Legally, your employment relationship is tied to your sponsor.
If you’re performing work for other affiliates, you may also have a claim against them, depending on the nature of your issues. However, your priority should be addressing concerns with your UAE sponsor.
Хозяин
Let’s wrap up with this question from Pete: There was an announcement about wills recently. What’s changed?
Людмила Ямалова
The announcement pertains to a new Dubai law regarding wills, which now allows wills to be registered with Dubai Courts in addition to DIFC. This law provides another option for non-Muslim expats who want to register wills for real estate and other assets.
We’re currently reviewing the details, as the law was recently published in Arabic. Once we’ve fully translated it, I’ll provide a more in-depth explanation, possibly next week.
Хозяин
Thanks, Ludmila. That’s all we have time for today. Ludmila Yamalova from Yamalova & Plewka, thank you for joining us.
Людмила Ямалова
Always a pleasure.
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