I was working in a company in Dubai for more than four years. Six months ago I went on vacation, but I cannot return because I have not paid my bank loan for more than six months. My friend has now advised me not to return as the bank has filed a police complaint and submitted my guarantee cheque to police. The amount is more than Dh300,000. My company has informed me that my work permit will be cancelled and a ban imposed on me if I don’t return. My friend told me that the bank is going to press for an international arrest warrant against me. What should I do?

 

If the questioner intends to pay off the loan, he can delegate someone to make the payment to the bank on his behalf and obtain a clearance from the bank in order to clear his name from police records otherwise the bank (creditor) by law has the right to apply for the international police warrant arrest against the questioner. Further, he may settle the matter with his company either by returning to work after he finishes the bank problem, or ask the company to cancel his residence legally to avoid violation of labour ministry laws.

 

End-of-service benefits

I would like to know my end-of-service gratuity as per the UAE labour law as I have worked in a company for more than seven years. A month ago, the company terminated my labour contract. Is my end-of-service gratuity calculated on the basis of 21 or 30 days? I used to work two hours a day as overtime. Is the overtime pay included in my end-of-service gratuity? Am I entitled to an air ticket; it is mentioned in my labour contract.

 

Article 132 of Federal Law of 1980 states the following: “A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows: 1) 21 days’ remuneration for each year of the first 5 years of service. 2)

30 days remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed 2 year’s remuneration”.

Finally, overtime pay does not include in end of service gratuity as per the UAE labor law and the question is entitled for air ticket only if he cancelled and did not join with the new sponsor.

 

Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.