Two years ago, I rented a villa in Abu Dhabi for family use. I spent a lot of money on decoration and maintenance on the assumption that I would live in the villa for at least five years. However, I signed a tenancy contract for two years after the real estate office I was dealing with assured me that the rent will not be increased and the contract will be renewed for another two years on the same conditions. This was a verbal understanding and not a written agreement. One month ago, the manager of the real estate office sent me a letter informing me that the owner desires to demolish and rebuild the villa. The letter requested me to vacate the premises at the end of my rental contract, which expires this October. As the villa is in good condition, I assume that they have no desire to renew the contract. What legal recourse do I have under the UAE rental law?
In case of demolition, the Rental Law in Abu Dhabi obliges the landlord to follow certain conditions stipulated in clause 23, paragraph 6. First, the premises shall have been constructed at least 15 years ago. Second, the landlord needs to obtain necessary permissions by the competent authorities for the purpose of demolition. Therefore, the questioner may reject the landlord’s request, and send the real estate office a letter seeking renewal of the tenancy contract. If the landlord or his representative real estate office do not respond and renew the contract, the questioner should file a complaint before the committee established to look into rent disputes.
End-of-service benefits
I have worked as a sales manager in a company for more than five years on an unlimited labour contract. My compensation package includes salary and other entitlements. Two months ago, the employer sold the company although it was doing good business and making profits. My problem started when the new employer asked me to move to another branch of the company with a change in job description. The new position was a downgrade and I also had to take a salary cut. I submitted my resignation after giving one-month notice to the company. On the expiry of the notice period, I asked the company to settle my end-of-service entitlements, but the new employers rejected my request. He claimed that he was not obliged to settle my dues for the period that I was working with my previous employer. He claimed that they agreed in the sale agreement that the previous employer will take full responsibility for paying the dues of employees as he signed the labour contracts. The new employer will only hold responsibility for new employees. How should I obtain my entitlements? Who is responsible for my entitlements as per UAE labour law, the previous or new employer?
Article 126 of the UAE Labour Law states: “Where a change occurs in the form or legal status of the establishment, contracts of employment that are valid at the time of the change shall remain in force between the new employer and the workers of the establishment, and their service shall be deemed to be continuous. Both the original employer and the new employer shall be jointly liable for a period of six months for the discharge of any obligations resulting from contracts of employment during the period preceding the change; after the expiry of this period the new employer shall solely bear liability.”
Questions answered by Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.
— Compiled by Bassam Za’za’, Legal and Court Correspondent
