Villa sublet illegally
Question: Six months ago I rented my villa to a person for family use but a month ago I discovered the person had violated Dubai Municipality rules and sublet the villa to another person who was using it to house single people. In the tenancy contract, which I signed, it clearly mentions that he is not entitled to sublet. When I found about this violation, I asked the subtenants to vacate the villa but they refused, stating they had rented the villa from the original tenant and paid the rent in full (with post-dated cheques). I found out also from Dewa (Dubai Electricity and Water Authority) that they had not paid the electricity bill for more than three months. As the owner of the villa, am I entitled to file a case to vacate the villa due to the original tenant subletting the villa without my permission? Are the subtenants, by paying full rent, entitled to stay in the villa until the end of the contract?
Answer: The original tenant violated the terms of the tenancy contract when they sublet the villa without written permission from the landlord. Therefore, in the event that a rental case has been filed before the rent committee, the committee will rule that the villa should be vacated and handed over to the landlord.
Gratuity calculation
Question: I would like to know how the end-of-service gratuity is calculated and whether it is calculated on the basic salary plus the housing allowance and whether the said salary is calculated on what is stated in the employment contract or on the current salary because my company has not amended my labour contract.
Answer: Article 134 of Federal Labour Law No 8 of 1980 states the following: “Without prejudice to the provisions of laws that grant pensions or retirement benefits to employees in certain firms, severance pay shall be calculated on the basis of the wage last due for monthly, weekly and daily paid workers, and on the basis of the average daily wage referred to in Article 57 hereof for those paid on piecemeal. The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children’s education allowance, allowances for recreational and social facilities, and any other bonuses or allowances”. So as per the article mentioned the current basic salary will be calculated and housing allowance is not part of the basic salary.
In-house job transfer
Question: I have worked for an establishment run by one employer for more than two years. My employer is now asking me to transfer to another affiliated establishment which will give me a position and salary lower than the one stipulated in my labour contract. If I fail to respond to my employer’s request he will dismiss me from my work as stated in his letter. Is the employer entitled to ask an employee to transfer to another establishment with a lower salary and position than that mentioned in their labour contract? Will it be considered arbitrary dismissal if my employer fires me?
Answer: As per UAE Labour Law the employer is not entitled to transfer the employee to another establishment owned by him unless the new job and salary is the same or better than the existing job. Therefore, if such a violation has been made by the employer and if the employee has been dismissed from work because he refuses to accept such a transfer, it will be against the law and such a dismissal may be deemed arbitrary.
— Questions are answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
