Dubai: Ask the Law questions are answered by lawyer Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
Property project
Question 1: Questioner asks: Three years ago, I purchased a property directly from a developer and the project is based in Ajman. I signed a purchase form and paid an agreed downpayment, first payment 20 per cent and after six months I paid another 20 per cent (my total payment is 40 per cent) then I stopped the payment. More than two years have lapsed and the project has not commenced yet. When I contacted the Real Estate Department in Ajman, I found that the project is not registered at the Real Estate Regulatory Agency and there is no escrow account for the project. I also found out that there is a mortgage for the whole plot of the project so as per real estate regulatory the developer is not allowed to sell unless he gets permission from the bank and the real estate regulatory body. I failed to get a conclusive answer and they also refuse to terminate the sale agreement and return my payment from the developer. How can I legally get back my payment from the developer?
Answer 1: The questioner should file a fraud and breach of trust complaint before the Public Prosecution in Ajman against the developer. The developer is not registered pursuant to the decrees of properties, which oblige the developer to register his name at the Real Estate Regulatory Agency as well as open an escrow account. He was supposed to deposit the monies received from the questioner into the project’s escrow account rather than in his own account. The questioner also may file a real estate case before the court and ask the court to terminate the purchase contract and refund his rights in full and with compensation to cover all his damages.
Non-competition clause
Question 2: Questioner from Dubai asks: I have been working in a company for almost two years. Six months ago, the company asked me to sign a non-competition letter not to work all over the UAE for two years. I signed the same in a side letter, not in my original labour contract. My labour contract signed with the company does not include a non-competition clause. I submitted my resignation three weeks ago and I made a complaint at the Labour Ministry because my company has rejected my resignation — they will accept my resignation only if I cancel my contract with a ban and not to work for another company as per the competition clause which we both signed. The arbitrator at the Labour Ministry tried to convince my company that due to my age (I am only 20 years old) I’m not supposed to sign such a letter, but my company insists that the case must be referred to the labour court. My case now is with the labour court. Is the company entitled by law to ask me to sign such a clause after signing an employment contract without such clause? Is this clause binding on me?
Answer 2: Article No. 127 of the Federal Labour Law No 8 of 1980 states the following: “Where the work assigned to a worker allows him to become acquainted with the employer’s client or to become familiar with the secrets of his business, the employer may require him to refrain, after the termination of his contract, from competing with him or participating in any enterprise competing with his own. Such agreement shall be valid only on condition that the worker is at least 21 years of age at the time of its conclusion that the agreement is limited, as regards the time, the place and the nature of the business, to the extent necessary to safeguard the employer’s lawful interest”. Therefore and pursuant to the above article, the competition clause which the questioner has signed is invalid and not considered on the basis that according to the above article the worker shall be at least 21 years of age.
— Compiled by Bassam Za’za’, Legal and Court Correspondent
