Banks can dictate terms for settling loan dues
Bonnette E. Chan of Dubai asks: "My fiancé took a loan from a bank in the UAE. He lost his job six years ago and was unable to pay off the remaining balance. I went to the recovery department of the bank and inquired how I could settle the loan on his behalf. The principal amount is Dh26,000. As of now, the loan has reached Dh93,000. I offered them Dh26,000 to settle and obtain the release but they refused, instead asking me to pay Dh60,000 to acquire the release letter. (The whole amount he took out was Dh40,000 and he was able to pay Dh14,000 before he left.) Is there any solution to this, other than agreeing to pay off the amount the bank wants?"

No, there is not. I am afraid any out of court agreement must be reached with the bank.

So the solution lies in negotiation with the bank over the amount it will accept.

It is quite obvious the extra amount over the basic loan amount is accumulation of interest.

This interest plus the basic loan amount is the actual due amount; hence, it is better to settle the matter with the bank.

Internet telephony illegal
Suraj of Dubai asks: "How legal is it to use internet telephony using a computer, for example using dial-up devices such as IP star and lP phones?"

It is not legal, as the Emirates Telecommunications Organisation (Etisalat) is the sole entity which has the exclusive right to provide internet, multimedia and telecommunications services in the UAE.

Termination of services
Marlene Estrella Afalla of Abu Dhabi asks: "Can an employer terminate the services of an employee who has worked for almost ten months without any warning? What are the rights of the employee at this stage? Can they sue their employer?"

An employer cannot terminate the services of their employee after they have successfully completed their probation period and remained in their job unless for a valid reason pursuant to the Labour Law and employment contract.

Furthermore, the employer is obliged by law to serve a notice of termination to the employee. If the employer does not do so, he will be liable for compensating the employee in lieu of notice.

Such compensation is calculated in proportion to the period of the employee's service. The matter can be taken to the Labour Relations Department at the Ministry of Labour and Social Affairs if it is believed termination of employment was without any valid reason.

According to article 115 of the Labour Law, if a job contract of a limited period is revoked by the employer for reasons other than those specified in article 120, the employer must compensate the worker for any prejudice the latter sustains, provided the compensation shall in no case exceed the remuneration due for three months or the residual period of the contract, whichever is shorter, unless the contract contains a provision to the contrary.

Violation of agreement
John F. Ramesh of Abu Dhabi asks: "I am looking for a single bedroom flat through various property agents. My requirement is a single bedroom flat with a maximum rent of Dh35,000 to be paid in three instalments and a grace period of seven days to pay my first instalment from the date of booking the flat. I was told by one agent they had found a suitable flat. When I contacted them I was told the rent was Dh35,000 with 5 per cent commission, to which I agreed. They also agreed I could pay three instalments and have seven days to pay my first instalment. I then paid them an advance of Dh1,000, which they asked for to reserve the flat. I was told the flat had been booked in my name and the advance was adjustable against the rent. When I went to collect the details next day, they said the rent had to be paid in two instalments and the first one within two days. They asked for Dh2,000 extra as deposit and Dh1,000 for an electricity deposit. Also, they said the Dh1,000 was extra commission for them as they had to pay someone to get the flat at that rate. I never agreed to this. What I agreed to was totally different and I said I did not require the flat. They now refuse to repay me the advance. Is there any way to get my advance back legally?"

You have to approach the police to get your money back. According to article 148/1 of the Federal Law on Civil Transactions, payment of the earnest money shall be regarded as evidence the contract has become final and irrevocable unless agreement or customs are to the contrary.

Cancelling visa
Fazal Rahman of Karnataka, India, asks: "I was working in Dubai and have gone on vacation for one month with the approval of my company, after 28 months of service. Since I am thinking of settling down in my hometown I do not wish to go back. I have a valid visa and a return ticket. My indemnity and benefits as well as my belongings are in the company's custody. What is the best way to get my balance and savings and to cancel my visa. I do not want to have any problems in visiting the UAE in the near future. Could I send my passport to cancel my visa. Please advise."

You will have to come to Dubai to cancel your residency and receive all your entitlements from your company.

Deportation order
A British reader asks: "I was convicted in 1996 for drug peddling and received a life sentence. I was pardoned several years later and deported to India. My passport was stamped with a one-year ban. I would now, three years after deportation, like to visit the UAE. Do I face legal problems re-entering the UAE? I have a British passport and therefore don't need a visa but what is the legal side after a pardon and a deportation?"

In administrative deportation, the deported person cannot re-enter the UAE unless the deportation order is lifted by a directive from the Minister of Interior.

Such an order can be obtained by addressing the Minister of Interior and pleading for mercy in order to cancel the deportation order issued against you.

Only when the deportation order is lifted will you be allowed to enter the country.