UAE | Housing & Property
Payment for company accommodation
Ask the Law - May 8, 2008
- By Dina Aboul Hosn, Gulf News
- Published: 18:46 May 9, 2008
A reader in Dubai asks: I have worked for a company in Dubai for the past two years. I had a three-year limited contract with the company. Last year, the company decided to pay the rent for our home, which amounts to Dh5,000 per month. It was given to myself and another friend because of our good record in the company. The deal was that since we had a two-bedroom apartment we were to rent out one room and pay that money to the company. The contract was in the name of my partner. Six months later my partner left the place but the company kept that house saying that I should take it as my increment this year. Now I'm leaving and I'm giving up the apartment two months before the contract ends. The company is asking me to pay the balance of two months to give to the landlord as I haven't completed the contract. Is it fair on the company's part to do so? They have also threatened me that they will not give me my end-of-term benefits since they'd use that money to recover the loss. The deal was clearly between my company and the other guy. They didn't charge him anything. Please advise me what to do. There has never been an official document between the company and us that would say we had to pay for the house when we leave. It was taken for granted by both sides that the office would take care of it. The company's cheques have all been cleared, so nothing has to be paid to the landlord.
I would like to assure the questioner that the company's request to pay the balance of two months is illegal as such a commitment shall be borne by the company, especially because the cheques submitted to the landlord hold the name of the company, and the questioner has been granted such accommodation as a reward for his performance in the company.
Moreover, the company has no right to threaten the questioner that they will not give him his end-of-term benefits. So, if the questioner failed to settle the same with the company amicably, he may file a complaint before Ministry of Labour.
- Question answered by advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants.
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