A reader from Dubai asks: I work for a company in Dubai. Two years ago I was recruited in this company in the sales department with a Dh5,000 salary and later in the second year my salary was increased to Dh12,000. As per the labour contract, I am entitled to take two months leave with pay every two years. After two years of continuous employment, my annual leave is now due in September 2014 and I have applied for it. However, my company has calculated my leave salary as below:

For the entitled annual leave in the first year of service it applied the first year based on the lower salary (Dh5,000) and for the entitled annual leave in the second year it applied it based on the revised salary (Dh12,000).

When asked for clarification on this calculation, the accounts department replied saying this is applicable as per the UAE Labour Law. Can you give me a correct answer as per the UAE labour law on the above issue?

My second question is does the employer, as per the labour law, have the right to fix the start date of the employee’s annual leave?


Answer: The Labour Law shall adopt the salary last due to the worker in the calculation of their respective annual leave in accordance with the provisions of the Supreme Court in this regard. Finally as per the UAE Labour Law Federal Law No(8) of 1980 as amended Article 76, which indicates the following: “The employer may fix the date of the commencement of annual leave and, if necessary, divide such leave into not more than two periods. Not withstanding the foregoing, the provision respecting the division of leave shall not apply to leave fixed for young persons.”

Mortgage rate query

A reader from Dubai asks: I took out a mortgage in July 2010 to buy property in Dubai. The apartment has been handed over and the instalments commenced on the mortgage in July 2011. In the offer letter, executed by me and the bank, the rate was agreed between me and the bank. After two years, the bank has increased the rate. I have contested with the bank for an amendment on the grounds that the bank is not legally authorised to increase the rate. In the mortgage agreement signed between me and the bank no clause is mentioned that gives the bank the right to increase the rate.

Answer: As per the law the said bank, by law, individually and without reference to the questioner, is not entitled to make such an amendment, which is a breach of the agreed contract.

Tenancy contract

A reader from Dubai asks: I renewed the tenancy contract for my apartment two weeks ago but the real estate company, which represents the landlord told me, that they could not do anything with regards to the rent (I had requested a deduction), saying I had to pay the same amount as last year. I disagreed with that but gave them the post-dated cheques, even though I had not signed the tenancy contract, which was being prepared and was to be signed by the landlord. As there is no signed tenancy contract can I cancel it and look for somewhere else cheaper to rent and get back my post-dated cheques from the real estate office. What is my legal position as per Dubai rental law?

 

Answer: In accordance with Article no 6 of Law 26 of 2007 regulating the relationship between landlords and tenants of real estate in Dubai which states the following: “If the tenant continues to occupy property after expiry of the contract period without any objection by the landlord, then the contract shall be renewed for a similar period or for one year, whichever is less, with the same terms and conditions”. Therefore, based on the above article, the questioner’s contract is renewed automatically in accordance with the said article, especially as the questioner has provided the landlord with the cheques for the new tenancy contract.

 

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants

— Compiled by Bassam Za’Za’, Legal and Court Correspondent