Issue of gratuity

I would like to seek Gulf News support in resolving this issue with United Arab Bank (UAB). I have a salary transfer loan with UAB. On changing my job in October, I went directly to the UAB branch and communicated with them on the subject and also informed them about the anticipated gratuity deposit by my previous employer.

On November 26, I went to the branch (Marina-Dubai) and submitted my salary transfer letter and copy of passport with new visa stamped. I requested the bank to release my gratuity amount. Citing few bank policies, initially the branch manager was reluctant; but later on agreed to release the amount.

On November 29, as a follow up, I visited the branch again and I met a new branch manager (as the previous manager left). He also mentioned about bank policies and assured me that will do his best.

Since I was not getting any reply from the branch, I lodged a complaint with UAB call centre. As per the call centre executives with whom I have communicated, since I have submitted all the relevant documents, I am eligible to get the subject amount released from the bank.

After vigorous follow up, I received a call from the branch and they told me that the said amount cannot be released as my new company is not listed with UAB.

As per my understanding, all the banks will release the gratuity/end of service benefits from previous employers on obtaining new company visa and salary transfer letter. I felt the response from UAB is disappointing.

So, I request Gulf News to intervene on the matter and support in getting the subject amount released.

From Mr Suresh Kumar


The management of UAB responds: We at United Arab Bank endeavor to work with our customers and are committed to serving them better. As a Bank governed by the Central Bank of UAE, we strictly abide by their regulations in terms of Debt Burden Ratio of a customer and Approved Employers Listed companies. In this context please find our response to the complaint raised by Mr Suresh Kumar.

Mr Suresh Kumar was granted a loan from UAB based on his salary transfer to the Bank and salary transfer letter confirming from his previous employer that in case of termination or resignation the end of service benefits (EOSB) will be transferred to UAB.

The customer has been delinquent since 2014 and has defaulted on his payments to the Bank by over 60+DPD (days past due) in last two months.

Also, as per the salary transfer letter received from his previous employer, the Bank is entitled for the EOSB and adjust it towards the outstanding loan.

Mr Kumar responds: Thanks for your reply. But, I am not happy with the bank’s response. As per my understanding, all the banks release the gratuity payment on getting new salary transfer letter (that means new company is taking up the responsibility of transferring the salary).

I changed the job as my previous company was not prompt in paying salary. So, there were few delays happened. More over the last two months due mentioned has now been adjusted from the gratuity deposited (I have given the instruction for the same ). In short, the response from bank is not satisfactory.

UAB responds: The case has been reevaluated by credit and collections department of the Bank, however, given the customer’s history with our collection department - (The customer has been delinquent since 2014 and has defaulted on his payments to the Bank by over 60+DPD (days past due) in last two months); And the fact that customer’s new employer is not a listed company with UAB. Based on our compliance regulations we cannot continue giving a loan to a customer from an unlisted company. Hence the outstanding amount will be deducted from his EOSB. The customer has signed a waiver as well to use his EOSB in case if he resigns, goes delinquent or defaults on his payment while availing the loan from UAB. Trust this clarifies the matter.

(Process initiation: December 17. Response from organisation: December 20. Process completion: December 27.)

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