Question
My labour contract expires next month but my visa is valid until next May. If I want to renew my labour contract, can I switch from limited to unlimited duration? My plan is to only work one more year until I finish my credit card liability then I will leave and find a better option. In case I resign, am I still entitled for an air ticket? In my offer letter it says that if I resign I’m not entitled to a ticket.
Answer
Under UAE labour law, upon the expiry of your contract you have the right to choose what type of contract you want to sign, therefore you can renew for an unlimited period. You also have the right to avail of an air ticket at the time you leave work unless you are joining a new employer.
Question
I recently had a call from prosecution saying that there is a criminal case against the manager of my company and against me personally as a partner in the company. What is my responsibility as a partner in an Limited Liability Company (LLC) as per UAE commercial law?
Answer
Article 71 of UAE Federal Law No. 2 of 2015 concerning commercial companies, says: “A partner shall be liable only to the extent of its share capital. The holder of the capital of the company shall not be liable for the obligations of the company other than to the extent of the capital as set out in its Memorandum of Association.” Therefore as per the above-mentioned article, a shareholder in an LLC is responsible only to the extent of his share/shares in the capital of the company. The exception to this rule is that such shareholder will be held personally liable, if he exploited the principle of the independent liability of the company, concealed fraudulent acts or misappropriation of the funds from the company in order to cause harm to his partners or creditors. In such cases, the protection bestowed by law for shareholders in an LLC will not apply. They will be held liable and that liability will extend to personal assets.
