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HOW TO COLLECT END-OF-SERVICE BENEFITS (EOSB) AFTER LEAVING THE UAE

Leaving a job in the UAE and returning home can be a bittersweet experience.  While you're excited for your next chapter, there's also the important matter of securing your rightful End-of-Service Benefits (EoSB). EoSB is a specified monetary payment paid by the organization to the employee upon employment termination. It is also referred to as severance pay or gratuity pay. Dubai: These benefits provide financial security during your transition and are a crucial aspect of UAE labor law.  This guide will equip you with the knowledge and steps to navigate the process of collecting your EoSB after leaving the UAE, ensuring a smooth and successful resolution. Common Concerns and Legal Provisions: One of the most common concerns for employees enters about leaving the UAE without closing their salary account and before receiving the full and final settlement. They worry about the legality and whether their account might be frozen after their residency visa is canceled. As a reply, ALKETBI says that in the UAE, employers are required to pay end-of-service benefits within 14 days of the employee's last working day, as stipulated by Article 53 of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations. Eligibility: ·       You are generally entitled to EoSB if you have completed one (1) year of continuous service with your employer under a limited. Exceptions might exist for specific termination reasons outlined in the employee’s employment contract or the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations . Steps to Take: Gather Documents: ·       Employment Contract ·       Latest Salary Certificate (pay slip) ·       Emirates ID copy (if applicable) ·       Proof of visa cancellation (if applicable) ·       Any other relevant documents (if) mentioned in your contract regarding EoSB Contact Your Employer: ·       Inform your employer in writing (email or registered mail) of your intention to claim your EoSB. ·       Clearly state your last working day and your preferred method of receiving the EoSB (bank transfer or cheque). ·       Request a written confirmation of the EoSB amount you are entitled to receive based on your salary and years of service. Negotiate (if Necessary): ·       If you disagree with the calculated EoSB amount, attempt to negotiate with your employer. Refer to your employment contract and the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations for the calculation formula. Ministry of Human Resources and Emiratization (MoHRE): ·       If your employer refuses to pay or delays payment unreasonably (usually within 14 days of your last working day), you can file a complaint with the MoHRE. ·       You can initiate the complaint process online through the MoHRE website (https://www.mohre.gov.ae/) or by visiting their service centers. ·       Bring all your documents and any communication with your employer regarding the EoSB dispute. Additional Considerations: ·       Leaving the Country: While it's ideal to settle your EoSB before leaving the UAE, it's not always possible. In such cases, clearly communicate your bank details (IBAN) to your employer for electronic transfer. Ensure you have a reliable contact person in the UAE who can follow up on your behalf if needed. ·       Bank Account Closure: If you plan to close your UAE bank account after leaving the country, inform your employer beforehand and discuss alternative payment methods if electronic transfer is not possible. Key Points: End-of-Service Payment: Employers must pay all due salaries and entitlements within 14 days post-contract expiry. Bank Account Status: Leaving the UAE post-residency visa cancellation typically does not lead to automatic freezing of salary accounts. However, it's recommended to close all UAE bank accounts if you do not intend to return. Account Closure: Procedure: According to Article 9(b) of the UAE Central Bank Regulation No. 29/2011, banks must close accounts without penalties if requested after one year from the account opening date. The closure and certification must be completed within seven days of the request. Dormant Accounts: Accounts with no activity for three years may be marked as dormant per UAE Central Bank Circular No. 1/2020. This status applies if there are no transactions or communications from the account holder. Recommended Steps: Follow-Up: Contact your previous employer to ensure timely payment of end-of-service benefits into your UAE bank account. Withdrawal and Closure: Once the benefits are credited, withdraw the funds, close the account, and obtain a closure certificate from the bank. Applicable Laws: Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations UAE Central Bank Circular No. 1/2020 on Dormant Accounts UAE Central Bank Regulation No. 29/2011 on Bank Loans & Services to Individual Customers For further assistance, consult with legal experts or relevant authorities. In Conclusion By following these steps and understanding your employee rights under UAE labor law, you can successfully claim your EoSB even after leaving the UAE. Remember, gathering the necessary documents, initiating clear communication with your employer, and knowing when to involve the Ministry of Human Resources and Emiratization (MoHRE) are key to a positive outcome. With proper planning and this guide as your reference, you can confidently secure your EoSB and move forward with your next chapter. ALKETBI TOUCH: ALKETBI team is highly skilled and frequently provides legal assistance specializing in sustaining employers and employees. For further insights and updates on employment law reforms, visit our website and social media platforms as it provides valuable resources and guidance for understanding the complex landscape of employment law in the region and beyond. If you request further guidance or you have concerns and queries, Let us know!

DIFC NEW SECURITY LAW: IMPORTANT INFORMATION FOR CREDITORS

The new Security Law implemented in the Dubai International Financial Centre (DIFC) introduces significant changes impacting creditors' rights and how they secure their loans. Dubai: The DIFC implemented DIFC Law No. 4 of 2024 the Law of Security 2024 (New Law) on March 8, 2024, replacing the previous Law of Security 2005 (Old Law). This update aligns DIFC’s security framework with international standards, particularly the UNCITRAL Model Law on Secured Transactions. While the new regulations bring clarity and modernize the framework, they also pose challenges for existing creditors who must take action to maintain their security rights. Key Changes and Considerations: Transitional Provisions: Applicability: The New Law applies to all security rights, including those created before March 8, 2024 (Prior Security Rights). Validity: Prior Security Rights remain valid between the original parties but must be perfected under the New Law to remain effective against third parties. Actions Required: Creditors must file a financing statement with the DIFC Registrar of Security by March 8, 2025, to maintain the priority and effectiveness of Prior Security Rights. Creation of Security Rights: The new law emphasizes the importance of "perfection" for a security right to be enforceable against third parties. This means creditors need to take specific steps to register their security interest with the relevant authorities (typically the DIFC Registrar). Previously, creditors might have relied on "attachment" (simply creating the security agreement) to secure their claim. Under the new law, perfection takes precedence. Simplification: The New Law removes the "attachment" requirement from the Old Law. A security right is now created by a security agreement, provided the grantor has rights in the asset or the power to encumber it. Description and Form: Secured obligations can now be described broadly, and security agreements may be oral if the secured creditor possesses the encumbered asset. Knowledge of Existing Security Rights (Section 54): A creditor's knowledge of existing security rights in the collateral (the asset used to secure the loan) does not affect the priority of their own security right. Impact: Creditors should conduct thorough due diligence to identify any pre-existing security interests in the collateral before extending credit. Security Rights in Receivables (Section 55): The new law allows creditors to create security rights over future receivables generated by the debtor (the borrower). This provides more flexibility for creditors to secure their loans. Perfection and Priority: Perfection: Security interests are perfected by filing a financing statement. Specific rules apply to different assets, including negotiable instruments and independent undertakings. Priority Rules: The order of perfection determines priority, with additional clarity on conflicts involving commingled assets, judgment creditors, and acquisition security rights. Enforcement: Out-of-Court Enforcement: Secured creditors can enforce security without court application, though practical challenges remain, especially for tangible assets. Consent from both the grantor and the possessor is required for taking possession out of court. Asset-Specific Rules: Proceeds of Collateral: The definition of "identifiable proceeds" is expanded to include various forms of income from encumbered assets. Commingling: Security rights extend to commingled assets, subject to specific conditions. Digital Assets: Provisions for digital assets reflect the DIFC’s Digital Assets Law, allowing security rights to be perfected by granting control over the assets. Assignment of Receivables: Security rights in receivables remain effective despite agreements limiting the grantor's rights. Independent Undertakings (Section 56): The beneficiary of an independent undertaking (a third-party guarantee) can create a security right over the future proceeds of the undertaking. This offers additional protection for creditors relying on such guarantees. Key Benefits for Creditors: ·       Enhanced Clarity and Certainty: Clearer rules on perfection and priority can help creditors ensure the enforceability of their security interests. ·       Increased Options for Securing Loans: The ability to create security rights over future receivables and independent undertakings provides creditors with more tools to mitigate risk. Recommendations for Creditors: ·       Review Existing Loan Agreements: Ensure existing loan agreements comply with the new law's perfection requirements. ·       Consult with Legal Counsel: Seek advice from a lawyer specializing in secured transactions to understand how the new law impacts your specific situation. ·       Conduct Thorough Due Diligence: Before extending credit, investigate the presence of any pre-existing security interests in the collateral. Conclusion: The New Law significantly enhances the legal framework for secured transactions in DIFC, aligning it with global best practices. By providing clearer rules for the creation, perfection, and enforcement of security rights, it strengthens DIFC’s position as a leading global financial hub and lays a solid foundation for future financial sector innovations. For detailed advice and steps to ensure compliance, creditors should consult legal experts or the DIFC Registrar of Security. ALKETBI TOUCH: ALKETBI team is highly skilled and frequently provides legal assistance specializing in sustaining employers and employees. For further insights and updates on law reforms, visit our website and social media platforms as it provides valuable resources and guidance for understanding the complex landscape of legal changes in the region and beyond. If you request further guidance or you have concerns and queries, Let us know!

PENALTIES FOR BLOGGERS AND INFLUENCERS OPERATING WITHOUT A LICENSE IN THE UAE

Bloggers and influencers operating without a license in the UAE face several potential penalties, depending on the nature of their activities. Dubai: In the UAE, bloggers and influencers are required to obtain a license to operate legally. Failure to secure this license can lead to severe consequences, both financial and legal. Key Penalties: Financial Penalties: Initial Fines: Unlicensed bloggers and influencers can face fines ranging from AED 5,000 to AED 500,000. The amount depends on the severity and frequency of the violation. Increased Penalties: Repeat offenses can result in higher fines and additional penalties, increasing the financial burden on the violator. Legal Action: Court Cases: Influencers who continue to operate without a license may be taken to court for violating the regulations. Civil and Criminal Liability: Depending on the nature of the case, violators could face civil or criminal charges. This can lead to further fines and even potential imprisonment. Suspension of Activities: Account Suspension: The National Media Council (NMC) has the authority to temporarily or permanently suspend the social media accounts of unlicensed influencers. Business Closure: For agencies operating without the necessary licenses, the NMC can mandate the closure of the business, halting all operations. Factors Affecting Penalties: National Media Council (NMC) officials have stated they actively monitor social media for unlicensed influencers and may issue warnings before imposing fines for repeat offenders. The severity of the penalty can vary depending on factors like: ·       Frequency and Scale of Unlicensed Activity: Occasional posts might attract a lighter fine compared to a sustained, commercial operation. ·       Content Type: Content deemed harmful or offensive could lead to stricter penalties. ·       Cooperation with Authorities: Showing willingness to comply with regulations might result in leniency. How to Avoid Penalties: ·       Obtain the Necessary License: Apply for an influencer license or a media license for your agency (if applicable) through the National Media Council. ·       Understand Regulations: Familiarize yourself with the UAE's media regulations and advertising standards for influencers. ·       Partner with a Licensed Agency: Consider collaborating with a licensed influencer marketing agency that can handle licensing and compliance aspects. Licensing Requirements: Fees: Influencers must pay the required licensing fee. The fee structure can vary, and it is essential to check the latest rates with the NMC. Renewal: Licenses are valid for one year and must be renewed annually. Failing to renew on time can also attract penalties. Compliance: Influencers must adhere to the UAE’s content and advertising standards, ensuring that all published content is in line with national regulations. Importance of Compliance: Securing a license and adhering to UAE regulations is crucial for influencers to maintain their operations smoothly. It not only helps in avoiding hefty fines and legal actions but also boosts the influencer's credibility and trust among their audience. Steps to Obtain a License: 1.     Application: Submit a detailed application to the NMC, providing all necessary personal and professional information. 2.     Fee Payment: Pay the required licensing fee. Ensure that all payments are made promptly to avoid any delays. 3.     Compliance Check: Ensure that all content adheres to the UAE’s content and advertising standards. 4.     Annual Renewal: Keep track of the license expiration date and renew it annually to remain compliant. For further details on the licensing process and to ensure compliance with all regulations, influencers are advised to consult the National Media Council or seek guidance from legal experts. ALKETBI TOUCH: ALKETBI team is highly skilled and frequently provides legal assistance specializing in sustaining individuals and businesses of all sizes. For further insights and updates on any legal topic, legal reforms, visit our website and social media platforms as it provides valuable resources and guidance for understanding the UAE legal landscape and provides insights on a regional basis and beyond. If you need guidance or have concerns and queries, or you would like us to assist you in applying for your license - Let us know!

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