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Overstay fine is Dh100 for first day

K. K. Sarachandra Bose (Legal View) / 12 December 2011

I have signed an offer letter with a new company. After serving the set notice period with the previous company, I got my visa cancelled. The new company has applied for a work permit, but it has not been approved yet. How long is it possible to stay in the UAE after visa cancellation? Can I overstay even after the grace period while waiting for work permit approval from the ministry of labour? Does signing the offer letter allow me to stay after the end of the grace period, irrespective of whether my work permit has been issued or not? Will I be liable to any fines, deportation or legal actions for breaking the grace period?

After visa cancellation you can stay in the UAE for a period of 30 days. You cannot overstay while waiting for the work permit approval. And mere signing of the offer letter does not allow you to stay in the UAE after the end of the grace period. If you overstay, you may face imprisonment and deportation. The fine for overstay is Dh100 for the first day and Dh25 each for the rest of the days.

Skill level

I have been working in a private company for one month. I am on an unlimited contract. For my interview, I was offered the position of HR Manager and as per my visa I am an Administrative Officer.

Now, I work as an HR Executive. It is a firm with more than 250 employees and I am the only person in this position. I find the job very hard and exhausting. I am, however, doing my best to complete my duties on time. How can I change my job? Would there be any ban on me?

If an employee hired under an unlimited contract resigns before the completion of two years, a six month ban shall be imposed against him unless such an employee gets a new job offer in accordance with the skill level specified by the Ministry of Labour. In your letter you have not specified your educational qualification. The skill level specified by the Ministry of Labour is as follows:

First Level — If you have a university degree and above, your salary with the new company shall not be less than Dh12,000. Second Level — If you are a diploma holder, your salary with the new company shall not be less than Dh7,000.

Third Level — If you are a high school pass certificate holder, your salary with the new company shall not be less than Dh5,000.


Transaction fees

I had opened an account with a bank in Ras Al Khaimah for my salary transfer.

Though I moved to another company in Dubai I did not close that account and the balance was zero. Later, I discovered that the transaction fees has been piled up to quite an amount which I have to pay to have the account closed. Is this piled amount a liability? Can the bank resort to measures like detaining me at the airport or blocking me from exiting the country for this amount owed? How do I close the bank account by paying a minimum amount?

Even though you have opened a zero balance salary transfer account in a bank in Ras Al Khaimah, it was your duty to either close the account or check the statement of your account regularly, when you left for new employment in Dubai. The bank has the right to change their policy and therefore you may be liable for the piled up amount. The bank has the right to take all possible measures like obtaining a judgment against you and restricting you from exiting the country, for recovering its dues. Therefore you may negotiate with the bank and settle the matter amicably.


End of service gratuity

I have been working in Dubai for six years on a limited contract. I have renewed my visa for the third time for two years. Now I want to change my job before completing the two years. Will I be liable to a work ban? If so, for how long? Also, am I entitled to end of service benefits?

As per the UAE Labour Law, an employee who works under a limited contract has to complete the term of the contract.

Since your contract is limited, a six month ban may be imposed on you if you resign before the completion of the contract period. In such cases your employer is also entitled to claim compensation for up to a maximum amount equal to your 45 days salary.

As you have already completed five years on a limited contract, you will be entitled for end of service gratuity.

Compiled by Ahmed Shaaban


KK Sarachandra Bose is a Partner/Corporate, Commercial and Contract Lawyer at Dar Al Adalah Advocates and Legal Consultants. Readers may e-mail their questions to: news@khaleejtimes.com or send them to (Legal View), Khaleej Times, Dubai PO Box 11243.

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