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Sign visa cancellation paper only after receiving dues

KK Sarachandra Bose (Legal View) / 19 September 2011

Q) I have been employed in a private company for the last 12 years on an unlimited contract.

Q) I have been employed in a private company for the last 12 years on an unlimited contract. The company has served me a termination letter giving a 30-days notice period. In the letter, they mentioned that my gratuity and end of service benefits will be settled upon cancellation of visa. It also mentions that my commission will be paid at the discretion of the company. How can I get my last eight month’s  commission? Can the company hold back the commission for whatsoever reason? In my appointment letter there is a clause that commission is payable on clearing of outstanding amount. As I am served with a termination letter will I be entitled for gratuity on my commission?

A)   Once you sign the application for canceling the visa, the burden to prove that you have not in fact received your dues will fall on you. Therefore you may sign the application for canceling the visa only after getting all your dues. You are entitled for your commission and gratuity based on your basic salary. If the company is not settling your dues before canceling the visa, you may file a complaint with the Labour Department and seek remedy.


No ban if contract term is completed

Q) I have been working as an archive clerk in a limited liability company in Dubai since the last three years on a limited contract. If I have completed my three-year contract — which expired on August 15 — and do not wish to continue in service with the present company, do I need to give a 30-day advance notice before the expiry of the contract or can I give a 30-day notice period starting from August 15? Will I be liable to a ban if I refuse to renew my contract? If I continue and renew the contract and after six months I resign, will a ban be imposed or not?

A)   As your contract has already expired on August 15, you need not give a notice. If you refuse to renew your contract, a ban may not be applicable as you have already completed the contract term. If you renew the contract and resign after six months, then a ban may be imposed on you. In such cases your employer is also entitled to claim compensation up to a maximum amount equal to your 45 days salary. As per the UAE Labour Law, if an employee under a limited contract resigns before the end of the contract, he shall not be entitled to the end of service gratuity unless his continuous service exceeds five years.


Basic salary

Q) I work in a restaurant on an unlimited contract. I receive Dh2,000 every month and my company provides me with food, accommodation, and transportation. But in my labour contract my basic salary is only Dh1,000. How much should my basic salary be? Should it be Dh1,000 or Dh2,000 which I already get every month?

A)   Your basic salary is Dh1,000 as mentioned in your labour contract.


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.

Compiled by Ahmed Shaaban

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