Employee can work for sponsor only

Employee can work  for sponsor only

By Nasser Ahmed Al Osaiba

Published: Mon 20 Aug 2012, 9:30 AM

Last updated: Tue 7 Apr 2015, 12:39 PM

I have been working with a company in Dubai for more than six months on a limited contract. Now, I want to avail power of attorney of my mother’s company in Sharjah.

Since it’s a family business, my mother wants me to take care of some parts of the business and for that she is willing to give me power of attorney to legally run her business. Is it legal to work for my mother’s company under a power of attorney approved by the Sharjah Court though I am working for another employer?

According to Article 67 in the third chapter of the federal law number 6 for the year 1973, a sponsored person is under a duty to not work except for his sponsor. Similarly, the sponsor is under a duty not to employ who is not sponsored by him. Hence, if your mother’s entity is not sponsoring you, you cannot take a role in it and this will be considered as a breach of the law.

Breaching any of these obligations and working in an entity where you are not sponsored put all the parties in a risk of being prosecuted and hence, subject to a minimum fine of Dh50,000 each or imprisonment and the same amount of fine.

Labour ban

I have been working in a company here from August 2010 on an unlimited contract. I have resigned recently with 30 days notice period. I would very much appreciate if you kindly advice me on the labour ban, if any, end of service benefits, and my passport which they kept with them.

First of all, the employer does not have the right to hold the employee’s passport without the latter’s consent. Secondly, according to Articles 125, 131, 132,133 and 137 your end of service benefits are; a certificate of service (free of charges), the expenses of sending you back to your home country (a ticket and any other agreed upon expenses according to the labour contract), and your gratuity would be the salary of 21 days for each year divided by three. Finally, Under the UAE laws, if an employee leaves a job without completing two years, then, the Ministry of Labour will impose a work ban for six months or for one year if requested by the employer.

Sponsoring wife

My visa is issued from Dubai and I am staying in Sharjah. I am planning to bring my wife here. Presently, I have a sharing accommodation with my friend and his family in a double bedroom flat. The tenancy agreement is in his name. Will it be a problem to apply for a visa for my wife?

According to Article 1 of the Cabinet decision number 9 for the year 1995 a foreigner can sponsor his family if his salary is not less than Dh3,000 and his employer provide him with an accommodation, or Dh4,000 if his employer does not provide him with accommodation.

End of service benefits

I am working in a Limited Liability Company in Dubai as an accountant for 20 years and getting a basic salary of Dh5,000 per month. I want to cancel my visa and go back to my country. One of the partners (shareholders) of this company, who was joint signatory for cheques, died three months back. Due to his death, the other signatory cannot withdraw any amount from the company account. If I cancel my visa now, will it affect my gratuity payments? If there is any delay, how long it may be? What will be the amount of my gratuity?

As per Articles 132, 133 and 137 of the federal labour law, your gratuity is (21 days for the first five years + 30 days for each year from the sixth year). Additionally, you have the right to claim any balance of leaves or salaries that was not paid within the last 12 months.

On the other hand, regarding the signatory issue, cancelling your visa do not affect the amount of your gratuity, however, no one can anticipate how long it will take to resolve the signature issue and start running the company again.

Compiled by Ahmed Shaaban

Nasser Ahmed Al Osaiba is an Emirati Partner and Lawyer at Global Advocates and Legal Consultants, legal member in the Rent Dispute Committee, Umm Al Quwain, with Master Degree in commercial law, Melbourne University, Australia. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, P.O. Box 11243, Dubai.

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