2018 Labour Law Changes

Employers and business owners must be familiar with UAE’s Labour Law. The law is stipulated and explained in the Federal Law No. 8 of 1980. As you can see, it’s been decades now since this law was enforced and there are various aspects of the law that needs to be polished. If you have any difficulty in understanding this UAE’s Labour Law, then it would be helpful to seek legal services Dubai.

The Federal Labour Law no. 8 includes information related to the significant rules and regulations you need to know regarding hiring, gratuity, termination, salaries, benefits, and others.

In this post, you will know more about some of the recent changes in the Labour Law and therefore, be more informed on what you must do to comply with these changes.

Refined Article 18 of the Labour Law

The current law is seen to lack refinement when it comes to employers paying their employees end of service entitlements.

In the new law, there is now an added qualification for an employee to demand a penalty from their employers. The new law also proposes that there should be a maximum cap on how much penalty is awarded to the employee.

This proposed law modification can be a little difficult to comprehend and thus, you might need some expert labour law legal advise.

Recruitment

The proposed new law encourages employers to prioritize UAE nationals when hiring new workers. The law requires businesses to hire UAE nationals for specific roles.

Unusual working arrangement

The new law seeks to clarify how employers should handle part-time and non-permanent workers. It further defines the term Secondment and determines the extent of obligations and entitlements these employees may have.

New pension system

Another proposal of the new law is to add a new pension system to help UAE national employees have a better disposition when they retire.

Additional provision for employees end of service gratuity

The employee may now enjoy pension benefit even if his/her employment was terminated for a cause. The new law goes on to say that even if the employee stopped working, as long as the reason was acceptable, will still have a claim for proper compensation.

Thankfully, there are different law firms in Dubai that can help you deal with these new changes.

Leave and absences

The paid sick leave is reduced to ten days and employees will be paid in full. However, the next twenty days would only be paid in half.

In addition to sick leave, the new law includes paternity leave and paternity pay, something that parents who have more than 12 months of tenure would enjoy.

These are just some of the most prominent changes in the Labour Law. These changes hopefully will fill in the obvious gaps from the current to the new law. Seek professional legal advocates in Dubai.

Motei and Associates has some of the best lawyers who have the right knowledge and experience to handle all employment issues in the UAE. They handle issues such as appointment, termination, benefits, codes of conduct, outsourcing, and confidentiality, to name a few. Get in touch with them today to learn more.

Procedure to Apply For Divorce in UAE

When you are having a divorce in the UAE, the last thing you want to worry about is the technicality and legality of the procedure. Divorce places so much stress and difficulties already and you would like to go through it as painless as possible. That is why you need the help of the best divorce lawyer Dubai.

One study shows that the UAE has one of the increasing rates of Divorce in the Middle East and its rate could even rival those in the West. If you are among those who are considering or have decided to get a divorce, here is a quick overview of the procedure you need to expect.

Meet with a conciliator

A conciliator is a guidance counselor who helps couples find the solution to their problem. It is worth noting that a couple in the UAE needs to first meet with a conciliator before finding legal consultants in Dubai. This is done to determine whether divorce is really the best course of action for them or there’s still hope in saving the marriage.

The following procedures applies only for UAE Nationals or Expats married to UAE Nationals.

Go to the First Instance Court

If marriage counseling didn’t work, the couple should now bring their case to the First Instance Court. During this process, one party brings up the reason for their divorce and the other will provide their reply. This process is repeated according to the discretion of the judge.

It is during this step that each party will bring evidence through the use of witnesses and documents. It would be helpful if you seek professional legal services Dubai during at this time.

Go to the Appeal Court

 After a judge in the First Instance Court passes a result, the case will then be forwarded to the Appeal Court. The case will be reviewed by three judges.

Go to the Court of Cassation

Once the case reached the Court of Cassation, both of the parties can’t provide evidence anymore. The Court of Cassation will have a final review of the case, focusing more on determining whether technical and legal processes have been strictly followed or not.

Go to the Enforcement Court

As the name implies, the Enforcement Court is tasked to enforce the result of the divorce case. They make sure that the verdict has been carried out.

On average, the whole divorce process takes about three to twelve months, depending on its complexity. Moreover, divorce in UAE for expats may take a different course. For example, the law applied to them could be the divorce law of their country of origin. Thus, if you are one of them, you need to check first with the UAE courts which law will be used in your case.

Motei and Associates provides excellent and top-rated legal services for people seeking a divorce. They have the right expertise and knowledge to help clients find the best solution to their case in a cost-effective manner.

Everything You Need to Know About Debt Collection in Dubai

Do you need a corporate lawyer Dubai to help you understand debt collection? If yes, you better read this post.

According to statistics, almost 50% of the UAE residents are in debt and a significant number of them are actively looking for a loan. Not only that, but even those who are not in debt are unable to save money and find themselves in danger of being part of the statistics.
In Dubai, the story is not any different. Chances are, you might even know of someone right now who are in debt. If you fail to pay your loan, lenders will hire debt collectors and do their best to get their money back. Whether it is you or a family member, it is a must that you know how debt collection in Dubai works.

What are debt collection agencies?

A debt collection agency is hired by lenders to help them collect debts from individuals or businesses. In Dubai, commercial debt collection or recovery is a thriving economy. With more and more people are getting in debt, the service of debt collection agencies has become indispensable. Along with this, legal services Dubai have also sought after.

A debt collection agency has the right lawyers and professionals who have the skills, experience, and knowledge on how to deal with different situations involving debts.

Two types of debt recovery agencies

In a lender-borrower relationship, the first party is the lender and the second party is the borrower. In Dubai, debt recovery agencies are broadly categorized into two:

• First-party agency – in most cases, a lending company has their special group of people who specialize in collecting debts. Since these people are still part of the lending company, they are considered as a first-party agency.
• Third-party agency – when the lending company exhausted all possible means to collect a debt, they will now hire a third party agency. In most cases, the third party agency is considered as a last resort and thus, borrowers can expect that they will do their best to get back the money.

How do debt collectors work?

Debt collectors are good at what they do. They have the necessary network to track down borrowers, analyze their assets, and identify the best way to recover unpaid funds. They would also hire lawyers in UAE to get more legal backing.

In Dubai, there are different ways on how debt collectors work. These are some of them:

• Attachment – debt collectors identify land, house, vehicle or other property and consider them as a way to pay off debt.
• Levies – debt collectors identify savings account of the debtors and serve a levy to the bank. As a result, the account will then be frozen for typically 21 days until the debtor can justify the due debt.
• Wage garnishment – this works well if the debtor is employed. Debt collectors directly get in touch with the debtor’s employers and deduct the due payment from the salary.

There are more things to know about the debt collection in Dubai. So be sure you find the right law office to help you deal with recovering debt.

Motei and Associates, one of the trusted law firms in Dubai, UAE,  who have the expertise and experience to help you deal with debt collection. They assess your unique situation and provide the best solution possible.

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How and When to Use a Power of Attorney in the UAE?

There comes a time when you can’t do everything for your company, organization, or private life. Thus, using a power of attorney is a convenient way to let other people handle legal matters on your behalf. This is when it would be useful to find one of the best lawyers in UAE.

Before anything else, it is important to know what power of attorney really is.

In its simplest term, a power of Attorney (POA), sometimes referred to as a letter of attorney, is a written authorization that allows one person to represent or act on another’s behalf. The principal, donor, or grantor is the one who gives the authorization. On the other hand, the agent or attorney-in-fact is the one who receives the authorization.

So, how do you use a power of attorney in the UAE? Here’s how.

The first thing you need to do is choose your POA. There are two types of POA that you should know about as part of the legal services Dubai. It can either be the general or special POA.

General POA, as the name implies, is a general authorization to your agent. It means that your agent can do any type of transactions and activities on your behalf. Contrariwise, the special POA allows your agent to only do the specific activities outlined in the document.

The next step is to get the POA drafted. As one of the most crucial parts of the process, you need to make sure that the draft clearly, professionally, and accurately conveys your specific situation and what it is that you need to accomplish. This is needed if you want to save time, money, and energy.

After drafting your POA, you need to get it notarized. There are different ways you can do this. You can visit the nearest notary office or visit their website online. The price that you need to pay to get your document notarized depends on the need to translate the document, length, and other factors. An attorney in Dubai can help you prepare your POA.

These are the basic steps on how you can use a power of attorney in the UAE.

Another question you might ask is when you should use a power of attorney. There are different reasons and scenarios a POA is needed. Here are some of them:

•         When a person needs to go overseas and let someone handle their affairs while they are away
•         POA as a way to prepare when someone gets incapacitated
•         A person who faces serious or long-term debilitating medical condition
•         A person who is too busy to do the legwork of a specific activity
•         A person who is physically absent to represent himself

These are just some of the ways you can use POA. If you want to learn more, you can visit one of the best Dubai law firms near you.  

Motei and Associates has been providing quality and reliable legal services to satisfied clients since 2002. They have the right knowledge and experience to help you prepare power of attorney documents and other legal materials.

Top 3 Legal Pitfall Small Business in the UAE encounter

If you are a start-up and are not blessed with a high start-up capital, you have to budget your cash flow properly. Bearing the local payment behavior in mind your start-up cash flow should cover minimum 18 months of operational costs. Most new companies, which started off with extremely good ideas or innovative service offers surrendered their business within the first year of operation. The main reason for their closure is lack of cash flow. If asked why this happened, a common answer of the respondents was that they underestimated the actual payment time. Even though payment terms were agreed upon, but the actual payment turnaround took by far longer. Here is the first pitfall – not enough cash flow to cover operational costs.

In a lot of cases the proprietor looks at his/her local partner for assistance. And here is the second pitfall companies or individuals get trapped in – the legal company set up or structure. The most important part of opening a business in the UAE is finding the appropriate legal structure. The Department of Economic Development recognizes 13 legal company structures. Here lawyers in UAE should be consulted as not all legal structures recognized are suitable for a business.  Some people might be naturally anxious of lawyers, if you belong to this category of people business consultants in Dubai could also assist. However, such a decision is most likely the most important decision one will take at the beginning of their business venture. This makes it imperative that an attorney in Dubai should be consulted. A good and experienced lawyer such as Motei and Associates will review the business, check all applicable legal structures and suggest the best, most relevant and appropriate legal set up for each individual business and situation.

Once the legal structure is decided, the next step is the locality. Also, here, the consultation of Dubai law firms should be looked at. The leasing or rental laws of commercial properties in the UAE are different and some might even say unique. This is the third and most underestimated pitfall. The UAE and here Dubai has several freehold and leasehold areas. To review these areas and compare to “regular” commercial property offers should be left to an expert. An experienced law firm like the aforementioned Motei and Associates will review the structure of the leasing contract highlight possible pitfalls and will negotiate a lease agreement which will suite a start-up company.  

Motei and Associates is a Dubai-based law firm boasting vast experience in disputes resolution and general corporate, commercial transactional services. 

Divorce, Children, and Taxes under UAE Law

The UAE legal system is founded on civil law principles influenced by Egyptian law and Islamic Sharia law.  Sharia law constituting the guiding principle and source of the law in the UAE.

UAE legislation is formulated into a number of major codes providing for general principles of law with a significant amount of subsidiary legislation added over the years. The UAE expanded its legislation to include a comprehensive body of federal legislation. These are manifested in form of federal codes of law and emirates' laws issued as decrees by the ruler of each emirate. Personal Status Law is Sharia based and covers marriage, divorce and succession. The courts' interpretations of family law provisions are based on the Sharia, which the UAE mandates is used as the primary legal justification on matters involving family law. Legal services in Dubai will assist you in understanding Sharia law and how it will apply in any particular case. The UAE Constitution emphasizes the role of family as the basis of society. This is founded on patriotism, religion, morality and ethics. The Constitution also provides for society to be responsible for protecting childhood and motherhood.

In the UAE different roles are assigned to mothers and fathers. These differences are laid down in the descriptions of guardians and custodians.

Guardian

A guardian of a child financially maintains the child, makes important decisions about the child's education and upbringing, and generally takes care of the child's affairs.

Custodian

The custodian, on the other hand, is concerned with the child's day-to-day life. The custodian has actual, physical custody of the child and must raise, take care, educate the child.

The law is only concerned about the wellbeing of the child. In most divorce cases in the UAE the child’s custody will be granted to the mother if she is deemed fit.  Law firms in Dubai firm on Sharia law will assist in understanding and advising proper cause of action. 

Divorces for Emirati’s and expats differ as a divorce of an Emirati couple falls under UAE law and here Sharia law. Whereby for expats there is a choice of jurisdiction. The jurisdiction could be the wife’s or the husbands home country or the local UAE court, this irrespective of where they live during the divorce.  Depending on the home country different rules will apply; this is also applicable when children are involved in the divorce. An attorney in Dubai, preferable from your home country will provide the best legal advise. 

What You Need to Know about Dispute Resolution

To clarify on the term dispute resolution; Dispute resolution is the process of resolving disputes between parties; these parties could be two or more. The are three basic types of dispute resolution:

·         Mediation

·         Arbitration

·         Litigation

In the US the definition is slightly different but points ultimately at the same resolution types.

1. Adjudicative processes, such as litigation or arbitration, in which a judge, jury or arbitrator determines the outcome.
2. Consensual processes, such as collaborative law, mediation, conciliation, or negotiation, in which the parties attempt to reach agreement.

Here we will simplify and explain the three basic types most common in dispute resolution Dubai:

Mediation

Here a neutral third party is tasked with the goal of mediation to help disputants come to consensus on their own. The mediator or mediators works with both or more conflict sides to explore the interests underlying their positions rather than imposing a solution.

This form or dispute resolution allows all parties to  “vent” their emotions and fully explore their grievances. This is in a lot of cases effective as the mediator works separately and together to come to a legal dispute resolution, which is voluntary, sustainable and nonbinding.

This form of dispute resolution is less costly for all parties.

Arbitration

Here a neutral third party serves as a judge who is responsible for resolving the dispute. This third party is called an arbitrator. The disputants can negotiate virtually any aspect of the arbitration process, including whether lawyers will be present or a dispute resolution service will be obtained and which standards of evidence will be used.

The arbitrator listens as each side argues its case and presents relevant evidence, then renders a binding decision.

Arbitrators hand down decisions that are usually confidential and that cannot be appealed.

Like mediation, arbitration tends to be much less expensive than litigation.

Litigation

This is the most televised type of dispute resolution and it is maybe therefore the most familiar type of dispute resolution, civil litigation typically involves a defendant facing off against a plaintiff before either a judge or a judge and jury. The judge or the jury is responsible for weighing the evidence and making a ruling. Information conveyed in hearings and trials usually enters the public record.

Lawyers typically dominate litigation, which often ends in a settlement agreement during the pretrial period of discovery and preparation. Among these three dispute resolution types litigation is the most costly version.