UAE Labour Law states that an employee should not bear the costs of residency visas and labour cards, but all too often employers add a clause to contracts stating that employees who leave within a certain time are liable to reimburse them. Andrew Parsons / The National
UAE Labour Law states that an employee should not bear the costs of residency visas and labour cards, but all too often employers add a clause to contracts stating that employees who leave within a ceShow more

90-day notice must be followed under terms of contract



I am on an unlimited UAE employment contract and have worked for this company for almost two-and-a-half years. My employment contract states that a 90-day notice period is to be given in the event of resignation, but I have found a new job and wish to start it as soon as possible. My question is: am I legally bound to serve the 90-day notice period even though I have completed two years of service and have not signed a new contract? I was offered a new two-year contract, but I refused to sign it as it I didn't like some of the terms. - BM Abu Dhabi

It is unusual to be offered a new contract if you are on an unlimited contract. An employer can request a change of terms, which the individual can refuse and may break employment. However, continued employment is deemed to be the case if the employee is still in the same position and accepting a salary. In most cases, accepting a salary is tantamount to accepting the terms of employment. If your employment contract states 90 days and you agreed to those terms (by signing and/or taking the job), then that is legally binding. Contract law, in this case, takes precedence over UAE Labour Law.

I have been employed by a company in the UAE for eight months. I have resigned from my job and am intending to return to Australia. The company is now asking me to pay Dh12,000 for visa expenses. Can they do this under UAE Labour Law? It seems a lot of money and I thought it was for them to pay, not the employee. PH Dubai

UAE Labour Law states that an employee should not bear the costs of residency visas and labour cards, but all too often employers add a clause to contracts stating that employees who leave within a certain time are liable to reimburse them. If an employee signs the contract and agrees to these terms, then they are enforceable, despite the Labour Law. The costs would have to be paid when the employee leaves the company. In this case, however, Dh12,000 is far more than the visa would cost to arrange. This is unreasonable and I would suggest contacting the Ministry of Labour as it might suggest that the company only charge what it has actually paid in terms of your visa cost.

I work on a part-time basis in Abu Dhabi and have been employed by the company for just over two years. My work hours are very flexible. So far, I have not asked for a return airfare, any medical insurance or holiday pay. I am paid for the time that I work and I work an average of 15 hours per week. Am I entitled to any gratuity when I leave my job? There are a number of people in the same situation as me at work and our manager is now asking us to sign a document to say that we will not make any claim on them for airfares, holiday pay or gratuity. I don't want to sign unless their request is in accordance with the UAE Labour Law. DE Abu Dhabi

DE is sponsored by her husband and has a labour card from her employer, as well as a basic contract of employment. All workers are eligible for an end-of-service gratuity payment, unless they sign correspondence waiving their right to it. Part-time employees are not exempt and the end-of-service gratuity is based on their average income. Where the employer is offering membership of a savings plan that is to the employee's benefit, you will often find that this is an alternative to the standard gratuity. The employer cannot refuse to pay a gratuity just because someone works part-time. An employer cannot force an employee to sign a waiver document. While specific agreements can be made, it would be far more reasonable for this to be agreed at the outset, not a couple of years down the line. There is no legal requirement to provide airfares for someone employed in the UAE, but even part-time employees are entitled to holiday pay and statutory holidays with pay. All employees with an Abu Dhabi residency visa must be provided with medical insurance by the employer, unless the employee already has cover, such as being on a husband's policy.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com

Results

3pm: Handicap (PA) Dh40,000 (Dirt) 1,000m; Winner: Dhafra, Antonio Fresu (jockey), Eric Lemartinel (trainer)

3.30pm: Maiden (PA) Dh40,000 (D) 2,000m; Winner: Al Ajayib, Antonio Fresu, Eric Lemartinel

4pm: Handicap (PA) Dh40,000 (D) 1,700m; Winner: Ashtr, Abdul Aziz Al Balushi, Majed Al Jahouri

4.30pm: Handicap (TB) Dh40,000 (D) 1,700m; Winner: Falcon Claws, Szczepan Mazur, Doug Watson

5pm: Sheikh Dr Sultan bin Khalifa Al Nahyan Cup – Prestige Handicap (PA) Dh100,000 (D) 1,700m; Winner: Al Mufham SB, Al Moatasem Al Balushi, Badar Al Hajri

5.30pm: Sharjah Marathon – Handicap (PA) Dh70,000 (D) 2,700m; Winner: Asraa Min Al Talqa, Al Moatasem Al Balushi, Helal Al Alawi

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Torque: 230Nm

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A MINECRAFT MOVIE

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BMW X7 xDrive 50i

Engine: 4.4-litre V8

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia