How long does an absconder have to wait before being allowed to return to the UAE?



I worked in the UAE from April 1, 2014 until February 7, 2015. I then took emergency leave for 10 days due to some health problems but after that I did not come back  to continue my work. After six months my visa was cancelled automatically but I still have a problem with immigration. How can I fix this? I don’t have any debts in the UAE. SJ, India

If someone is working in the UAE on an employment visa and they leave and do not return as expected, the employer will register them as an absconder. This is particularly the case when someone was on a fixed-term contract and if an individual leaves service in this way they will have broken the terms of the contract of employment. To have the visa cancelled, the employer has to file an absconding case and then replace the employee or they may not get back the refundable bank guarantee that is paid when taking on the original employee. Most employers will register an absconder as there are costs to their business if they do not take this course of action.

When someone is legally marked as an absconder they are "blacklisted" and are banned from entering the UAE for at least one year in accordance with Article 128 of UAE Labour Law which states: “Should the non-national worker leave work without a valid cause prior to the end of the contract with definite term, he may not get another employment even with the permission of the employer for a year from the date of abandonment of the work. No employer may knowingly recruit the worker or retain in his service during such period.”  As SJ left in 2015 I would have expected any ban to have expired by now. Assuming his visa was properly cancelled by the employer, as visas do not actually expire and must be formally cancelled, he should not be prevented from applying for a new visa or be rejected on doing so.

If he is being denied a new visa there is either something registered in the system that means he is not eligible to work in the UAE, or I have known of a few cases where people have identical names and they have been confused in the system. Either way, SJ will need to contact the applicable Ministry in the relevant emirate where he was employed to inquire as to why an application is not being approved. This newspaper cannot do this on behalf of readers.

I work for a private firm in Sharjah and have a limited contract. I have now finished my second contract so have worked two periods of two years and now want to leave. My company informed me there is no gratuity for me. I checked my labour contract and the period of contract is two years, but the company is telling me I have to work for five years to get my end of service gratuity. Is this correct by law? What can I do?  CS, Sharjah

If someone is employed on a limited contract and decides not to renew the contract at the end of the fixed term, and has given notice to the employer of their intent, this is not considered to be a resignation, simply a non-renewal of the contract. This is an option that is available to both the employer and the employee. Note that such contracts are deemed to have terminated automatically unless it is renewed by both parties.  Article 13 of the UAE Labour Law states: “The employment contract shall be terminated …should the specified term of the contract expire.” An employee is not obliged to renew, even if an employer wishes them to do so, and this is not considered to be a breaking of any contract terms or resignation in the usual sense.

The wording of the published law can be confusing in respect of the payment of an end of service gratuity for a person on a fixed contract so I hope that the employer in this case has misunderstood. If a person is employed on a fixed-term contract (also known as a limited contract) they must complete the duration of the term in order to be entitled to receive a gratuity payment. As CS has done just this he is entitled to payment of the gratuity in full - that is 21 days of basic salary for each year of service, per Article 132 of the UAE Labour Law. It is only where someone actually resigns with fewer than five years of service that the Gratuity is not payable.

If the employer still refuses to pay the end of service benefit, CS should immediately register a case with the Ministry of Human Resources and Emiratisation (helpline number 800 665) and they will be able to intervene with the employer.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years' experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only.

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

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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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

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.”