‘Can my bank charge a late payment fee for a one-week delay?’

Question: I have a credit card with Abu Dhabi Commercial Bank. Every month, I pay the minimum amount on the same date. Last month, I received a lower-than-usual commission and could not pay the minimum amount on the due date. I usually make a payment on 28th of the month but was a week late. The bank has charged me a fee of Dh240 ($65) for late payment. Is there a provision to apply the late payment charges for a one-week delay in payment? Is this legal? BF, Abu Dhabi Answer: When anyone takes out a credit card, they have to complete an application form with the legal terms of the agreement. This will include information about all charges, including any fees or penalties for late payment. Even if an application is made online or through an app, there is a link to the terms and conditions. ADCB has full information for every single account and credit card that they offer on their website with sections where customers can download a full fee schedule . This is in the public domain, available to everyone. This schedule lists a late payment fee of “Dh241.50 if minimum payment due is not made by payment due date”. It also states that the minimum payment is 5 per cent of the balance or Dh100 if higher. While a week may not seem much of a delay, the bank is within its rights to charge a penalty and that penalty is likely to be automated, so it will happen no matter how brief the delay may be. Q: I will be moving to Riyadh to take up a job soon, but I have been told it takes a few weeks to organise my residence visa. Am I allowed to fly in for a week to start the process, then leave and go back on a tourist visa after two weeks to start work? CG, UK A: In theory, it is possible to leave Saudi Arabia and then return but it will complicate the visa processing system. No one can undertake employment for a company when on a tourist visa. CG is not permitted to work until her Iqama, or residency permit, is in place. Arranging an Iqama takes more than the completion of a form. The applicant must take a brief medical test, provide biometric information, and the employer and government ministries will need the passport for a period of time. The employer first applies for a visa reference number, which allows a person to enter the country, and then apply for the Iqama, for which the individual is expected to be present in Saudi Arabia. As CG’s passport has to be submitted for the Iqama process, if she leaves the country, it is likely to take longer to finalise and that will delay the date when she can start work. Q: I have resigned from my company and want to start a new job next month. I gave 30 days’ notice, which I understand is what the labour law states, but my employer says that my employment contract states 60 days, so I cannot leave until that time has finished. Surely the notice period stipulated by the labour law is the correct one? What notice period do I have to serve? KN, Dubai A: While it is not permitted to contract around the UAE labour law, a notice period can be for more than 30 days if both parties have agreed to this. Article 43 of the Labour Law states: “Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work shall be performed during the notice period agreed upon in the contract, provided that such period is not less than (30) thirty days and not more than (90) ninety days.” KN will have signed a contract of employment and that will state the terms that apply and the notice period. Signing the contract is agreement to such terms, including the notice period and this will take precedence. The legal employment contract, that is fully valid in law, is the one that is lodged with the Ministry of Human Resources and Emiratisation. It is worth checking that the notice period is the same and anyone can check their own official contract. The quickest way is probably through the MoHRE app. Once registered, go to “services” and then the “my contract” option. Personal information must be added but it will then show the contract. If the official contract states a notice period of 30 days, that will apply but if it states 60 days, then a longer notice period is required. Contact Keren Bobker at keren@holbornassets.com or at www.financialuae.com The advice provided in our columns does not constitute legal advice and is provided for information only

‘Can my bank charge a late payment fee for a one-week delay?’

The bank is within its rights to charge a penalty and that is likely to be automated