'I've a job contract and a visa, but I've still not started work'

Question: I received an offer letter from a company in December and a visa in January. The unusual thing is that I still have not started work for them. That means I have not received any salary. When I ask when I can start working, they just say it will begin soon.

I am lucky as I am living with my family, so my costs are low but I can’t take up another job and feel very stuck. Is there anything I can do about this situation? MC, Dubai

Answer: This is unusual for a company to arrange a visa and work permit but then not expect someone to start working. The fact is that as MC has a contract of employment, a residence visa and a work permit, she is legally considered to be an employee of this company. That means she must be paid her salary. Payment is due from the date she was supposed to start work.

This is the same as a company just not paying their employees, so it is against the law.

This is a private company, so MC can register a formal complaint with the Ministry of Human Resources and Emiratisation. There are several ways to do this: through the website, the app, by telephone or WhatsApp on 600 590000.

Q: My family and I are leaving the UAE and I have a question about our visas. These are normal work visas. My husband sponsors me and the children. I understand that he has to cancel our visas before his employer cancels his. This is planned for June.

We have agreed that he will leave before us as he has a new job to go to. My worry is that this will affect the time we can stay in the UAE. I read that we have a 30-day grace period, but will this change if he leaves before us? HM, Ras Al Khaimah

A: HM is correct in that once a residency visa is cancelled, there is a 30-day grace period before a person needs to leave the country or obtain a new visa. This is not affected by the former sponsor or where they are during this period.

As her husband sponsored her and the children, he must cancel their visas before his own can be cancelled by his employer but that can be done the day before for maximum flexibility.

HM plans to remain in the UAE with her children until the end of the school term before leaving and there is no issue with doing this.

She may wish to be aware that if she exceeds the grace period, there will be fines for each additional day and these are Dh50 per person, per day.

Q: I work for a company in Jeddah and have been here for three years. We have heard that the company is being sold but that the new owner will run the business as usual. However, the staff are worried. Our boss is nice but has decided to retire and we would like to know if we have any legal rights after the change of ownership. KH, Saudi Arabia

A: It is understandable to have concerns in this situation, but KH and his fellow employees are protected under the Saudi labour law.

Article 18 of the law states: “If the ownership of a firm is transferred to a new owner or a change takes place in its legal form through merger, partition, or otherwise, employment contracts shall remain in force in both cases and service shall be deemed continuous. As for workers’ rights accrued for the period prior to the change, such as wages or unrealised end-of-service awards on the date of the transfer of ownership and other rights, the predecessor and the successor shall be jointly and severally liable.”

This confirms that the situation should essentially be business as usual and that employees have continuous employment, with all terms unchanged.

In reality, a new owner is likely to run a company a little differently and the existing employees have the option to leave. They simply have to let the new employer know that they wish to leave and their employment will end. All payments that are due must be paid to them in full.

This is confirmed in the Saudi labour law. “However, in the case of transfer of ownership of individual firms, for any reason, the predecessor and the successor may agree to transfer all the previous rights of the worker to the new owner subject to the written consent of the worker. If the worker disapproves, he may request the termination of his contract and collect his dues from the predecessor.”

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