GET LEGAL ADVICE ON HOW EMPLOYERS SETTLES EMPLOYEES FINAL SETTLEMENT

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Visa cancellation and final settlement

LEGAL ADVICE

I retired as a project supervisor from a contracting company last week, and my employer insists on paying my final dues through wire transfer to my Indian account next month. They are pressuring me to sign the document canceling my visa. How can I obtain a legally binding statement from my employer that would hold them accountable if they do not follow through on their promises? My daughter is getting married, thus I need to travel to India.

We think you worked for a mainland company in the UAE. As a result, the provisions of Federal Law No. (8) of 1980 regulating employment relations in the United Arab Emirates (the ‘Employment Law’) and Ministerial Resolution No. (724) of 2006 on administrative termination of sponsorship (the ‘Ministerial Resolution No. 724 of 2006’) apply.

Your employer is responsible for settling your end-of-service benefits prior to or at the time you sign the work permit cancellation paperwork. Before signing the work permit cancellation document, you can ask your employer to settle all of your end-of-service perks.

The employer must also follow the Wage Protection System (the ‘WPS’) and provide proof of payments to its employees relating to end-of-service benefits through the WPS to the Ministry of Human Resources and Emiratisation (the ‘Mohre’). End-of-service entitlements are sent to the employee’s registered bank account in the UAE or placed with an approved exchange house where the employer has registered the WPS, where the employee can withdraw the funds.

Your employer may only send your end-of-service rewards to your bank account in the UAE that is registered with WPS for salary payment. As a result, before signing a paperwork confirming receipt of all your dues, you may ask your employer to transfer your end-of-service rewards to your UAE bank account.

If you do not sign the work permit cancellation paperwork and disagree with your employer’s demands regarding payment of benefits, your company may ask the Mohre to revoke your work permit without your signature. The Mohre might alert you in this situation for their business.

This is in conformity with Ministerial Resolution No. 724 of 2006, Article 1(b) (3), which states: “If the employee fails to submit a cancellation application, the sponsorship will not be terminated. He will be given a week to present himself for the notice date to listen to his debts. If he fails to appear, his dues will be computed using the most recent date available from the competent labor directorate, and his sponsorship will be terminated without the need to hear him, preserving his right to everything owed to him and ensuring that he receives the dues.”

However, if your case is brought to the Mohre, the employer may settle your debts before the ministry under the aforementioned clause of law. If you and your employer cannot reach an agreement, the Mohra may issue a letter to both of you, allowing you to bring an employment case in court.

If you opt to sign the work permit cancellation document without getting your dues, you should get a letter from your employer stating that they would pay your dues in your Indian bank account.

However, if your employer fails to deposit your end-of-service rewards into your Indian bank account, you may not be able to file an employment lawsuit against them because the topic is outside of Mohre’s jurisdiction. As a result, you may need to initiate a legal lawsuit against your employer with the appropriate court.

Understand the law.

If an employee does not sign the work permit cancellation paperwork and does not agree with the employer’s stipulations regarding payment of end-of-service benefits, the employer may approach the Mohre to cancel the employee’s work permit without his signature.

Get more information about Visa Cancellation and final Settlement.

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