Latest news with #CivilTransactionsLaw
Gulf Today
24-04-2025
- Business
- Gulf Today
Dubai court obliges firm to pay Dhs5.2m outstanding amount to subcontractor
Dubai Commercial Court has ordered a contracting company to pay Dhs5.251 million to a subcontractor who had been contracted to construct a 103-storey residential tower, along with 6 basement levels and a ground floor in Dubai Marina. The company had initially refused to pay the outstanding amount after the project's completion. According to the case file, the subcontractor filed a lawsuit against the main contractor after signing a contract in 2015 to implement construction works for the project, valued at over Dhs19 million. The plaintiff affirmed that his company started the agreed-upon work but was later halted by the appellee company, which attributed the stoppage to the project owner. The plaintiff claimed the appellee owed Dhs17.9 million and sought court to compel payment, including legal interest. The court appointed a technical expert to review the case and documents, including the contract, final account statement, and other evidence. The expert determined that the actual amount owed to the plaintiff was Dhs5.251 million. In response, the appellee company argued that the lawsuit should be dismissed on the grounds that it was filed by a party without legal standing, claiming that the project's actual owner was also the owner of the plaintiff company and that the plaintiff owed the appellee outstanding payments. The appellee further argued that the lawsuit was premature, citing the principle of 'payment upon receipt.' Dr Alaa Nasr, the legal representative of the plaintiff company, countered that the claim of the lawsuit being filed by a party without legal standing was invalid. He cited Article 891 of the Civil Transactions Law, which states that a subcontractor cannot claim payments directly from the project owner unless explicitly authorised by the main contractor. However, Dr Nasr argued that a subcontractor can sue the project owner directly if he is originally a part to the main contract. The court ultimately ruled in favour of the plaintiff, ordering the appellee company to pay him the outstanding amount of Dhs5.251 million.
Hi Dubai
14-04-2025
- Business
- Hi Dubai
Severance Pay and Golden Handshakes in the UAE: What You Need to Know
Question: I am planning to move to the UAE this summer and have been exploring job opportunities. However, none of my potential employers have been willing to offer a severance package. I'd like to understand if there are any laws or regulations about this. Is it possible to include a "golden handshake" clause in my job contract? And if I do, will it be legally binding? Answer: If you're considering an employment offer from a company based in the UAE mainland, you'll be governed by the UAE's Employment Law, as well as the Civil Transactions Law. These legal frameworks protect employee rights, including those related to severance pay. According to Article 51(2) of the Federal Decree Law No. 33 of 2021, any employee who has completed at least one year of continuous service is entitled to severance pay upon the end of their employment. The severance pay is based on the employee's basic salary and is calculated as follows: 21 days of salary for each year of service during the first five years. for each year of service during the first five years. 30 days of salary for each year of service after the first five years. Additionally, Article 8 of the UAE Employment Law and Article 10(1) of Cabinet Resolution No. 1 of 2022 specify the regular terms and conditions that must be included in an employment contract. However, the standard contract template provided by the Ministry of Human Resources & Emiratisation (MoHRE) does not typically include a clause about severance pay. Despite this, you are still entitled to severance pay if you have completed at least one year of service with your employer, even if it is not explicitly mentioned in your contract. The UAE Employment Law guarantees employees this entitlement, regardless of whether the contract addresses it directly. Can a "Golden Handshake" Be Included in Your Contract? While the UAE's Employment Law lays out the minimum rights of employees, it does not restrict employers from offering more favorable terms. As per Article 65(1) of the UAE Employment Law, employers can provide benefits that go beyond the statutory minimum, including the possibility of a "golden handshake" clause. A "golden handshake" refers to a negotiated severance package that offers more generous compensation than the standard severance pay. If you wish to include this clause in your contract, you can discuss it with your prospective employer. If both parties agree, it can be incorporated into the contract and will be legally binding, as long as it complies with the UAE's legal framework on employment contracts, which mandates that contracts be executed in good faith and in line with the law. In summary, while the UAE Employment Law ensures that you are entitled to severance pay, it also allows for the inclusion of more favorable terms such as a "golden handshake." You should discuss this possibility with your employer, who may agree to include it in your employment contract. If you have any concerns, it's always advisable to consult with a legal professional familiar with UAE employment laws to ensure your rights are fully protected. Applicable Laws: Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationships Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates News Source: Khaleej Times
Khaleej Times
13-04-2025
- Business
- Khaleej Times
UAE: Can employees ask for a severance package in their job contract?
Question: I am planning to move to the UAE this summer and have been exploring job opportunities. However, none of my potential employers I've spoken to were willing to offer a severance package. I'd like to understand if there are any laws or regulations about this. Is it possible to include a "golden handshake" clause in my job contract? And if I do, will it be legally binding? Answer: It is assumed that you are considering an employment offer from a company based in the UAE mainland. In that case, the UAE Employment Law, along with related cabinet resolutions and the Civil Transactions Law, would apply to your situation. In the UAE, an employee who has completed at least one year of continuous service is entitled to severance pay at the end of his or her service with an employer. The severance pay of an employee is calculated on his or her basic salary. This is in accordance with the Article 51(2) of the Federal Decree Law no. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments ('UAE Employment Law'), which states: 'The full-time foreign employee, who completed a year or more in continuous service, shall be entitled to end-of-service benefits at the end of his service, calculated according to the basic salary as per the following: a. A salary of (21) twenty-one days for each year of the first five years of service; b. A salary of (30) thirty days for each year exceeding such period.' Further, the Article 8 of the UAE Employment Law read with Article 10 (1) of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the 'Cabinet Resolution No. 1 of 2022'), states the regular terms and conditions which needs to be included in an employment contract of an employee. In the UAE, the parties to any contract are legally bound to carry out their respective obligations as stated in the contract, and to do so honestly, fairly, and in good faith. This is in accordance with accordance with Article 246 (1) of the Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates, which states: '1. The contract shall be implemented, according to the provisions contained therein and, in a manner, consistent with the requirements of good faith.' Generally, in the UAE, the Ministry of Human Resources & Emiritisation (Mohre) template of the employment offer letter and contract does not contain clause related to severance pay. However, you may request your prospective employer to include the same. If your prospective employer does not agree to include details about severance pay in your employment offer letter, or if the offer letter and employment contract do not mention it, you will still be entitled to receive severance pay when your employment ends, as long as you have completed at least one year of service with the company. As an employee, you are entitled to all the benefits outlined in the UAE Employment Law and its related cabinet resolutions, including severance pay as specified in Article 51(2) of the UAE Employment Law. Additionally, while the UAE Employment Law ensures the protection of employee rights, it does not restrict employers from offering more favourable terms. This is in line with Article 65 (1) of the Employment Law, which states: 'Rights laid down in this decree-law shall consist the minimum employees' rights. The provisions of this Decree-Law shall not prejudice any of the rights prescribed for employees under any other legislation, agreement, declaration, regulation or employment contract, giving rise to rights that are more beneficial than those laid down in the provisions of this Decree-Law.' If you're considering including a 'golden handshake' clause in your employment contract, you can discuss this with your prospective employer and mutually agree to add it to the contract. Applicable laws: 1. Federal Decree Law no. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments 2. Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations 3. Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates
Saudi Gazette
12-04-2025
- Politics
- Saudi Gazette
Lawyer faces probe for publishing misleading information in media
Saudi Gazette report RIYADH — The Ministry of Justice has instructed to carry out investigation into the case of publishing misleading information in the media by a licensed lawyer about the penalty for parking in front of homes. The ministry clarified that it noticed that the contents of the statement made by the lawyer are not based on any legal basis. Article 5 of the Law of the Protection of Public Facilities —referred to in the statement — is irrelevant to the allegations. The Civil Transactions Law regulates provisions related to rights, including the right of easements. The ministry confirmed that it will take legal action against the lawyer and refer him to the concerned agencies for investigation, based on the Code of Law Practice, its executive regulations, and the Rules of Professional Conduct for Lawyers. The ministry called on all lawyers to adhere to the rules and regulations governing the profession. The ministry reiterated that it will not show any leniency in taking the necessary measures to control any practices or behaviors that violate the relevant rules and regulations
Zawya
24-02-2025
- Politics
- Zawya
Saudi Arabia implements new personal status regulations
RIYADH — Saudi Arabia has officially implemented the Personal Status Regulations following the approval of Crown Prince and Prime Minister Mohammed bin Salman. The regulations, consisting of 41 articles, took effect on Friday, marking a significant step in enhancing the legal framework governing family affairs. The regulations authorize the Minister of Justice to establish the necessary procedures for hearing cases related to marriage contracts conducted without prior approval from the relevant authorities. This process will be coordinated with the concerned entities, and additional regulations may be introduced as needed based on judicial applications and evolving legal requirements. The regulations mandate that marriage contracts between non-Muslims be officially documented, whether the couple shares the same nationality or not. The new framework ensures that a wife's right to request marriage annulment due to a condition in the husband that prevents marital relations is not waived simply because she did not immediately pursue legal action. Additionally, privacy between spouses is considered compromised if an observer who can distinguish relationships is present. The law also upholds the mother's right to child custody if the child is under two years old, even if she remarries a man unrelated to the child. The Saudi Cabinet first approved the Personal Status Law in March 2022, with Crown Prince Mohammed bin Salman emphasizing that the legislation is derived from Islamic principles and aligned with international best practices. The legislation sets the legal age of marriage at 18, reinforces a woman's right to financial support from her husband, and grants her the ability to request a marriage annulment based on specific circumstances. The Personal Status Law is part of a broader legal reform initiative announced by the Crown Prince in February 2021. This initiative includes four key legal frameworks: Personal Status Law, Civil Transactions Law, Penal Code for Discretionary Sanctions, and Law of Evidence. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
