Gulf News

Ask the law

- Mohammad Ebrahim Al Shaiba

The questioner should approach the Execution Court and apply for enforcemen­t of the judgement. The court will serve a notice on the employer seeking payment within 15 days from the date of notice. As a means to execute a judgement, the court has the power to take measures, including ordering the attaching bank accounts, shares, stocks and bonds as well as any assets that the employer may have in the UAE. However, this process may take months to conclude.

In a bid to address non-compliance with court verdicts, the Ministry of Human Resources and Emiratisat­ion has introduced added sanctions against any UAE employer failing to pay dues to an employee within the 15-day deadline.

Ministeria­l Resolution No 797 of 2014, which has been in effect since October 1, 2014, empowers the ministry to suspend the business licence of an entity for non-compliance with the court order, or delay in payment of dues. This procedure will apply when the execution judge issues a notice.

Moreover, the resolution can also have a wider applicatio­n by not only imposing sanctions on the employer but also to a wider group of associated entities. Individual owners and partners of the defaulting entity may find that the other entities, of which they hold a vested interest, can also be subjected to sanctions. The ministry has announced that an employer must be given two advance warnings of the proposed suspension, although the method or manner of communicat­ion is not clear or routinely followed. The newly imposed sanction will remain in effect until the Execution Court receives payment of the amount mentioned in the judgement in full (inclusive of accrued interest, court fees etc) and the court can ask the ministry to extend the suspension.

Increasing­ly, more and more disgruntle­d employees are taking advantage of this resolution and are approachin­g the Execution Court to seek enforcemen­t of judgements and following it up with filing an urgent applicatio­n to suspend the employer’s licence.

The Execution Court does not hesitate to suspend the business licence of a noncomplia­nt employer and we have noted that licence suspension is becoming the norm and may be applied even without the requisite two advance warnings.

In addition to the threat of an attachment order and a visit by court bailiffs, the new resolution warns all UAE entities and employers about the importance of prompt payment of amounts stipulated in judgements within the 15-day deadline from the date of notificati­on to ensure business operations are not brought to a sudden halt.

At the same time, Article 4 of Federal Law No 8 of 1980 is very clear that the questioner should have the priority based on the verdict.

Midday break compliance

I work in a contractin­g company. In June last year, my company did not comply with the midday break regulation issued by the Ministry of Human Resources and Emiratisat­ion for summer months. I would like to know from which month the midday break decision is applicable and till what time? Can my company force us to work during the break period?

Pursuant to the ministry’s decision issued in 2005 concerning the prohibitio­n of work during midday, it shall be in force from June 15 to September 15 and from 12.30pm to 3pm. I would advise the questioner to report to the ministry in case the company forces them to work during this period. The companies will face penalties if they breach the decision. ■

■ Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultant­s.

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