Employees’ say on salary transfer

I am working in a company for one-and-a-half years on a limited period contract, which expires in May 2019. Am I obliged by law, upon the expiry of my current employment contract, to renew the contract for a limited period? My employer said I have no choice — that I must renew my labour contract for a limited period, same as my previous contract and also with the same article and condition. With regard to the transfer of employees’ salaries to the bank, is the employee entitled to choose the bank where he wants the salary to be transferred? Is the employee obliged to pay the transfer charges or the same shall be borne by the employer? Does the employer have the right to file a absconder complaint in the Ministry of Labour against an employee who is on annual leave outside UAE and is absent for more than seven days?

Upon the expiry of his current limited contract, as per UAE Labour law he has the right to choose the type of contract he wishes to sign. Therefore, the questioner may seek another contract for unlimited period. As for the question on the salary transfer, as per the law, the employee is the one who shall choose the bank, to which he wants to transfer his salary. Finally as per the Ministry of Labour rules, the employer has no right to file absconder complaint against any employee who is on annual leave and is absent for more than seven days outside the UAE. ■

Partners’ gratuity

Does the labour law apply to a general manager who is also a partner in a company? Which court has jurisdiction regarding unpaid salary and gratuity? Federal Law No 8 of 1980 regulates labour relations in the UAE. Article No 1 of the mentioned law defines the employment contract as “Any Agreement, whether for a limited or for an unlimited period, concluded between an employer and an employee under which the latter undertakes to work in the service of the employer and under his management or control against a remuneration payable to him by the employer”.

Also Article No. 3 of the same law decided that the law applies to all employees and workers in the UAE including UAE nationals and expatriates.

Partners in a business are not considered “employees”, instead they are treated as “investors” in the business. However, if you hold an employee position, additional to your status as a manager, you will be considered as an ‘employee’ working in the company. If the intention of the parties is a business relationship, not labour, the Dubai Civil Court can handle the case, not the Labour Court.

So if you are partner in a business, your dispute regarding unpaid salaries as well end of service gratuity will be referred to the competent Civil Court; or to the Labour Court in case you have a labour contract. ■

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