‘My employer cancelled my contract and refused to pay my rent. Can I sue?’ ON YOUR SIDE
Q My company terminated my one-year contract after 10 months and did not repatriate me for four months. They also refused to pay my rent and bills. Do I have a case against them in court? My contract stated that they are supposed to pay my rent, but they only paid until the month of termination. Now, they have agreed to pay for my flight ticket but are not willing to reimburse my accommodation costs. FD, Dubai A There are a number of issues to be considered here. As the employer broke the terms of the fixed-term contract, they are liable to pay a penalty to the employee. This is in accordance with Article 115 of the UAE Labour Law. This means that FD is entitled to compensation as the contract was terminated with two months left.
It is my understanding that a housing allowance was paid, rather than accommodation being provided. Ordinarily, this would form part of the salary package and would cease upon termination of the contract. However, things are different this year after the issue of Ministerial Resolution 279 in March to help businesses deal with the financial effects of Covid-19.
The resolution set out legal steps for employers to reduce salaries or terminate employment, and also put in place protections for employees. Article 3 of the legislation made it clear that employers would remain liable for housing costs and other entitlements, except for the basic salary, for employees who were made redundant until they could leave the UAE, join another company or such measures are revoked.
The employer is liable for the repatriation costs of an employee whose contract has been terminated, if the employee wishes to return to their home country. This is covered in Article 131 of the UAE Labour Law.
This is being paid but it appears that the employer owes money to cover the employee’s rent expenses for a period of time and compensation for early termination. I am aware that the courts have been supportive in similar cases but I would not expect the employer to be liable for utilities or other bills. In this situation, FD can file a case against the employer with the Ministry of Human Resources and Emiratisation.
Does a blog or writing on cooking and lifestyle subjects need any form of business licensing? While an e-commerce licence is clearly required for those who sell products on their blogs, is this required if you make money only by linking to adverts?
Should I seek an influencer licence? I have been thinking of starting a blog but want to be clear about the licence procedures. FS, Abu Dhabi
To conduct any type of business activity, a licence is required in the UAE. While no licence is required to write a blog, it is worth noting that as soon as any money is made, it becomes a business activity. The rules in relation to blogging and running websites were tightened in 2018. The National Media Council has made it clear that everyone needs to be properly licensed for all types of business.
The regulations require anyone conducting any commercial activity through social media to register for an e-media licence, as well as have a suitable trade licence. The rules apply to anyone who is paid for endorsements. This is a broad term, but it applies to all hosted adverts and posts. The regulation applies where money changes hands or a payment is made. Since most blogs and social media accounts are a hobby with no monetary gain, no licence is required.
I advise anyone who intends to make money from a blog, social media account or website to seek advice from a business licensing company.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE. The advice provided in our columns does not constitute legal advice and is provided for information only