Can I sue insurance firm if it fails to honour loan cover pact?
I had taken a bank loan and the bank had made me sign a blank cheque against that loan. Recently, my company terminated my service citing my failure to meet the monthly target of Dh1 million worth of business. My loan is insured with one of the insurance companies. I have been paying monthly premiums to the insurance company and the insurance document states that in case I lose my job, the company will pay my loan instalments till I find a new job. I submitted all documents, including the insurance document, to the bank and asked for time to pay the due instalments after I find a new job. I also informed the bank that it can claim the monthly instalments till then from the insurance company. However, the bank insists that I should continue paying the monthly instalments. I received a notice from the bank stating that it would submit my guarantee cheque to the police and file a criminal case as I have not paid the instalments for two months. What can I do? Does the bank have the right to do so even when it knows that I have been fired from my job arbitrarily? Do I have the right to file a case against the insurance company in case it fails to support me as agreed? The questioner has no choice but to settle this matter amicably with the bank. Otherwise, the bank has the right as per the law to follow all legal means to get back the loan amount. The questioner is advised to contact the insurance company and ask the company to pay his monthly loan instalments as agreed on and stated in the insurance agreement. If it doesn’t, the questioner has the right to file a civil case against the insurance company in this regard.
Downgrading illegal
I am a woman who has been working as a supervisor in a private school for more than two years. A month ago, I received a letter from the school administration asking me to work permanently as a teacher but I replied that I could not as I am not a professional to do the teaching job as per my employment contract. However, the administration said that if I refused and disobeyed its orders, I might be dismissed in accordance with the Labour Law. Therefore, I submitted my resignation and stopped working. Is the school administration acting in accordance with the Labour Law? Should I file a labour complaint immediately against the school? They are also not ready to pay my end-of-service dues stating that they are going to apply Article 120 of the UAE Labour Law. Does the employer have the right to apply Article 120 in my case? Does the employer have the right to downgrade the employee to a lower position with reduced salary without the consent of the employee? Please advise.
As per the Dubai Court of Cassation, downgrading the employee to a lower job position by the employer is considered an arbitrary dismissal and the submission of resignation by the employee in this case is an expression of her disagreement to such downgrade. The employer, in such cases, is in breach of his obligations towards the employee, which entitles the employee to quit work with her right to obtain all dues along with compensation for the arbitrary dismissal.
Therefore, I would advise the questioner to file a labour complaint against the school if she fails to reach an amicable settlement with the school. As per the UAE Labour Law, Article 120 is not applicable to the questioner’s case as mentioned by the employer.
Questions are answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.