KEEP THE WALLET IN YOUR POCKET

Cut your spending by 25 per cent and enjoy the benefits, says Nima Abu Wardeh,

I want to buy a house in Dubai and read that I can borrow 75 per cent of the purchase price, but my bank says it will only lend me 60 per cent of what I will pay, even though I have plenty of income. Do the banks not have to comply with the legal limits in this country? RH, Dubai

The Central Bank of the UAE made changes to the mortgage lending limits in 2013 so that for expats, the maximum loan to value for the first property purchased will be limited to 75 per cent of the purchase price up to a valuation of Dh5 million. For a purchase price above this level, the maximum loan to value will be 60 per cent. For all second properties the maximum loan will be limited to 60 per cent, regardless of value. I understand that RH is looking to buy a villa with a purchase price of Dh5.2m so will be limited to borrowing 60 per cent of the price paid. I suggest speaking to a specialist mortgage broker to look at all the mortgage options, as the rates vary between lenders.

I am a waiter in a five-star hotel in Dubai. I have been working there for 10 months. Now I have been offered a new job and want to leave the hotel that I’m working for, but according to the contract I have a two-month notice period. I want to ask if I can leave the hotel without notice as I am ready to pay them to do this. And what do I have to pay? Two months’ salary plus hiring fee and other fees? Or can they reject my resignation notice and force me to finish the two months of notice? And can they ban me from working elsewhere? DV, Sharjah DV has not confirmed the nature of his contract, so it will be assumed that it is unlimited. While UAE Labour Law refers to a minimum notice period of one month, if the contract of employment states that the notice period is two months and this is signed by both the employee and the employer, then that is enforceable and DV can be made to work the full notice period as agreed. An employer can agree to allow someone to leave employment sooner, although they are not obliged to, but they cannot enforce a penalty for someone on an unlimited contract. Employers are also not permitted to reclaim the cost of hiring an employee when they leave, nor can they refuse to accept a letter of resignation. The rules regarding employment bans changed in January of this year. Provided someone has completed six months of service and completed the agreed notice period, they will not receive a ban and will be free to take up another position.

I am an engineer and my education certificate is UAE embassy attested. I work in Dubai and am now in my initial six-month probation period. My visa is stamped as “maintenance mechanic general”. I would like to know about labour ban details if I leave my first employer and receive an offer from another company. VK, Dubai The rules regarding employment bans changed in January of this year under ministerial decree 766 of 2015. This states that there will be no bans for employees on unlimited contracts provided certain conditions are met. These conditions are a) there is mutual consent to end the employment if the employee has worked for six months, although this condition is waived completely for anyone who has an attested high school certificate or higher qualification; b) the person’s visa is under skill category 1,2 or 3; or c) the employee has worked for at least six months no matter their qualifications or skill category. In each case the appropriate period of notice should be provided and served. In this situation it appears that VK can change employment without receiving a ban provided the appropriate notice period is given and served.

I have heard conflicting information regarding the free zones in the UAE and whether employees are covered by the labour laws. Can you confirm how the rules apply? EB, Abu Dhabi In all cases a free zone must comply with the minimum statutory employment rights and obligations as set out in UAE Labour Law. Free zones are not exempt but are able to offer other rights and benefits as long at these are never to the detriment of any employee. One main difference is that the free zone itself is the sponsor (with a few exceptions) instead of the actual employer, as is the case with other onshore companies and this has meant that it is easier to change jobs within the same free zone. It has always been unusual for a free zone authority to apply to the Ministry of Labour for a work ban on an employee.