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Nation Home > Legal View
Fine if absconding report is cancelled

Mushtaq Ahmad Jan (Legal View) / 7 May 2012

I run a hardware company in Dubai. One of my employees has not reported to work for the last two months. I filed an absconding report against him with the labour and immigration departments. Some days back, the employee contacted us and asked our help for him to travel back home. Please, advise.

It is possible for him to travel if you provide in writing that either there was an error in the absconding report or that it was false. However, it has to be noted that there might be a fine of Dh10,000 imposed upon your company. As general rule, there are two situations where the absconding report may be cancelled either by an employer or by employee:

By employer: An employer may cancel an absconding report if he gives an approval that there was an error in the absconding report. For example, the name included was wrong or the employee was hospitalised or was imprisoned and was consequently absent from work without information. 

By employee: An employee may cancel an absconding report if he can prove his presence at work while he was reported absconding, or has a valid proof for his confinement to the hospital or jail during that period.

Furthermore, if an employer submits the report, he has to provide the authorised signature keeping in view that the following fine may be imposed in case of fake or conspired absconding report:

1)   Dh10,000 fine in case of fake report

2)   Companies of the owners and all other firms with partners will be blocked unless he pays Dh10,000

3)   Bank guarantee amount will not be refunded by Ministry of Labour

4)   The category of the company will be changed to C.

However, in case of false report, if there is proof that the employee had not been working in the company for the last three months or more and instead was working with another company holding the visa of the old company, the employee may be given a one-year ban even if the report is cancelled. In case it is established that the institution/company from which the employee was reported absconding is nonexistent, then, the absconding report will not be cancelled. In such an event, the employer will be fined Dh10,000 and all his firms will be blacklisted.

Loan to friend

I lent Dh30,000 to one of my friends. Half of it was transferred online using a local bank account and the rest was paid in cash. I was told that it would be returned in a week’s time. More than a year has passed but I have not got back the money. I tried calling him but he doesn’t reply. I have e-mails and SMSs from this person, supporting my case. What should I do?

The online transfer proves that you have handed over the money to him. Furthermore, if the e-mail correspondences exchanged between you and your friend sufficiently cover the basic elements of a valid contract as mentioned in Article 129 of the Civil Transactions Law, Federal Law No 5 of 1985 (the Civil Code), then you have a binding and enforceable loan contract. Article 129 of the Civil Transactions Law, Federal Law No 5 of 1985 (the Civil Code) describes the basic element of a contract as under:  “The following necessary elements for conclusion of a contract:

a)   Both parties to the contract shall mutually agree to the basic elements

b)   The subject of a contract must be something possible determined or determinable and permissible to deal with

c)   Obligations arising from a contract shall be legally justified.” Your friend, failing to return the paid amount to you, as per his promise, has thus defaulted the loan agreement. Therefore, it is your right to file a civil case in the court against your friend under Article 272 of the UAE Civil Code for the recovery of the paid amount.


Joined a competitor

My previous employer has put up a case against me in the Dubai court saying I have joined his competitor company. I will have to pay Dh50,000 though my current company is not his competitor. They are dealing in totally in different products. How may I defend myself since I can’t afford hiring a lawyer?

It is not necessary to hire a lawyer. You can depend on yourself in court. You have to deny all the charges as the burden of proof lies up on the claiming party. Since, your previous employer is claiming that you have joined a competitor, he must prove in the court that your current employer is the competitor.  Furthermore, you can submit a copy of the licence of your current company and the product you are dealing in.  Please note that you must appear before the court and deny the charges. Otherwise, if you do not deny the charges, as per law, the court has to give judgement on the basis of claim of your previous employer.

Own business

I work in a private company in Dubai. Is it possible to start my own business? I would like to start an LLC, under the company I currently work for on the basis of 49-51 partnership with a UAE local.

Yes, you can start your own business in your own name. However, you have to obtain a no objection letter from the company stating that the company does not have any objection to you owning shares in any company including this one. One of the requirements for establishing an LLC or becoming a shareholder in an LLC or becoming a director of an LLC is to obtain a no-objection letter from the applicant’s current sponsor for non-GCC nationals. Since, your current employer is the LLC, you will need an NOC from the same company to become shareholder in the company.

Compiled by Ahmed Shaaban


Mushtaq Ahmad Jan is a lawyer at the Global Advocates and Legal Consultants, with a Master’s Degree in international commercial law, University of Hull, Kingston-upon-Hull, England. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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