Category Archives: Latest News

Think Before Spreading Rumours About Corona Virus In UAE

On the basis of the International Health Regulations, all signatory countries are responsible for co-operating and supporting each other by share legit information regarding the virus. Although, there are reports of recovery from this virus, it is essential to protect oneself as it can be potentially fatal to your health.

The Wuhan-nCov is a sort of coronavirus which is a particular kind of viral contamination normally causes sicknesses in mammals or birds. Coronavirus in creatures influences an assortment of species, including bats, snakes, steers, camels and cats, sometimes. Nevertheless, when the infection transforms it can and infects people as well. Coronavirus diseases normally lead to respiratory contaminations, which can demonstrate conceivably lethal.

The 2019 Wuhan coronavirus is infectious. It spreads through human transmission and represents a potential general wellbeing hazard in nations where the malady has been recognized. While coronavirus transmission relies upon various elements, including infection transformation and the individuals immunity, it can demonstrate terminal. The infection, when contracted, can cause genuine lower respiratory tract sickness, bronchitis and pneumonia.

Based on reports all around the world, it is established that detecting the virus in any humans body from its symptoms is difficult as the symptoms are closely similar to a normal cold and flu. Similar symptoms are cough, fever, sore throat, headaches and body pain or in some cases respiratory issues and diarrhoea.

Virus Out-Break in UAE

It was later confirmed by the UAE Government, the out-break of Coronavirus in the world and governments constant efforts to liaise with the Chinese government to prevent further unfurl of this virus. In the presence of this rampant virus, the government of UAE and UAEs Health Authority has used several precautionary measures to deal with the virus as follows:

Spreading awareness on the air gateways especially from flights coming from China

Preventing patients suffering from Coronavirus to leave hospital premises at any given point in time, this is strictly directed by the Ministry of Health and Health Authority of each respective Emirate.

Screening of all individuals coming from other countries to Dubai or Abu Dhabi airport and especially for individuals coming from China.

Undertaking potential test and treatment protocols to comprehend potential risks of Corona Virus and providing immediate treatment for patients suffering from the same.

Flights to and from China or Beijing has been suspended until the end of March 2020.

To instruct all hospitals to take Coronavirus patients as emergency cases and to treat them free of cost, in case they dont have health insurances.

It is has been confirmed by the Ministry of Health that around 8 cases have been registered of Coronavirus and the number might change when you get to read this article. The afore-mentioned precautions are approved by the World Health Organization to prevent further spreading of this disease.

Spreading Rumors

Whilst the government is supporting the patients suffering from the virus and preventing further turmoil, it is ordered by the government to all the individuals residing within the country to spread fake rumours about coronavirus. Wherein, rumours include providing misleading information or circulating unverified information.

Free Web Content

Importantly pursuant to the Cybercrime Law (Federal Law Number 5 of 2012) any rumour, fake information or misleading videos spread by any resident of UAE shall face legal consequences in the country. It is very pertinent to not have a laid back approach on this topic, although it is not an epidemic, yet it is necessary to avoid this disease and act accordingly.

Tips on new Foreign Direct Investment Law

Lawyers of Dubai believe that the right step in a positive direction to enhance UAE’s economy in the international market. The introduction of 100% ownership in several business sectors for on-shore entities is a significant decision to stride towards positioning UAE as the hub for international investors.

Understanding the Law

According to Article 6 of the Law, the Cabinet of UAE will establish a Foreign Direct Investment Committee (FDI Committee) who will draft a list of areas wherein the Cabinet can approve a higher level of FDI. Subsequently, the Committee shall consider the following notable points prior to elucidating the areas:

  • Profit maximization to the UAE economy;
  • Enhancing job opportunities;
  • Investors; competency requirements;
  • Strategic planning;
  • Optimal usage of modern technology;
  • Prerequisites for a foreign investor to claim a higher level of ownership;
  • Capital requirements;
  • Minimum shareholding of UAE nationals.

Nonetheless, the freedom of 100% ownership or high level of shareholding will not be granted to foreigners in certain restricted sectors which forms the part of the negative list as follows:

  • Banking sectors;
  • Insurance service providers;
  • Oil and gas exploration or production;
  • Specific recruitment sectors;
  • Transportation by land or air;
  • Military, investigation or security;
  • Printing or publishing;
  • Agencies;
  • Services for pilgrimage;
  • Water and electricity.

How to apply?

The Law under Article 10 provides for the procedures and guidelines needs to be followed to apply for increasing the foreign ownership under the permitted sectors. Upon submitting the application offered by the authority, the committee shall review the same within 5 working days from the date of submission. If approved, the Department of Economic Development will issue the appropriate license and will record the application in the FDI registry. However, if rejected, the applicant has the authority to raise an objection before dispute resolution established by the FDI Committee.

Activities not in the List

Another significant provision in the Law is for the activities which are not mentioned in the list. Any prospective FDI project is not mentioned in the positive list, the applicant may submit an application post receiving the support of Local government, to the FDI Committee and Ministry of Economy.

Remarks

The wave of significant amendments and introduction of New Law is plausible to increase foreign direct investment within the UAE considering the forthcoming expo 2020. The possibility of holding 100% ownership within UAE mainland companies will increase the number of on-shore companies and will remove the primary backdrop of ownership in onshore companies. The new Law is in harmony with the UAE Companies Law. Moreover, it is a step further sets out the legalities of higher ownership. UAE’s FDI is advancing to cultivate a progressively favourable environment which entices international investors and the new FDI Law further portrays the effort of the UAE government to strive towards the goal of enhancing economic position. Law No. 19 of 2018 will support speculator certainty and thus allure FDI development in specific divisions explicitly focused on.

Are you aware of New Electronic Arrests In UAE?

The concerned Law is in line with the new Penal Code of UAE (Federal Decree-Law number 17 of 2018 amending Federal Law number 35 of 1992) allowing for confinement of accused in a specific area that is either his place of residence or other space authorized by the criminal court. The Criminal Lawyers of Dubai will thus, enlighten the readers regarding the nitty-gritty of the Law for a better understanding.

According to Article 1 of the Law, the public prosecutor or the criminal court has the authority to offer this other electronic detention to prisoners against whom a final judgment has been issued or any accused in a criminal matter whose hearing has been adjourned by the court. The electronic device or transmitter will provide information concerning the whereabouts of the concerned accused and will notify the authority if the accused move out of the permissible territory limits. To be more precise, the Law allows the Public prosecutor or criminal court to offer electronic detention under three circumstances as follows:

  1. In matters of temporary arrest, the court instead of ordering provisional arrest may order for automatic detention;
  2. In other cases, the court may at its discretion order for such electronic monitoring;
  3. In cases where the accused has finished half period of his detention according to judgment, the court may allow him to finish his further arrest through electronic monitoring.

In addition, the Law allows different ways to the Ministry of Interior to monitor the whereabouts of the accused through transmitter and Ministry can utilize different procedures and application to supervise his movement such as GPS or by inputting directions of his house as according to Article 3 of the Law. Accordingly, the Ministry of Interior is responsible for establishing a database containing all relevant information about the accused’s movement at a federal or state level.

The Law further confirms the different qualities of the electronic device under Article 5 as follows:

  1. The method is not at all harmful for the accused;
  2. Emirates Authority has certified it for Standardization and Metrology;
  3. It will not restrict the accused from performing his regular duties;
  4. Will ensure his privacy at all times;
  5. It guarantees the confidentiality of the data or any information of the accused.

Another significant provision of the Law is Article 10 highlighting the duties of the accused under electronic detention which are as follows:

  1. The accused is not allowed to remove the transmitter without prior permission of the public prosecutor;
  2. He/she must immediately report the federal prosecutor through the Ministry of Interior for any amendments in his accommodation or job change;
  3. The prisoner must update the public prosecutor through the Ministry of Interior if he/she wishes to visit another house for more than 15 days;
  4. He/she must at all times respect the orders of the public prosecutor;
  5. He or she must appear before the federal prosecutor whenever called for;
  6. The accused shall not cause any damage to the machine;
  7. The accused has no right to travel outside the country unless authorized by the court, and if he is, he shall inform the public prosecutor once he is back in the country.
Find Article

It is pertinent to note that should the accused fails to obey the orders of the Public prosecutor or the criminal court, the Ministry of Interior will draft a report on the accused, and the public prosecutor shall take relevant actions on the accused.

Can a child be held criminally liable?

The concerned Law is in line with the new Penal Code of UAE (Federal Decree-Law number 17 of 2018 amending Federal Law number 35 of 1992) allowing for confinement of accused in a specific area that is either his place of residence or other space authorized by the criminal court. The Criminal Lawyers of Dubai will thus, enlighten the readers regarding the nitty-gritty of the Law for a better understanding.

According to Article 1 of the Law, the public prosecutor or the criminal court has the authority to offer this other electronic detention to prisoners against whom a final judgment has been issued or any accused in a criminal matter whose hearing has been adjourned by the court. The electronic device or transmitter will provide information concerning the whereabouts of the concerned accused and will notify the authority if the accused move out of the permissible territory limits. To be more precise, the Law allows the Public prosecutor or criminal court to offer electronic detention under three circumstances as follows:

  1. In matters of temporary arrest, the court instead of ordering provisional arrest may order for automatic detention;
  2. In other cases, the court may at its discretion order for such electronic monitoring;
  3. In cases where the accused has finished half period of his detention according to judgment, the court may allow him to finish his further arrest through electronic monitoring.

In addition, the Law allows different ways to the Ministry of Interior to monitor the whereabouts of the accused through transmitter and Ministry can utilize different procedures and application to supervise his movement such as GPS or by inputting directions of his house as according to Article 3 of the Law. Accordingly, the Ministry of Interior is responsible for establishing a database containing all relevant information about the accused’s movement at a federal or state level.

The Law further confirms the different qualities of the electronic device under Article 5 as follows:

  1. The method is not at all harmful for the accused;
  2. Emirates Authority has certified it for Standardization and Metrology;
  3. It will not restrict the accused from performing his regular duties;
  4. Will ensure his privacy at all times;
  5. It guarantees the confidentiality of the data or any information of the accused.

Another significant provision of the Law is Article 10 highlighting the duties of the accused under electronic detention which are as follows:

  1. The accused is not allowed to remove the transmitter without prior permission of the public prosecutor;
  2. He/she must immediately report the federal prosecutor through the Ministry of Interior for any amendments in his accommodation or job change;
  3. The prisoner must update the public prosecutor through the Ministry of Interior if he/she wishes to visit another house for more than 15 days;
  4. He/she must at all times respect the orders of the public prosecutor;
  5. He or she must appear before the federal prosecutor whenever called for;
  6. The accused shall not cause any damage to the machine;
  7. The accused has no right to travel outside the country unless authorized by the court, and if he is, he shall inform the public prosecutor once he is back in the country.
Article Search

It is pertinent to note that should the accused fails to obey the orders of the Public prosecutor or the criminal court, the Ministry of Interior will draft a report on the accused, and the public prosecutor shall take relevant actions on the accused.

How do legal consultants in Dubai see cryptocurrency?

Financial consultants, bankers and investors usually fail to understand the true concept behind investment in cryptocurrency, and yet we cannot blame them for unsolicited information available through varied platforms.

Thus, Corporate Lawyers of Dubai will walk you through the whole path of cryptocurrency from its emergence until now.

The term Bitcoin, Cryptocurrency and blockchain were peculiar for the world until Satoshi Nakamoto an unrecognized inventor of Bitcoin announced in late 2008 about Electronic Cash System. The concept flooded in world’s market like rapid fire and investors around the globe built a crypt currency market for buying and selling. UAE was also unknown and unfamiliar to this concept until the tides of elevated profit hit the market as compared to the current picture where world’s first cryptocurrency deep “cold storage” entities are established and functioning in UAE.

The Definition

It is an innovation and a virtual currency that uses cryptography, a procedure to convert legitimate information into an unbreakable code in order to track buyers and sellers. The need for such secure communication arose and evolved in the digital era with the aid of a secure online platform. This currency is operated by way of blockchain technology in contrast with fiat currency where one authority such as central bank regulates the currency. Cryptocurrency seeks their validation from a decentralized system wherein an investor participating in the process can seek verification. Particularly, Nakamoto benefitted the process of blockchain technology and created the infamous Bitcoin.

Laws of UAE regulating Cryptocurrency

FSRA-ADGM (Financial Services Regulatory Authority of Abu Dhabi Global Market) was the first in line to issues guidelines and regulations in relation to activities of buying and selling Cryptocurrency. The guidelines were regarding the regulation of Initial Coin Offerings (ICO) and virtual currencies wherein, the public at large can purchase and sell Cryptocurrency. FSRA-ADGM will determine the specific commodity on the case to case basis. The objective of ADGM regulations if to increase transparency and to restrict money-laundering activities and to combat financial terrorism.

Inspired by ADGM regulations, DMCC (Dubai Multi Commodity Authority) has provided an opportunity for investors to incorporate a business of trading in Cryptocurrency. However, companies would only be allowed to trade on their own behalf. Accordingly, such companies can establish the world’s first Cryptocurrency deep “cold storage” cellar.

In an offer to become a pioneer in blockchain innovation, the UAE has propelled the UAE Blockchain Strategy 2021, as per which half of the government exchanges will be directed utilizing blockchain innovation by 2021. To consolidate its vision, rules and regulations on the utilization of crypto resources, including cryptographic forms of money, have recently been issued.

Prior to the issuance of ADGM regulations, the Central Bank of UAE in 2017 promulgates a regulatory framework regarding the Electronic Payment System entailing all virtual currencies and transactions being restricted, setting a high alarm in UAE market. However, post receiving an unsatisfactory review, the governor of Central Bank clarified that the regulations would not be applicable to Cryptocurrency. In spite of this confirmation, UAE still awaits for legalized regulations which one may resort to in order to understand the validation of cryptocurrency or to seek a claim against frauds in virtual currency.

Crypto Fraud and Future

The dubious behaviour and presence of Cryptocurrency in the market make it treacherous for investors as it can turn out to be Ponzi scheme to steal money. The basic ideology behind Cryptographic money makes it arduous to prevent theft as any crypto asset is stolen cannot be traced and returned to the original investor. From past a decade, we have come across numerous hacks and scams in a crypto world wherein; Coin Check was the world’s biggest crypto theft. Cryptocurrency is a bubble or a market; we are yet to confirm that stand. Nonetheless, it has offered the opportunity to billions of users’ entrance to the financial market who otherwise did not even had a bank account as they fail to meet the relevant criteria to open a bank account. The current position of Cryptocurrency in UAE is grey, and the future as of now is colourless. Numerous nations have initiated to issue guidelines to control the buying and selling of Cryptocurrency and to prevent the unauthorized usage and avoid financial frauds.

Everything You Need to Know About Employment Lawyers in Los Angeles

By and large, the employment law in the US is state-specific, which means hiring a lawyer specializing in the domain must be well-versed about the rules and regulations relating to employment in the state is vital. On the other hand, the legal terminology is critically tough to understand, which is where employment lawyers in Los Angles can assist by explaining the terms or jargon used in various areas like its legislation, handbooks, and or legal documents concerning employment.

Key Functions

An employment lawyer helps by advising both employees as well as employers regarding state and federal laws as per the necessity of the client and especially as they’re being violated. Employment lawyers ensure that employees in the particular state are fairly treated in a lawful manner and employers adhere to the compliances with the legal guidelines in their workplace.

Employment lawyers in Los Angeles usually draft and analyze employee handbooks, assist in regard to wage laws, issues, rights and disputes to represent on behalf employees before the Equal Employment Opportunity Commission and also provide guidance on the legal rights of employees’ and verify if such rights are violated.

Employment lawyers’ deal with employment related legal issues that include

Wrongful termination;

Workplace discrimination;

Contract violence;

Sexual harassment and

Whistleblower protection;

Many attorneys represent on behalf of employees, especially those who are not members of any union or basically helpless in situations whereas employers undertake unlawful actions making employees vulnerable.

When to Hire an Employment Lawyer

(From employee perspective)

Employers often undertake different illegal actions putting employees at risk. Under such circumstances, you consider hiring employment lawyers in Los Angeles.

•  You’ve been harassed, penalized, discriminated, or sexually harassed by the employer.

•  You’ve been fired or terminated by the employer while the termination has been illegal (as you assume)

•  You’re being forced by the employer for signing an agreement that waives your rights that you’re entitled to.

•  The employer forces you to work in a toxic work environment

•  Whereas the employer has violated federal or state employment laws posed to defend employees.

•  The employer hasn’t provided the benefits or promotion that you are entitled to according to the employment agreement.

•  Make sure to get in touch with an employment lawyer right away to discuss the issue. Mind well, your delay in contact could stop you from establishing the unlawful conduct of the employer and prevent you from recovering your damages.

When to Hire an Employment Lawyer

(from an employer perspective)

A specialized employment lawyer can help you in terms of various employment and labor issues. They educate employers regarding state/ federal labor laws and make sure if the employer complies with such laws.

Contact an employment attorney whereas:

•  You are in need of representing regarding group bargaining and negotiations.

•  If an employee files a charge of harassment, discrimination and or revenge against you

•  Whereas an employee has charged you regarding deprival or any employment related issue.

•  You’re having a plan to dismiss, demote or fire a group of employees, modify the existing pension plan, benefits that you’re offering.

Knowledgeable employment attorneys in Los Angeles can suggest to you regarding the legal issues and disputes according to the legal provision, rules, and guidelines relating to the matters. They can review and help you by preparing job agreements and contracts that you can deploy with your employees (staffing agreements, severance contracts, and dismissal and so on.

Tips to Hire a Sexual Harassment Attorney

Victims of sexual harassment in the workplace can face a number of problems. They can find it difficult to focus on their work. They may be under extreme duress. Their work and personal life can suffer a setback.
Sexual harassment is a serious offense and victims need not suffer in silence. There are sexual harassment attorneys who can help you in such cases.

Here’s how to hire a sexual harassment attorney.

Conduct an online search.

It is important to hire a local attorney to handle sexual harassment cases. Laws pertaining to sexual harassment at the workplace may differ from one state to another. So, it is important that you hire a qualified and experienced attorney based in your local area.

Online searches can help you greatly in this regard. Try using search keywords that include your location. For instance, use sexual harassment attorney in Los Angeles, CA if you want one in this city. Such searches will help you find names and websites of leading attorneys in your area who practice in the area of sexual harassment in the workplace.

Check the experience of the attorneys.

Now that you have the names of sexual harassment attorneys in your area with you, it is time to check their experience under this practice area.

Check the websites of the lawyers and see if they have sufficient experience in handling all aspects of the employment law including sexual harassment cases. It is best to choose an attorney who specifically focuses on employment laws rather than many different practice areas.

Employment laws keep changing and lawyers practicing in this area need to keep pace with them. Sexual harassment cases can also be tricky as often victims are not able to provide sufficient evidence to help their case. But experienced attorneys can find a way to help the victims.

Check other credentials.

Other than the experience of the attorneys, it is also important to pay attention to their credentials. It is best to hire a reputed lawyer who is known to help the victims.

Read about their education and training. Check if they are members of their professional associations. Read about the awards and recognition they have received over the years.

Schedule a free consultation.

Reputed lawyers always offer a complimentary evaluation of cases to their prospective clients. It is in your interest to schedule to utilize these complimentary consulting sessions to see if your case has a chance.

Many sexual harassment victims are not sure how to proceed with their case. They may be even afraid to file a case against the perpetrator. You discuss your case with the lawyers. They can guide you about the next steps to take. They can also let you know if they can take your case or not. You can also inquire about their fee at this time.

DUE DILIGENCE: Importance In Acquisition

We can list numerous corporations who rushed into professional marriages without performing legal due diligence or reviewing the corporate structure and relevant documents of the company.

An acquisition transaction is one of the most appropriate decisions taken by a company which frames the future of any organization. Thus, careful due diligence into the financial reports of the target company holds utmost importance.

Legal due diligence of a corporate entity is often a lengthy and a cumbersome task, which can significantly impact the timeline of the project. In any merger or acquisition, parties are usually concerned about the time frame and desire to finish the transaction at the earliest. The Corporate Lawyers of UAE will highlight certain important aspects of due diligence in any merger or acquisition transaction under UAE laws.

Epitome of Due-Diligence

In any Merger or Acquisition transaction, it is advised to evaluate the strengths and weaknesses of the project as well as the target company and its sister companies prior to finalising the deal. The objective of the concerned exercise to obtain all relevant and up-to-date information of the target entity and to understand the significant shortcomings of the company which were earlier not apparent. It can further assist in understanding the financial or legal consequences that might hinder the future growth of the company or can impact the return on investment.

Legal due diligence mostly conducted by Corporate Lawyers of Dubai will comprise of financial and legal review of the targeted company. Wherein, the financial analysis is usually performed by financial experts, and qualified Corporate Lawyers undertake the legal review. In any legal due diligence, lawyers tend to review structure of the company, corporate documents, trade licenses, management structure, power of attorneys, corporate agreements, financial liabilities, employment contracts, outstanding debts, internal policies, insurance agreements or policies, movable and immovable assets, mortgages, loans, corporate and commercial litigation and list goes on. As mentioned above, the ultimate objective of this exercise to prevent the acquiring company from any future casualties post taking over the target company.

The scope of due diligence exercise vary in each transaction, and it will rarely be general and covers all aspects of the company related to the sale. It is less likely that the due diligence review will be limited in scope as it involves review of all significant issues pertaining to the company which might impact the merger or acquisition transaction. It further depends upon the organization structure and the business of the target company that can either be retail, construction, telecommunication or any other activity. In each of the companies, the lawyers have to review the business structure, assets in order to determine the shortcomings of the company and how to improvise such deficiencies. There is a direct nexus between the size of the company and the extent of due diligence review as for a small acquisition transaction does not require extensive due diligence review. However, in a significant acquisition transaction, a thorough investigation of documents is required for in-depth knowledge of target-company.

For instance, in an acquisition transaction between companies providing professional services, the due diligence review will entail reviewing the competence of employees and their contract, determining the licenses obtained by the company, goodwill in the market, intellectual property registration, contracts entered by the company. Whereas, if the target company is sale oriented then it is likely to review the goods purchased and sold, outstanding debt in the market, movable and immovable assets of the company, machinery, factories, additional permits and licenses.

The Procedure

The target company in an acquisition transaction is obliged to provide every relevant document of the company which can affect the acquisition transaction or which is necessary for acquiring the company to review before finalising the deal. The seller will create a data room either online or physical through which they can offer all the relevant documents to the company or their legal representatives. It is essential for the target company to provide all documents otherwise the process and timeline will unduly increase delaying the transaction unnecessarily.

Timeline for Review

The schedule for finishing any due-diligence review is directly correlated to the size of the transaction and the number of documents made accessible for the survey. The seller will either required to provide copies of all documentation or create an information room and give adequate access to it to the legal advisors, bookkeepers and different experts surveying the literature for the buyer. The seller ought to likewise provide answers to inquiries raised by the buyer’s consultants amid the survey that emerges out of the documents submitted. In such circumstances, the process can be completed within a standard time frame. The course of events will undoubtedly be expanded where a seller isn’t adequately helpful and is hesitant to give materials, and data asked for or neglects to do as such quickly. For giant acquisition transaction, parties split up the review into several stages where each stage entails an analysis of specific documentation. Accordingly, the parties can fix a timeline for each step and all the stages can be either co-dependent on each other and can be separated at the same time.

Advantages

Legal due diligence offers an opportunity to the party to determine the assets, liabilities, market standing, internal structure, management of the target company before finalizing the deal in order to understand the future legal and financial repercussions. It is most beneficial for the purchasing company to determine the current status of the target company and the amount of further investment required in the company. On the basis of the due diligence report, the buyer will be able to analyze the transaction completely and will be able to understand the advantages and disadvantages of acquiring the company. It also opens an opportunity for the buyer to check whether the price offered for the acquisition is up to the standards of the company or will there be a room for negotiations.

It further allows the seller to provide an opportunity for the buyer to remedy if there is any deficiency prior to the transaction. It is always prudent to conduct the due diligence review before the transaction to have complete information prior to signing the deal.

Concluding Remarks

Legal Due diligence in an acquisition transaction is a pivotal step which evaluates the risks involved in the transaction by reviewing the relevant corporate documents of the target company. The exercise will aim to inform the buyer about the true features of the company targeted which subsequently guarantees that necessary precautions are taken while arranging and finalizing the acquisition transaction. As of late, there has been a pattern increasingly more towards gatherings acquiring guarantee insurance to alleviate the dangers related to M&A transactions. Subject to specific prohibitions, this protection will safeguard the parties against costs related to defaults in the due diligence procedure by either party failing to provide relevant documentation. Nevertheless, due diligence review is of the most important part of an acquisition transaction, if carefully undertaken by best Corporate Lawyers in UAE.

Can i sue my employer for wrongful termination

What’s more, in the event that it turns out you were terminated wrongfully or unjustifiably, your next question would be whether or not you have the right to sue to seek adequate damages under the Labor Law of UAE. Best of Lawyers of Dubai consider it as “arbitrary dismissal” in cases where the employer to lay off an employee or force to do as such with any reasonable grounds. This sort of rejection is typically against the rules and regulations which implies that the termination is outlandish and preposterous and should be investigated.

In accordance with the provisions of the Labor Law, the employees can document a grievance before the relevant authority in case they believe that the termination was unfair. With respect to the employers, they should give verification or proof of their case that the employee is expelled on reasonable grounds such as poor performance or gross misconduct.

Article 122 of the Labor Law constitutes that the termination of any employee without any justifiable reason or any reasons which does not relate to the employment results as unfair termination. Innumerable cases of unfair termination can be witnessed for instance in case where employee is a reason that an organization endures an incredible loss in income or something different altogether which should be immediately informed to the MOHRE within 48 hours of its occurrence. In such circumstances, failure to inform such act to the authority would result as arbitrary dismissal. Secondly, in cases where the employer demotes the employee and pays lesser salary than previously can be a rationale behind filling a complaint.

Notwithstanding the foregoing, there are several reasons under which the employer can terminate the employee without sufficient notice as indicated by Article 120 of the UAE Labor Law and the grounds are as follows:

1. The employee is observed to utilize a fake personality to secure the job. This incorporates submitting fake records of any sort.

2. The employee is expelled amid the probation time frame.

3. The employee has cost the organization a major loss of revenue, which has been informed to the authority within said timeframe.

4. The employee has not fulfilled his roles and responsibilities as agreed under the contract.

5. The employee was inebriated state or was using any unlawful medication in the workplace.

In the event that the afore-mentioned clauses are proved against the employee, it is legitimate and the employer has the option to terminate the employee without any reason. Be that as it may, if a worker is under an apprehension that the grounds for dismissal were arbitrary, he may register a complaint before Ministry of Labor to reach an amicable settlement, failing to receive a settlement, he may register the matter in labor court upon receiving an NOC (No-objection Certificate) with the assistance of Top Lawyers of Dubai. In such circumstances, compensation for wrongful termination that is up to 3 months of total salary and relevant end of service benefits can be claimed from the employer.

Guide on Commercial Dispute Resolution

Wherein arbitration is nowadays the most common and widespread medium for resolving such disputes. The country follows the civil law system with an inquisitive approach of the court. The Corporate Law wherein arbitration is nowadays the most common and widespread medium for resolving such disputes. The country follows the civil law system with an inquisitive approach of the court. The Corporate Lawyers of Dubai in this article have provided complete information regarding the dispute resolution process in UAE with regards to commercial disputes. The lawyers of Dubai have made it simpler for international and domestic investors to understand the legal framework and the UAE court structure to resolve commercial disputes:

1. What are the primary dispute resolution mediums used for resolving the commercial dispute?

The legal system of UAE is derived from the Constitution where Shariah and civil law are the main sources of legislation. There are several mediums available for investors to resolve commercial disputes as follows:

A. Litigation

The disputing parties can refer the matter before the courts specifically Court of First Instance of the respected Emirate. The country (except for some free zones) follows a civil law system wherein each case is decided on the basis of its facts and merits. Court proceedings are in Arabic through a UAE National lawyer.

All the documents submitted before the court must be in translated in Arabic bearing legal attestations (if required by courts). Proceedings before UAE courts are through written pleadings supported by documents.

All the Emirates except Abu Dhabi and Ras Al Khaimah (RAK) are a part of the Federal Judicial system. The foregoing Emirates have an independent judicial system. However, each Emirate follows the similar structure as below:

  • Court of First Instance;
  • Court of Appeal;
  • Court of Cassation (RAK does not have Court of Cassation and all the appeals are presented before the Supreme Court of Abu Dhabi.)

B. Dubai International Financial Centre (DIFC)

Apart from the civil courts, the Emirate of Dubai has its own financial free zone that is DIFC which has its own laws and regulations and an independent judiciary to deal with cases arising within DIFC. It is a common law jurisdiction, and all the proceedings and documents are submitted in English. The jurisdiction of DIFC Courts is established by virtue of Dubai Law Number 16 of 2011 which empowers the DIFC Courts to entertain local and international cases and resolve commercial disputes, upon mutual consent of the parties.

Recently, DIFC courts have held that they have jurisdiction to enforce foreign and domestic arbitral awards as they are a signatory to the New York Convention. The court of Appeal of DIFC opined that DIFC court has jurisdiction to enforce foreign financial judgments. However, this had recently caught the attention of Dubai Courts when Dubai Court of First Instance nullified the judgment passed by DIFC courts ratifying an arbitral award, due to lack of jurisdiction. Thus, the question regarding DIFC courts’ authority over approving foreign arbitral awards is still in conflict, and in order to resolve this conflict, Dubai Courts through Decree Number 19 of 2016 incorporated a Joint Judicial Tribunal. So far, if there is a conflict between jurisdictions, Dubai courts will be favoured over DIFC Courts.

C. Abu Dhabi Global Market (ADGM) Courts

ADGM is a financial free zone situated in Abu Dhabi established by virtue of Federal Law Number 8 of 2004, Federal Decree 15 of 2013 and Abu Dhabi Law Number 4 of 2013, having its own separate rules and regulations and its independent court and an arbitration centre. The courts in ADGM only entertain matters arising within ADGM or between the companies registered with ADGM authority. Common Law system is the foundation for civil and commercial law in ADGM which is based on English Law Regulations of 2015. Further, ADGM has well-established English statutes which can govern civil and commercial matters. ADGM courts have categories and divisions such as Employment divisions, civil claim division, Enforcement courts enforcing judgments of Abu Dhabi Judicial Department. ADGM provides digital court services, wherein the cases and other documents are filed electronically, and the cases are managed through an online portal system. ADGM is the first institution to provide completely digitalized courtroom platform.

2. What is a structure for UAE courts where commercial disputes are referred?

There are no particular courts for resolving commercial disputes, and all the commercial cases are tried by the civil courts in the following structure:

a. Court of First Instance:

b. Court of Appeal;

c. Court of Cassation.

The judges in the aforementioned courts may not have special expertise in trying these commercial matters. However, they hold the authority to appoint a third [arty expert, if required. Further, it is pertinent to note that any commercial dispute prior to being referred before the civil courts, is registered before the Reconciliation and Settlement Committee (the Committee) which is appointed by the Ministry of Justice in lieu of Federal Law Number 26 of 1999 concerning the Establishment of Reconciliation Committee in Federal Courts. The Committee tries the matter and provides a settlement opportunity to the parties which can avoid the litigation process. However, should the parties’ fails to settle the issue amicably, the matter will be registered before the Court of First Instance. Nevertheless, if the parties resolved the case before the Committee, the decision will be recorded and signed by both the parties, which is binding and enforceable.

Whereas a different picture can be witnessed in Dubai and RAK courts as under Dubai Law Number 16 of 2009, Dubai courts have established a Centre for Amicable Settlement (the Centre). The Centre has the authority to hear the following type of disputes:

a. Dispute regarding the partition of common property;

b. Disputes where parties mutually agree to settle through the Centre;

c. Disputes are pertaining to outstanding debt worth AED 100,000. In the aforementioned cases, the matter should be initially referred to the Centre. Whereas, employment and family matters cannot be referred to the Centre.

3. What is the limitation period within which the commercial disputes shall be presented before the courts?

UAE Federal Law Number 5 of 1985 on the Civil Transactions Law (the Civil Code) provides for the general rules regarding the statutory limitation imposed on civil and commercial cases. Generally, a civil claim is barred by limitation after 15 years from the date the claim arose, unless otherwise specified by a statute. Notwithstanding the foregoing, there are numerous exceptions to the general rule of law, as there are certain statutes which provide a different time limitation for different disputes.

Further, Federal Law Number 18 of 1993 pertaining to Commercial Law (the Commercial Code) provides for limitation period in certain cases mentioned below:

  • Contract disputes are time-barred for 15 years;
  • Matters related to bounced cheque must be filed within 3 years;
  • Insurance disputes should be registered within 3 years;
  • Any claim arising out of Tort must be referred within 3 years;
  • Any claim due to defects in the architecture of a building must be registered within 10 years;
  • The agreement for the carriage of goods by sea must be in 1 year;
  • Employment matters to be recorded within 1 year.

4. What are the different stages followed by UAE courts in any court proceeding?

Stage I: Registration of Case

Any proceeding initiated in the Court of First Instance in the relevant Emirate must be through a pleading/plaint followed by respective court fees, depending upon the amount of the claim. The court fees in all the Emirates vary from 3-6% with a maximum cap of AED 40,000 which must be paid by the claimant. In several jurisdictions court upon passing an unfavourable judgment against the defendant, can order the defendant to reimburse the court fees to the claimant. Any claim registered before the courts must meet all the requirements and must contain all relevant information regarding the claimant and the defendant and the dispute.

Upon registering the claim, the court issues summons (the claim and supportive documents submitted by the claimant) to be served on the defendant along with a hearing date.

Stage II: Service of Summons

The summons or notice for registration of a case is through by court in various steps that are either by courier, email, or a court officer. It is important for the defendant to acknowledge the receipt of summons, However, if the court officer is unable to deliver the summons to defendant and defendant fails to attend the hearing the court will adjourn the matter for another hearing. Also, if the personal service was not possible, the service should be made by affixing the summons on the defendant’s property or through publication in two local newspapers (Arabic and English).

If the defendant resides outside the country, the summons will be served through diplomatic channels, including Ministry of Foreign Affairs and UAE Embassy in the country of Defendant. It can also be through electronic means.

Stage III: Hearing

Once a response is submitted by the Defendant, the court will adjourn the hearing for claimant’s reply on another date. Further hearing dates will be issued; until both, the parties submit the memorandums and documents to support their claim. However, if the defendant post several attempts failed to attend the hearing, the court will pass an ex-parte judgment. Also, the court can appoint a third party expert, should the matter require technical knowledge and assistance.

5. Do the courts in UAE allow for interim reliefs? If yes, on what groups can such application be brought before the court?

Generally, interim reliefs are not granted to the claimant. However, the competent court will grant the following:

a. Summary judgment

The court is empowered under the Civil Code to pass a summary judgment if:

  • A creditor confirms in writing his debt;
  • If the claim is based on a specific amount;
  • The claim was against the guarantor.
  • The demand to seek such claim was raised at least 5 days prior to submitting

the application for summary judgment. If the court orders a summary judgment, in favour of either party the order along with application should be served to the defendant who then has 15 days from the date of judgment to set aside the order on reasonable grounds.

b. Preliminary attachment orders

The court upon being satisfied that there is a prima facie case against the defendant or if the order for attachment of property is not granted the Claimant even after receiving the favourable order will not be able to enforce the judgment will pass provisional orders for attachment of the property. The party filing an application for attachment of property must provide supporting documents and specify the assets which need to be attached. Interim relief for attachment of property completely depends upon the discretion of the court. Nevertheless, parties must submit evidence proving an imminent danger to the property which is the very basis of the claim.

Further, if it is proven in the court that the interim relief was sought on malicious grounds or with the intention of causing harm or delay in the proceedings, the claimant will be liable to pay damages decided by the court. In addition, the court may require from the applicant to submit a bank guarantee or a letter of indemnity along with the application for interim relief.

c. Special cases

The interim relief in special cases involve an application for a travel ban, where the claimant has a strong apprehension that the defendant might leave the country without settling the claim, the claimant may file an application to seek the following remedy:

a. Travel ban until the final judgment;

b. An order to seize defendant’s passport. If the defendant fails to offer his passport, he must submit a bank guarantee equal to the amount of the claim. Further, in some circumstances, if the court is of the opinion that the evidence in the subject matter can be destroyed, they may appoint an expert to examine the situation and draft a report relying on which the court may grant interim relief.

6. What is the role of an expert in any court proceeding?

The appointment of third-party experts in the courts of law is through Federal Law Number 7 of 2012 regarding the Expert Evidence before UAE Courts. Further, Federal Law Number 10 of 1992 concerning the Evidence Law governs the appointment of Expert. The experts are usually appointed in for seeking opinion on several matters which require appropriate knowledge and skills such as in financial or technical matter. All the courts have a list of experts through which the experts are appointed. The court does not allow the parties to decide an expert due to issues of biases mutually.

The expert so appointed must comply with the rules and regulations set out by the Evidence Law, which includes arranging meetings with parties or their legal representatives and maintaining the minutes of the meeting and more. Once a report is drafted and submitted to the court, the court will issue a hearing date for both parties to comment on the report. The post is receiving both parties’ comments; if the court is of the opinion that further investigations are required, the matter can be again referred to the same or new expert. It is important to highlight that claimant is usually required to pay for expert fees, which can be reimbursed, should he receive a favourable judgment.

7. What are the rules pertaining to appeals in a court proceeding?

Any party aggrieved from the judgment of the Court of First Instance can file the case before the Court of Appeal. The appeal can be filed on the grounds of fact and law. Patties also have the right to present further submissions and evidence. All the appeals must be filed within 30 days from the date of receiving the judgment from Court of First Instance. However, the time frame may be extended in some circumstances.

The appellant filing appeal has to submit the grounds for filing the appeal along with documentary evidence supporting the claim. Upon receiving the appeal, the court will notify the other party and will provide a hearing date for the respondent’s submission. Subsequent hearing dates will be provided for submissions, and once the court is satisfied that the matter is pleaded, the court will order for judgment. Parties have further right to file an appeal before the Court of Cassation within 60 days from receiving the judgment from Court of Appeal on the grounds of law.

8. What procedures are followed to enforce a local or a foreign judgment in UAE?

Enforcing Local Judgment

Either party upon receiving the judgment form a competent court may file for execution after 30 days from the date of judgment. The execution court will notify the other party to submit the claim amount, however, if he fails to the court can execute the judgment through:

a. Sale of debtor’s property;

b. Sale of his shares in the market;

c. Arrest warrant against the debtor.

Enforcing Foreign Judgment

UAE is a signatory to several bilateral treaties and judicial co-operation to recognize and enforce arbitral awards. Under Riyadh Convention to which UAE is a signatory, all other signatory countries can enforce the judgment passed from their courts in UAE.

Whereas, for countries where UAE has not signed any treaty, the requirements mentioned in the Civil Code must be satisfied which are highlighted as below:

  • Courts of UAE must have jurisdiction to try that matter;
  • Judgment should be issued by a competent foreign court;
  • The foreign court should have summoned the defendant;
  • The foreign court judgment should be binding and enforceable;
  • Judgment should be in line with the laws.

9. What are the main Alternative Dispute Resolution methods available in UAE for resolving commercial disputes?

Alternative dispute resolution methods involve arbitration, mediation and conciliation. For arbitration, the Chamber of Commerce has their rules and regulations and authority which can undertake cases filed to resolve through ADR such as Dubai International Arbitration Centre, Abu Dhabi Commercial Conciliation and Arbitration Centre. Apart from the government recognized, the two financial free zones, DIAC and ADGM also have their own arbitration Centre that is DIFC-LCIA. Further, UAE has passed Federal Law Number 6 of 2018 on Arbitration in UAE, which sets out guidelines for undertaking arbitration.

For conciliation and mediation, the courts in different cases offer amicable settlement which is discussed in question 1.

10. What are the primary organisations which offer ADR for commercial disputes?

There are numerous ADR organizations resolving commercial disputes between the parties through a mutual consent which are as follows:

  • Dubai International Arbitration Centre;
  • Abu Dhabi Commercial Conciliation and Arbitration Centre;
  • Dubai International Financial Centre- London Court of International Arbitration;
  • Reconciliation and Settlement committee;
  • Amicable Dispute Settlement Centre.

Each arbitration centre has their own rules and regulations governing the disputes and the procedure for referring disputes before them.