#Use cases for a DIFC Prescribed Company?

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https://10leaves.ae/publications/difc/difc-prescribed-companies

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CARRYING FORWARD ANNUAL LEAVE LABOUR LAWYER

Annual leave is one of the essential employment rights guaranteed on the global level by International treaties and conventions, such as the Labour Organization’s Holidays with Pay Convention (Revised), 1970, and on the federal level, by the UAE Federal law No 33/2021 On the Regulation of Labour Relations (the Labour Law), which is supplemented by the Cabinet Decision №1/2022 On the Implementing Regulation of Federal Decree-Law №33/2021 Regarding the Regulation of Employment Relationships (the Regulation).

The Labour Lawyer provides for each worker employed in the State to be granted an annual leave with full pay of not less than: a- thirty (30) calendar days for each year of continuing service (State holidays included if they fall within the days of annual leave taken); b- two (2) days each month if the service period is between 6 months and 1 year. c- days for fractions of the last year an employee spent at work, in case his service ends before using the annual leave balance. No enforceable entitlement to take paid leave arises under the Labour Law until an employee has passed the probation period. However, an employer may grant leave days during the probation period from the balance of the employee’s annual entitlement, while the remainder of accrued but not taken leave shall be compensated in case the probation is not passed.

Dubai Lawyers can provide expert advice on matters related to employee’s annual leave entitlements under the Labour Law and the Regulation. If you have questions or concerns, it’s advisable to consult with a qualified Dubai Lawyer or a reputable Dubai Law Firm to ensure you are aware of your rights and responsibilities.

Carrying Forward Annual Leave

By default, an employee shall use their leave in the year the entitlement arises. An employer, in turn, has the right to determine the dates of such leave as it may be required for uninterrupted workflow, while complete deprivation of annual leaves for more than two years is expressly prohibited. Exclusion may be made when an employee wishes to carry forward a portion of their leave or obtain a cash payment for it per the Regulations or employment policies in force (which policies in no case can diminish rights guaranteed to an employee under the Labour Law and Regulation).

Carrying forward part of the annual leave may be dictated by the company’s operating necessities when full leave could not be availed regardless of an employee’s intention, or when an employee so requests and agrees on this with the employer. The key words here are “part of the leave” since the Labour Regulation prescribes that no more than half of the annual leave can be delayed till the next year. In other words, a minimum of fifteen (15) days of yearly entitlement should still be taken in the same year of entitlement, and another maximum of fifteen (15) days may be carried forward to the following 12 months or paid to the employee in cash. It makes the total of next year’s leave potentially extendable for up to 45 calendar days.

DIFC & ADGM

Slightly different rules apply for carrying forward annual leave in financial free zones such as DIFC or ADGM, but the difference is important. Specifically, the DIFC Employment Law №2 of 2019 and the ADGM both provide for an employee’s entitlement to carry forward up to five (5) business days of accrued but untaken leave into the next year, after which the unused leave entitlement shall expire. The rest days should be utilized in the same year when they accrue.

Lawyers in Dubai can provide guidance on the specific rules and regulations related to carrying forward annual leave in the emirate of Dubai.

Court’s Protection

It is important to note that employment disputes governed by the Labour Law have a limited time frame of only one (1) year from the date the right to be protected arose. This applies to both denied leave days and the employer’s obligation to pay in lieu of the untaken days. Therefore, a court cannot enforce any right to compensation for accrued but unused leave if one year has passed since it should have been taken. This is in line with the legal prohibition of carrying forward annual leave for a maximum of one year. Failure to initiate a legal case within this time frame may result in the complete loss of the employee’s right to compensation.

For further guidance and information on the application of the discussed law, please get in touch with the Al Dhaheri International Advocates & Legal Consultants using the contact details listed on our website. Our team is committed to promptly and effectively addressing any inquiries you may have on the application of the concerned law.

Written by Legal Counsel — Alona Sadovets

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Is Arbitration An Effective Dispute Resolution Method For The UAE

The UAE has continuously aimed to attract international investment in the country to further its economic progress. The end goal has been to build a flexible business environment in the UAE, one that furthers economic prosperity. The United Arab Emirates is today home to a multitude of expat populations, to the tune of almost ninety per cent of the total population.  The last few years have seen many progressive legal reforms being enacted in the UAE that have been critically aligned with the economic reforms. The progressive new laws also aim to make the region more expat-friendly and adaptable.

 Building a highly effective dispute resolution system that matches the international standards has been a key focus for the UAE. The UAE Arbitration Law is modelled on the UNCITRAL (United Nations Commission on International Trade Law) model Arbitration Law which represents the international best practices. Pursuing an arbitration process over the traditional litigation route can offer many distinct advantages such as choice of language, Confidentiality, flexibility to choose the number of arbitrators, the seat of arbitration, procedures etc. The Federal Law No. (6) of 2018 on arbitration (‘Arbitration Law’) defines arbitration as ‘ A procedure regulated by law in which a dispute between one or more parties is submitted, by agreement of the parties, to an arbitral tribunal which makes a binding decision on the dispute’(Article 1 ).

The UAE arbitration law also prescribes the following preliminary requirements in order to constitute a valid and binding arbitration agreement:

 · An Arbitration Agreement is required to be in writing, and otherwise, it shall be considered void (Article 7 (1)).

· An Arbitration Agreement may only be concluded by a natural person having the legal capacity with specific authority to arbitrate (Article 4(1))

· The Arbitration Agreement may also be concluded after a dispute has arisen, even if an action in this respect has already been brought before a court. In such a case, the agreement must determine matters included in the arbitration. (Article 5(2))

· The Parties are free to agree on a procedure of appointing the arbitrator or arbitrators and the time and method of appointment (Article 11 (1)

Due to the many advantages that arbitration can provide over traditional litigation, it is often the preferred choice for dispute resolution for legal companies in Dubai, as well as in other emirates. Unlike traditional litigation that happens before the local courts wherein the official language of the court i.e. Arabic is used. The arbitration in the UAE can be in other languages such as English, and further, the parties also have the right to choose the law governing the dispute (which could be a foreign law). Hence, it is critical that one should choose only the top law firms in the UAE to represent them in arbitration. As only such international firms can provide you with the lawyers and legal experts specializing in arbitration matters. So instead of conducting a general search on lawyers in Dubai, specifically search for arbitration law firms in Dubai or arbitration lawyers in Dubai. The established arbitration centers in the UAE include, the  Dubai International Arbitration Centre (DIAC), the Abu Dhabi Commercial, Conciliation and Arbitration Centre, DIFC-LCIA Arbitration Centre (Dubai), Sharjah International Commercial Arbitration Centre (Tahkeem) and Ras Al Khaimah Centre for Reconciliation and Commercial Arbitration.

The UAE is paving the way for a new and modern era for the country, one that proves its attractiveness to global investors and innovators. The country’s vision remains aligned with the ambitions of the country to become the leading business hub and also to establish a well-diversified economy. The new changes effected in the recent years are a welcome move that will certainly attract more foreign direct investment in the region as well as spurt further economic growth.