Enforcement of UAE Judgments in India

Enforcement of UAE Judgments in India

On January 17, 2020, the Indian Ministry of Law and Justice announced that the UAE would be recognized as a ‘reciprocating territory’ under section 44 of India’s Code of Civil Procedure (Law No. 5 of 1908), commonly referred to as the CPC. This declaration allows for the enforcement of civil Judgments from certain Courts in the UAE as if they were local Judgments in India. The designated ‘Superior Courts’ listed in the notification include the UAE Federal Supreme Court, various federal, first instance, and appeals courts in different emirates, such as Courts in Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah, Abu Dhabi Global Market ”ADGM” Courts, and Dubai International Financial Center “DIFC” Courts.

Before this notification, although the UAE and India had a bilateral treaty for judicial cooperation and the mutual recognition and enforcement of Judgments since 1999, the simplified legal processes outlined in the agreement were not fully implemented. Consequently, individuals seeking to enforce a UAE Court Judgment in India generally had to initiate fresh proceedings and obtain a new civil Judgment from Indian Courts. This process was time-consuming and costly.

Under the current situation, foreign Judgments from Courts in ‘reciprocating territories,’ including the UAE, can be directly enforced in India as if they were Indian Court Judgments. This means that a UAE Court Judgment can now be enforced in India without the need to obtain a new civil Judgment from Indian Courts.

However, this new process is not automatic. The party seeking enforcement must initiate execution proceedings in the competent Court in India, most likely a district Court. They must provide a certified copy of the UAE Court Judgment and a certificate from the relevant UAE ‘Superior Court,’ confirming whether any part of the Judgment has been satisfied. The Judgment creditor will have an opportunity to object to the enforcement.

Importantly, the applicable limitation period for enforcing a UAE Court Judgment in India has been extended from three years (when the UAE was not recognized as a reciprocating territory) to 12 years under the new regime, as per the Indian Limitation Act 1963.

The notification holds significance due to the growing bilateral trade between the UAE and India, this development presents an opportunity for creditors to pursue debtors in India through the UAE Courts, including those in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Markets (ADGM). It is especially relevant in family law matters, where enforcement of UAE Court Judgments regarding divorce or alimony against Indian nationals or residents can now be done without initiating fresh proceedings in Indian Courts, thus reducing the risk of conflicting family law Judgments and the associated costs and delays.

In conclusion, the recognition of the United Arab Emirates (UAE) as a ‘reciprocating territory’ by the Indian Ministry of Law and Justice marks a significant milestone in cross-border legal cooperation between the two countries. This recognition allows for the direct enforcement of UAE Court Judgments in India, eliminating the need for time-consuming and expensive fresh proceedings in Indian Courts. Overall, the recognition of UAE Court Judgments in India opens up new avenues for efficient dispute resolution, enhances legal certainty, and paves the way for stronger ties between the two nations. It presents an exciting opportunity for individuals, businesses, and families to navigate cross-border legal matters more effectively, fostering greater trust and cooperation in the realm of international law.

For further information or assistance regarding this visa or any other legal inquiries, please feel free to contact us at +971.4.4221944 – reception@alsafarpartners.comwww.alsafarpartners.com

Written By: Mrs. Kavitha Panicker – Managing Partner at Al Safar and Partners Law Firm.

PRESS RELEASE: Al Safar & Partners Announces Key Role in Dubai Land Department’s Real Estate Evolution Space Initiative

PRESS RELEASE Al Safar & Partners Announces Key Role in Dubai Land Department's Real Estate Evolution Space Initiative

Press Release: Al Safar & Partners Announces Key Role in Dubai Land Department’s Real Estate Evolution Space Initiative

Dubai, UAE – 16/5/2024 – Al Safar & Partners is proud to announce its significant partnership in the launch of the Real Estate Evolution Space (REES) Initiative by the Dubai Land Department. This groundbreaking initiative aims to enhance innovation within the real estate sector and attract specialized technology companies to Dubai.

Our Founding Partner, Adv. Mahdi Al Safar, and our Partner & Head of Arbitration, Mr. Eduard Nedelcu, were present at the launch event. In a landmark move, Al Safar & Partners signed a Memorandum of Understanding (MoU) with the Dubai Land Department, underscoring our commitment to supporting the UAE’s real estate technology sector by providing initial legal guidance to the parties in the real estate field.

As part of this initiative, Al Safar & Partners will provide legal consultancy services focusing on:  

– Strategic Consultation, guiding real estate technology companies through their initial stages of establishment by providing comprehensive legal consultation.

– Intellectual Property Advisory: Providing legal advice on intellectual property registration matters to ensure companies safeguard their innovative ideas and assets.

– Project Finance Legal Advisory meant to assist companies in navigating financing, fundraising contracts, and partnership agreements, while facilitating access to funding sources.

– Regulatory Compliance: Advising on compliance with local ensuring companies operate within legal boundaries while promoting their products and services.

– Marketing Legal Support: Offering legal assistance to enhance the outreach of real estate technology companies by advising on marketing contracts, including international marketing efforts such as collaborations with global social media influencers and traditional media.

– Educational Initiatives: Initiating educational seminars to discuss the legal framework of the UAE pertaining to the real estate technology sector, empowering companies with essential knowledge for sustainable growth.

– Knowledge Dissemination: Publishing informative articles and guides relevant to the legal aspects of real estate technology, providing valuable insights to industry stakeholders.

“We are excited to contribute to the REES Initiative and support the next generation of real estate technology companies in Dubai,” said Adv. Mahdi Al Safar. “This initiative will not only bolster innovation in the sector but also solidify Dubai’s position as a global hub for real estate technology.”

Mr. Eduard Nedelcu added, “Our involvement in this initiative aligns with our constant commitment to providing comprehensive legal support to emerging tech companies, ensuring they navigate the legal landscape smoothly and effectively.”

The Real Estate Evolution Space Initiative represents a significant step forward in Dubai’s strategy to integrate cutting-edge technology into the real estate market, driving efficiency, transparency, and growth. Al Safar & Partners is honored to be a part of this transformative journey.

About Al Safar & Partners: Al Safar & Partners is a leading law firm based in Downtown Dubai, UAE, known for its expertise in commercial matters, arbitration, real estate, and corporate law. With a commitment to providing exceptional legal services, the firm supports both local and international clients in navigating the complexities of the legal landscape.

For more information, please contact:

Hana Al Shoufi 

Communication Department 

Al Safar and Partners Law Firm.

Address: Office 401a, Block C, Al Saaha Offices, Downtown Burj Khalifa District, Dubai, UAE. Tel: +97144221944 ext 5001, 

Email: reception@alsafarpartners.comwww.alsafarpartners.com

الوصية في ضوء قانون رقم 41 لسنة 2023 واللائحة التنفيذية

الوصية في ضوء قانون رقم 41 لسنة 2023 واللائحة التنفيذية

تم إصدار قانون رقم 41 لسنة 2022 واللائحة التنفيذية رقم 122 لسنة 2023 في دولة الإمارات العربية المتحدة “القانون”، والذي يتعلق بشؤون الأحوال الشخصية لغير المسلمين. دخل هذا القانون حيز التنفيذ في الأول من فبراير عام 2023، ويسري على المواطنين غير المسلمين في الإمارات والأجانب غير المسلمين المقيمين في الدولة، ما لم يتمسك أحدهم بتطبيق قانونه الشخصي الخاص به في قضايا الزواج والطلاق والتركات والوصايا وإثبات النسب.

يهدف هذا القانون إلى تحقيق المساواة بين الرجل والمرأة في الحقوق والواجبات المتعلقة بالأحوال الشخصية. وينص القانون على عدة نقاط مهمة، فعلى سبيل المثال:

المساواة في الشهادة: يتم اعتبار شهادة المرأة مثل شهادة الرجل أمام المحكمة، دون أي تفرقة.

المساواة في توزيع الإرث: يتم توزيع الإرث بالتساوي بين الرجل والمرأة وفقًا لأحكام القانون.

الحق في طلب الطلاق: لكل من الزوج والزوجة حق طلب الطلاق من المحكمة بمفردهما، مع احترام حقوقهما المتعلقة بالطلاق.

الحضانة المشتركة: يحق للرجل والمرأة حضانة الطفل بشكل مشترك حتى بلوغه سن الثامنة عشر، وبعد ذلك يكون للطفل حرية الاختيار.

بالإضافة إلى ذلك، ينظم القانون أيضًا قضايا التركات والوصايا. يتيح القانون للشخص المورث الحق في ترك وصية تنظم توزيع أمواله في الدولة لمن يرغب في ذلك. وإذا لم يكن هناك وصية، يذهب نصف الإرث إلى الزوج أو الزوجة، والنصف الآخر يوزع بالتساوي بين الأبناء بغض النظر عن الجنس. وفي حالة عدم وجود أولاد، يتم توزيع الميراث بالتساوي بين الوالدين أو أحدهما، وفي حالة عدم وجودهما يتم توزيع الميراث بين الأشقاء.

ينص القانون على أن الوصية تكون مقدمة على الإرث، وعند تنفيذ الوصية أو توزيع أموال التركة، يجب الوفاء ببعض الشروط والترتيبات المحددة في القانون. ومن بين هذه الشروط: تجهيز المتوفى، ومصروفات إدارة التركة وتنفيذ الوصية، وأجور منفذ الوصية ومدير التركة، وسداد الديون المستحقة على التركة.

بالنسبة لانعقاد الوصية، يحق للموصي أن يجري الوصية بالكتابة أو العبارات الشفوية المقبولة قانونًا، ويجوز أن تكون الوصية لشخص معين أو غير معين، وأن تحدد تصرفات محددة في المال الموصى به. وتتم تسجيل الوصية في السجل المعد لذلك لدى المحكمة المختصة، وذلك وفقا للشروط والإجراءات المنصوص عليها في القانون.

ويشترط لصحة الوصية عدة شروط، منها: جواز تملك الموصى به المال الموصى به، وأن يكون الموصي كامل الأهلية وبعمر لا يقل عن 21 سنة، وأن لا يكون الموصي محجورًا أو ممنوعًا من التصرف في أمواله، وأن يكون المال الموصى به مملوكًا للموصي، وأن تكون الوصية قابلة للتنفيذ، توفر مشروعية الموصى به محلاً وسبباً، أن يكون الموصى به محقق الوجود ومعين المقدار أو قابلاً للتعيين عند الوفاة، وتجوز الوصية في الأموال المستقبلية، إن كانت قابلة للتحقق، ألا تتضمن ما يخالف النظام العام أو الآداب العامة

وفي حالة تعدد الوصايا، يعتد بالوصية التي تم تسجيلها في السجل وبحسب أقدمية تسجيلها. وإذا لم تكن أي من الوصايا المتعددة مسجلة، فتعتبر جميعها وصية واحدة، وفي حالة التعارض يصدر حكم من المحكمة المختصة لتحديد الوصية المعتمدة.

أشار القانون لحالات انقضاء الوصية مثل عدول الموصي عنها، وفقدان صلاحية الموصي، وتصرف المال الموصى به بصورة تنقل الملكية، ووفاة الموصى له، وهلاك المال الموصى به أو ثبوت استحقاقه للغير بحكم قضائي، وإفلاس الموصي، ورد الوصية من الموصى له أو وليه. كما يتضمن القانون أيضًا مادة تنص على أنه في حالة قتل الموصى له للموصي، يُستبعد الموصى له من حقوق الوصية ويستوي في ذلك أن يكون الموصى له فاعلاً أصلياً أم شريكاً أم متسبباً، شريطة أن يكون قد صدر بحقه حكم بات بالإدانة.

ويجب على الموصى له قبول الوصية أو ردها خلال 60 يومًا من تاريخ إخطاره بها، ويتم تسجيل العدول في السجل. وتنقضي الوصية في حالات معينة مثل عدم قبول الموصى الوصية أو ردها، أو في حالة إلغاء الوصية من قبل المحكمة المختصة.

حدد القانون الشروط اللازمة لمنفذ الوصية، حيث يجب أن يكون كامل الأهلية، وألا يكون محكومًا عليه في جناية تخل بالشرف أو الأمانة، وأن يكون قد رد اعتباره إذا كان قد أشهر إفلاسه أو إعساره. كما يشترط أن يصدر منه قبول بتنفيذ الوصية وأن لا يكون له مصلحة في أموال الوصية.

في حالة عدم وجود منفذ للوصية، تقوم المحكمة المختصة بتعيين منفذ بناءً على الترتيب المحدد في القانون.

أوضح القانون مهام وصلاحيات منفذ الوصية، حيث يتولى تحت إشراف المحكمة المختصة حصر المال الموصى به وحيازته وتحصيل حقوقه، ويقوم أيضًا بصرف النفقات الضرورية للموصى له وإدارة المال الموصى به واستثماره، وذلك بعد الحصول على موافقة المحكمة المختصة. كما يتولى منفذ الوصية توكيل المحامين والاستعانة بذوي الخبرة لإنجاز المهام المنوطة به.

ينص القانون على التزامات منفذ الوصية، حيث يجب عليه إدارة المال الموصى به بحسن نية وعدم استعماله لصالحه أو الانتفاع به، ويجب عليه الاحتفاظ بالقيود والسجلات المتعلقة بتنفيذ الوصية وعدم إفشاء معلومات حسابات الوصية للغير ولا يجوز لمنفذ الوصية أو لأي من التابعين له، أن يتعامل بالبيع أو الشراء لحسابه أو الحساب غيره في أموال الوصية كما لا يجوز أن تكون لأي منهما أو زوجه أو أحد أصوله أو فروعه مصلحة مباشرة أو غير مباشرة في أي مشروع أو اتفاق يتعلق بأموال الوصية، إلا إذا صرح له بذلك من الموصي أو المحكمة المختصة، ، وفي مقابل هذه الإلتزامات يحصل منفذ الوصية على أتعاب تحدد من قبل المحكمة. 

وأخيرًا، يجب على منفذ الوصية تقديم تقرير عن تنفيذ الوصية للمحكمة المختصة بعد الانتهاء من جميع المهام المنوطة به.

إن قانون رقم 41 لسنة 2022 واللائحة التنفيذية في دولة الإمارات العربية المتحدة يسهم في تنظيم وتنفيذ الأحوال الشخصية لغير المسلمين بطريقة شفافة وعادلة. يضمن القانون وجود منفذ مؤهل ومختص يتولى تنفيذ الوصية وحماية حقوق الموصى به. كما يحدد المهام والصلاحيات التي يجب أن يقوم بها منفذ الوصية، بما في ذلك حصر المال الموصى به وصرف النفقات الضرورية وإدارة المال واستثماره بحسن نية.

يعد قانون خطوة مهمة في تحقيق العدالة وحماية حقوق غير المسلمين في شأن الأحوال الشخصية. ويعكس التزام دولة الإمارات بتعزيز نظام قانوني يحمي حقوق الأفراد من جميع الخلفيات الدينية والثقافية وأيضا يساهم في توفير بيئة قانونية موثوقة ومستقرة للمواطنين والمقيمين في دولة الإمارات العربية المتحدة، ويعزز الثقة في نظام العدل والقضاء. كما يعكس التزام الدولة بتطوير وتحديث التشريعات لمواكبة التطورات الاجتماعية والقانونية الحديثة.

للمزيد من المساعدة أو الإستفسارات بخصوص مسائل الأحوال الشخصية سواء للمسلمين أو غير المسلمين أرجو ألا تترددوا في التواصل معنا على الهاتف أو البريد الإلكتروني التالي: 97144221944+ – reception@alsafarpartners.com – www.alsafarpartners.com

Written By:

Mrs. Naima Labgaa – Head of the Family Law department at Al Safar and Partners Law Firm.

Rainy Days in the UAE: How Insurance Keeps You Covered

Rainy Days in the UAE_ How Insurance Keeps You Covered

Introduction:

With the increasing global weather fluctuations, the United Arab Emirates (UAE) has recently experienced exceptionally heavy rainfall, resulting in significant damage to properties, specifically vehicles, homes, and commercial establishments. These unforeseen events have highlighted the importance of having sufficient insurance coverage and raised numerous questions about the responsibilities and obligations of insurance companies in such emergency conditions. In this article, we will take a closer look at the role of insurance companies in covering losses caused by rain in the UAE.

Responsibility of Insurance Companies in Compensating Vehicle Damages Due to Rain

Insurance companies are obligated under comprehensive insurance policies, (not third-party liability insurance), to compensate for vehicle damages due to rain. This is considered a case of weather-related damage covered by such policies, as long as the state has not declared these events as natural disasters. Coverage may include repairing the vehicles or compensating for the damages occurred to them. It’s important to differentiate between comprehensive car insurance and third-party liability insurance in the UAE.

Comprehensive Car Insurance in the UAE:

Comprehensive insurance covers all parties involved in the accident, including the at-fault party. Therefore, the at-fault party is not required to repair their vehicle at their own expense; instead, the insurance takes care of it. This includes personal injuries, damages to the involved vehicles, and even valuable possessions lost or damaged due to the accident.

Third-Party Liability Car Insurance in the UAE:

Third-party liability insurance covers injuries and damages caused to third parties by the policyholder, including bodily injuries and property damages resulting from the accident.

Responsibility of Insurance Companies in Compensating Home and Business Damages of the Insured:

Insurance companies are responsible for compensating all insured parties under comprehensive insurance, whether for homes, buildings, commercial establishments, or their contents, for damages due to rain. They are bound to fulfil the agreed-upon terms in the insurance documents, including paying compensation for rain-induced damages. In case of delays in compensation by insurance companies, the regulatory authority represented by the Central Bank is available for complaints at any time.

The Central Bank and Its Relationship with Insurance Companies:

The Central Bank of the UAE supervises and regulates the insurance sector following the Federal Decree-Law No. 25 of 2020, which merged the Insurance Authority with the Central Bank. With this merger, the Central Bank registers insurance companies in the country, grants licences for practicing the activity, including national, foreign, and Takaful insurance companies. The Central Bank is the regulatory body for the insurance sector, responsible for issuing regulations, standards, guidelines, laws, and regulatory releases.

Directives issued by the UAE Central Bank to Address the Consequences of the Weather Conditions in the UAE:

In confirmation of the UAE Central Bank’s commitment to address the consequences of the weather conditions, it issued two directives:

On March 5, 2024, the Central Bank of the UAE launched a new portal called “Sondok” for registering complaints against licensed financial institutions and insurance companies in case of disputes with insurance companies regarding compensation for rain damages.

On April 22, 2024, the Central Bank of the UAE issued a directive authorizing banks and financial companies operating in the country to defer personal loan and car loan instalments for six months to address the consequences of the weather conditions in the country.

Conclusion:

It is evident that the UAE is making necessary efforts to protect its citizens and residents from any damage caused by harsh weather conditions. This is demonstrated by the Central Bank’s adoption of a series of precautionary measures, such as launching a complaint registration portal and deferring loan instalments, to alleviate the financial burden on affected individuals and companies. Additionally, the confirmation from the UAE Insurance Federation of insurance companies’ readiness to provide appropriate compensation reflects their commitment to offering financial protection to the insured during challenging times. In this manner, the UAE consistently demonstrates its commitment to safeguarding its population and community from any challenges that may arise and works to provide the necessary support to overcome those challenges effectively.

For further information or legal assistance please do not hesitate to contact us on the following number or email address: +971.4.4221944 or reception@alsafarpartners.com – www.alsafarpartners.com

Written By:

Ms. Rana Al Shoufi – Legal Consultant & Head of legal Coordination Department at Al Safar and Partners Law Firm

UAE Property Investment: Trends and Legal Considerations

UAE Property Investment Trends and Legal Consideration

As the United Arab Emirates (UAE) continues to solidify its position as a premier destination for global property investors in 2024, understanding the intricate legal framework governing real estate investments becomes paramount. This guide aims to demystify the legal considerations, offering investors a roadmap to navigate the promising yet complex terrain of UAE property investment.

Legal Framework for Foreign Property Investment in the UAE

The UAE’s legal environment is uniquely supportive of foreign investment, especially in the real estate sector. The introduction of laws permitting foreign ownership of property in designated freehold areas has marked a significant shift, attracting a surge of international investment. In cities like Dubai, Abu Dhabi, RAK, Umm Al Quwain and Ajman investors can own properties outright, with the land registry providing a title deed, ensuring legal protection and security for their investments.

Freehold vs. Leasehold: Understanding Your Ownership Rights

In the UAE, property ownership is primarily categorized into two types: freehold and leasehold. Freehold ownership allows investors, including foreigners, to own property indefinitely, granting them full control over the asset. Conversely, leasehold arrangements offer the right to use a property for up to 99 years, with ownership reverting to the freeholder upon lease expiration. Navigating these distinctions is crucial for investors to align their investment choices with their long-term goals.

Real Estate Regulatory Agency (RERA) Guidelines

The Real Estate Regulatory Agency (RERA) plays a pivotal role in overseeing Dubai’s real estate sector, setting regulations that ensure transparency and fairness in transactions. Investors are advised to familiarize themselves with RERA guidelines, which cover a wide range of aspects from property registration to dispute resolution. Compliance with RERA’s regulations is essential for a secure and profitable investment.

Investment Vehicles: REITs and Property Funds

For those seeking alternative investment pathways, the UAE offers Real Estate Investment Trusts (REITs) and property funds. These vehicles provide a way to invest in a diversified portfolio of real estate assets, often generating stable returns. Understanding the legal structure and regulatory framework governing these investment options is vital for investors looking to explore less traditional routes.

Legal Due Diligence: A Prerequisite for Successful Investment

Conducting comprehensive legal due diligence is non-negotiable for any property investment in the UAE. This process involves verifying the legal status of the property, ensuring there are no encumbrances or legal disputes attached to it, and confirming the developer’s credibility and track record. Engaging with a reputable law firm with expertise in UAE real estate law is advisable to navigate this complex process effectively.

The Future of Property Investment in the UAE: Legal Trends to Watch in 2024

As we move further into 2024, several legal trends are shaping the future of property investment in the UAE. These include the potential expansion of freehold areas, modifications to residency laws related to property ownership, and enhanced investor protections. Staying abreast of these developments is crucial for investors aiming to leverage the UAE’s dynamic real estate market.

Al Safar & Partners Law Firm stands ready to assist you at every step of your investment journey, ensuring that every decision is backed by solid legal counsel and a deep understanding of the UAE real estate market. With our guidance, you can make informed and strategically advantageous investment choices, secure in the knowledge that your assets are protected under the full extent of the law. Trust in Al Safar & Partners Law Firm to empower your real estate investments in the UAE.

For further information or assistance regarding this visa or any other legal inquiries, please feel free to contact us at +971.4.4221944 – reception@alsafarpartners.comwww.alsafarpartners.com

Written By: Mrs. Kavitha Panicker – Managing Partner at Al Safar and Partners Law Firm.

Adapting to UAE’s Changing Business Laws

Adapting to UAE's Changing Business Laws

In today’s rapidly changing global economic landscape, businesses around the world are facing unprecedented challenges and opportunities. The United Arab Emirates (UAE), with its strategic location and business-friendly environment, has emerged as a key player in the international marketplace. However, as the global economy evolves, so do the legal frameworks governing commercial activities in the UAE. Understanding and adapting to these changes is crucial for businesses to thrive in this dynamic environment.

The Impact of Global Economic Changes on the UAE.

The UAE’s economy is deeply interconnected with the global market. As such, it is not immune to the impact of major global economic shifts. From fluctuations in commodity prices to changes in trade policies and technological advancements, various factors influence the UAE’s corporate and commercial landscape.

For example, the recent shift towards renewable energy sources and sustainable practices globally has prompted the UAE to diversify its economy and invest heavily in clean energy initiatives. This transition has led to the introduction of new regulations and incentives aimed at promoting sustainability and environmental responsibility among businesses operating in the country.

Similarly, the rise of digital technologies and the increasing importance of e-commerce have prompted the UAE to update its laws to accommodate the changing nature of business transactions. This includes regulations governing online sales, data protection, and cybersecurity, all of which are essential for businesses looking to capitalize on the growing digital economy.

Adapting to the New Legal Framework.

To thrive in the evolving commercial landscape of the UAE, businesses must proactively adapt to the new legal framework. Here are some insights on how businesses can navigate these changes effectively:

  1. Stay Informed: Keeping abreast of the latest developments in UAE’s commercial laws is essential for businesses to ensure compliance and mitigate risks. This can involve regularly monitoring updates from regulatory authorities, seeking legal counsel when necessary, and participating in industry events and seminars.
  2. Embrace Innovation: With the UAE government’s focus on fostering innovation and entrepreneurship, businesses should embrace technological advancements and innovative business models. This may involve investing in digital infrastructure, adopting emerging technologies such as blockchain and artificial intelligence, and exploring new ways to deliver products and services to customers.
  3. Prioritize Compliance: Compliance with UAE’s commercial laws and regulations is non-negotiable for businesses operating in the country. This includes adhering to licensing requirements, tax obligations, employment laws, and other regulatory frameworks. Implementing robust compliance programs and conducting regular audits can help businesses avoid legal pitfalls and maintain their reputation in the market.
  4. Foster Partnerships: Building strong partnerships with local stakeholders, including government agencies, industry associations, and other businesses, can provide valuable support and insights for navigating the legal landscape. Collaborating with local experts and advisors can help businesses gain a deeper understanding of the regulatory environment and identify opportunities for growth and expansion.
  5. Focus on Sustainability: As the UAE continues its transition towards a more sustainable and environmentally friendly economy, businesses that prioritize sustainability will be well-positioned for long-term success. This can involve adopting eco-friendly practices, reducing carbon emissions, and integrating sustainability goals into corporate strategies and operations.

Real-World Examples.

To illustrate the practical implications of navigating UAE’s evolving commercial laws, let’s consider the case of a multinational corporation expanding its operations in the UAE. To ensure compliance with local regulations, the company conducts thorough due diligence, obtains the necessary permits and licenses, and establishes strong partnerships with local suppliers and distributors. Additionally, recognizing the growing importance of sustainability, the company invests in renewable energy projects and implements green practices across its supply chain, thereby enhancing its reputation and competitiveness in the market.

Conclusion.

In conclusion, navigating UAE’s evolving commercial laws amidst global economic shifts requires businesses to stay informed, embrace innovation, prioritize compliance, foster partnerships, and focus on sustainability. By understanding and adapting to the new legal framework, businesses can seize opportunities, mitigate risks, and thrive in the dynamic business environment of the UAE. As the country continues to position itself as a leading hub for international trade and investment, businesses that are proactive and forward-thinking will undoubtedly reap the rewards.

To adapt to the ever-evolving business laws in the UAE and position yourself for success, connect with us at +97144221944 ext. 720 or +971 55 763 0405. Reach out via email at reception@alsafarpartners.com to explore how our comprehensive offerings align with Blockchain Brilliance: UAE’s Legal Roadmap for Corporate Success. Visit www.alsafarpartners.com to elevate your understanding and seize legal opportunities in the UAE’s corporate landscape.

Disclaimer: This article is for informational purposes only and should not be considered legal advice.

Written By:

Dr. Ahmed Hatem – Partner & Head of Corporate and Commercial department at Al Safar and Partners Law Firm.

The Probation Period in UAE Labor Law According to the New Decree

The Probation Period in UAE Labor Law According to the New Decree

To work in the UAE, one must undergo a probation period, exclusively at the beginning of employment.

In this article, we will explain the points related to the probation period, which every individual wishing to work in the UAE must be aware of.  

Probation Period:

The probation period allows the employer to ensure that the employee possesses the required skills to continue working, and it also allows the employee to assess the suitability of the work environment and type of work for him / her. Thus, the probation period is mutually beneficial for both parties of the employment contract.

The determination of the probation period is subject to the employer’s preference, with a maximum limit of 6 months. According to the intended purpose of the probation period, the employee cannot be subjected to it more than once by the same employer, regardless of the duration of employment or the number of times the employment contract is renewed.

The New Regulations for the Probation Period According to Federal Decree No. 33 of 2021:

  1. Duration of Probation Period: Maximum 6 months. An agreement can be reached, for example, for 3 months, and then the probation period can be extended with the consent of both parties to the employment contract, provided that the total does not exceed 6 months. If the employment relationship continues between the parties and the contract is renewed, the employee cannot be subjected to a new probation period.
  2. If the employer terminates the employment relationship during the probation period, the employee must be given a notice period of at least 14 days. If the employee terminates the employment relationship during the probation period, he / she must commit to working for a notice period of at least one month.
  3. If the employee wishes to terminate the services in order to move to work for another employer and is still within the probation period, the new employer is obliged to pay the old employer the costs of recruitment and contracting with the employee, which were paid by the old employer.
  4. If the employee terminates the employment relationship with the intention of leaving the country during the probation period, they must give the employer a notice of at least 14 days. If the employee returns to the country to join a new employer before 3 months have passed since leaving, the new employer must comply with stipulated in the third item.
  5. The notice period is considered part of the employment contract, so there is a salary to be paid. If either party fails to comply with the notice period (during or outside the probation period), they must compensate the other party with a salary equivalent to the remaining notice period. Note that the employer no longer has the right to terminate the employee’s services during the probation period without allowing them to work during the notice period.
  6. If the employee leaves the country without complying with the notice period of at least 14 days and, in order to ensure the smooth running of work, the law punishes the employee by not granting them a work permit for a period of one year from the date of leaving the country.

The decree of Federal Law No. 33 of 2021 has introduced several amendments to the probation period to make it more suitable for both parties of the employment relationship and more suitable for the UAE labor market in terms of protecting and guaranteeing the rights of both parties, as well as imposing new obligations to protect those rights.

For further information or legal assistance please do not hesitate to contact us on the following number or email address: +97144221944 or reception@alsafarpartners.comwww.alsafarpartners.com. 

Written By:

Mr. Obada Al Khatib – Senior Legal Consultant & Head of Employment at Al Safar and Partners Law Firm