Article 53 of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations emphasizes the prompt payment of an employee's salary and entitlements after the contract's expiration.
Understanding Salary Payment Regulations in the UAE
This legal provision underscores the importance of timely remuneration in the UAE.
Leaving the UAE after canceling residency visas does not typically lead to the freezing of salary accounts. However, individuals intending not to return to the UAE are advised to close their bank accounts held within the country to avoid potential complications.
According to Article 9(b) of UAE Central Bank Regulation No. 29/2011, commercial banks must facilitate the closure of accounts upon customer request without imposing penalties if the account has been active for over a year. The regulation ensures that the account closure process is swift, with banks required to issue appropriate certificates within seven days of the application.
UAE Central Bank Circular No.1/2020 outlines regulations regarding dormant accounts. Accounts that remain inactive for three years may be classified as dormant. This classification occurs when no transactions or communications from the account holder have been recorded during this period, except for bank-initiated activities like interest postings.
Receiving End-of-Service Benefits
Individuals leaving employment in the UAE should promptly follow up with their former employers to ensure the timely payment of end-of-service benefits. Once these benefits are credited to the bank account, individuals can proceed to withdraw the funds and subsequently close the account, obtaining a closure letter from the bank as proof.
Understanding the legal framework governing salary payments and bank account operations is crucial for individuals navigating employment and financial matters in the UAE. Key regulations include Federal Decree Law No. 33 of 2021 on Employment Relations, UAE Central Bank Circular No. 1/2020 on Dormant Accounts, and UAE Central Bank Regulation No. 29/2011 on Bank Services for Individual Customers. These laws provide clarity on rights and procedures related to salary payments and bank account operations in the UAE.
Adhering to legal requirements ensures smooth transitions in employment and financial matters. By understanding and complying with Federal Decree Law No. 33 of 2021, individuals can assert their rights regarding salary payments upon contract expiration. Moreover, familiarity with UAE Central Bank regulations concerning dormant accounts helps individuals manage their financial affairs responsibly. By staying informed and proactive, individuals can mitigate potential challenges and ensure a seamless process when leaving employment in the UAE.