Salary proof must to rent an apartment in Dubai

Tenents will have to provide a statement of income from their employer to landlords before leasing a property in Dubai.
Dubai Land Department (DLD) has now included an income statement in the list of documents that a tenant requires for renting an apartment in the emirate.
The other documents required are:
•A copy of your passport
•A copy of your residency UAE visa
•A signed application for tenancy with all information provided
•A security deposit (usually around equivalent of 4 weeks rent) this is refundable when you exit the property providing it is returned to the owner in the same condition when you entered the property.
•The rent sometimes is negotiable but usually four cheques – the first being three months rent cheque, which is dated now, and the following postdated for 3 monthly intervals. The rent is paid in advance in Dubai.
The DLD advises tenants to use only a registered broker/agent, adding newcomers should study the location area maps, have a good look at the differing prices, factor traffic and commuting to work, consider the surrounding amenities, and take a drive around the areas before contacting an agent.

Agents are required to have an agreement with their client (tenant) as the latter pays five per cent fee to the former. The fee is paid at the time of signing a lease contract.
The department also makes it very clear that tenants have no right to alter, damage, change the interior or exterior of the property without express written permission form the owner.
“The days are gone when an irresponsible tenant leaves a property dirty, with their rubbish and unfit for occupation,” it states.
Maintain the property
The property will need to be left in the same condition, as is handed over to the tenant with the tenant and landlord signing an “Entry Condition Report.” This ensures protection to the tenant against the claim of a landlord for damage or condition of a property, which was present before the tenant’s occupation.
Upon leaving the property, an “Exit Condition Report” is completed by the tenant and landlord (or landlord’s agent) and the both reports must match.
“It is a good idea to take some photographs of any damage which your concerned about to ensure you are not blamed for damage, have the landlord or landlord’s agent sign these immediately to protect yourself,” the department counsels.
The DLD website further states a new standard form for rentals and property management will be issued in coming months and shall be available only for registered brokers.

‘Rental Increase Calculator’ on the Dubai Land Department-operated portal to help Tenants

Dubai: Tenants in Dubai can have an instant update on where they stand vis-à-vis the new rental decree by inputting their lease details into the ‘Rental Increase Calculator’ on the Dubai Land Department-operated portal. Doing so will let you know immediately whether you are liable to pay a higher rental during the lease renewal and how much landlords are eligible to demand as per the strict range set by the decree.

The average rentals for all the key residential neighbourhoods are provided, which will be updated to ensure they are in sync with the prevailing asking rates. It will also tell you that the landlord has no right to demand an increase in the current renewal if what you are paying now is within 10 per cent of the average rental for that area. What the decree does is lessen the imbalance in the tenant-landlord relationship, which in this market has historically weighed in favour of the latter.

“This decree will further boost the real estate sector by introducing great deal of transparency and clarity to the tenant-owner relationship which will pay off to all stakeholders involved,” said Tanzeel Gader, CEO of Flash Properties.

Also, just as important going forward, Dubai also does not want to be saddled with a reputation of being a costly place to do business from. The latest semi-annual report from CBRE places the emirate’s commercial realty as being the 23rd most expensive in the world.

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If the increases continue, and it will as the buzz gets heavier with all the Expo 2020 preparatory works, Dubai wants to make sure that it will be confined to set ranges that can also be monitored. This is why the decree is as much about Dubai residential space as it will be about its expanding commercial realty.

His Highness Sheikh Mohammed issues new decree on Dubai rental increases

In his capacity as the Ruler of Dubai, Vice-President and Prime Minister of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts.

The Decree states that there should not be any rent increase if the rent of the property unit is less than 10 per cent of the average rent of a similar property in the same residential area. If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the maximum rent increase shall be equal to 5 per cent of the rent value.

Additionally, if the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit, the maximum rent increase shall be equal to 10 per cent of the rental value.

If the rental value of a property is between 31 and 40 per cent less than the average rental of a similar property, the maximum rent increase shall be equal to 15 per cent of the rental value. A maximum rent increase of 20 per cent is applicable if the rental value of a property unit is less than 40 per cent or more of the average rent of a similar unit.

The Decree applies to landlords from the public and private sectors in the emirate of Dubai including private development areas and free zones.

Article III of the Decree states that the average similar rental value of the property is determined by the Real Estate Regulatory Agency's (Rera) rent index.

The Decree is effective from the date of issuance and shall be published in the Official Gazette.

Annual leave not taken to be paid in cash if employee leaves company -Dubai court issues new ruling.

The Dubai Court of Cassation has established a new legal principle with regards entitlement of annual leave balance of employees.

Employees are entitled to avail cash allowance for balance of annul leave only on two conditions:

First, if the office required the employee to work during his annual leave and could not carry forward the balance leave to the following year.

Secondly, if the employee is required to leave the workplace after the notice period or if the employer terminated the worker without giving the leave due to him.

The court also ruled that the end-of-service gratuity mentioned in the fixed-term contract should be paid fully to the worker if he decides to resign after completing five years in service.

Similarly, employees whose service at least more than one year at the time of resignation are entitled to a-third of end-of-the-service benefits.

The court issued the principles in a case where the employee did not receive vacation allowance as the person had left work without serving a notice period.

A director of a company filed a lawsuit in the labour court in Dubai against his company, demanding the firm pay him dues of Dh765,000 – which included his annual leave allowance for the last two years and end-of-service gratuity.

The court ruled that the employee is eligible for cash allowance for balance annual leave for the last two years and that the person is eligible to receive the full amount of the end-of-service gratuity as he spent 6 years and 4 months in service at the company.

Earlier, the Court of First Instance had dismissed the case and the plaintiff appealed before the Court of Appeal, which ruled in his favour. The Appeals Court ordered the company to pay him Dh347,000 – in cash allowance for annual leave and full end-of-service gratuity.

The company then challenged the ruling before the Court of Cassation.

The court based its ruling to the provisions of Articles 78 and 79 of the Federal Labour Law No. 8 of 1980.

The court said in the reasons for its judgment that the employer had failed to prove that the plaintiff got his dues.

Dubai Health Authority announces mandatory health insurance cover roll-out plan

Dubai: Companies of varying sizes were issued deadlines on Tuesday by the Dubai Health Authority (DHA) to meet mandatory health insurance coverage laws starting in 2014.

Following a meeting between the DHA and health insurance companies in Dubai on Tuesday, a new timetable offers deadlines for three categories of companies based upon the number of employees on their payroll — larger companies with wider profit margins will be required to ensure complete insurance coverage sooner while smaller companies will have until mid-2016 to meet the call.

Companies with more than 1,000 employees, for example, must insure all of its workers by October 2014.

The new Health Insurance Law was approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Eisa Al Maidour, director-general of the DHA, said in a statement on Tuesday that the “health insurance mandate will provide a significant boost to the health insurance industry, it will attract investment in the health care sector and will generate healthy competition between providers as well as health facilities. This only means further improvement in the quality of health services as well as more health care options and competitive premium prices. The mandate will benefit all the stakeholders concerned — this includes insurance providers, health care facilities and most importantly, patients.

Aim of the law.Timetable offers deadlines for three types of companies based on the number of employees on their payroll
The new Health Insurance Law was approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Aim of the law
Our aim is to provide everyone in Dubai with access to essential health cover and to empower them by providing them with the right to choose their health provider within the private or public sector,” Al Maidour said.

According to the new timetable’s Phase 1, companies with more than 1,000 employees will be required by the end of October 2014 to “ensure every employee/dependent has insurance coverage by the stipulated deadline.”

In the second phase of the plan, companies with 100-999 employees must implement full health insurance coverage by July 2016.

Under a third phase, companies with less than 100 employees have until June 2016 to arrange for complete insurance coverage.

The DHA timetable demands that spouses and dependents as well as domestic workers must also be fully insured for basic health coverage by June 2016.

Visa renewal

When it goes into force, the new law will ensure that no work or residence visa will be renewed without a health insurance cover.

David Hedley, CEO of Mediclinic Middle East which runs the Mediclinic City and Welcare Hospitals, said earlier that this “is a giant leap forward for Dubai as everyone will have access to affordable and quality health care. I congratulate the government on its bold step and I am confident the insurance system will be implemented successfully.”

Dr Ahyam Refaat, founder of health care consultant Accumed PM, said in an earlier interview that the “long-awaited legislation is a step in the right direction. It will add to Dubai’s growth and public health and safety.”

Insurers need DHA permit

Meanwhile, the DHA said it will soon be issuing a list of approved health insurers who have applied for and received a permit to offer services in Dubai.

All health care providers will need to obtain a health insurance permit so that they are eligible to provide insurance cover in Dubai, Al Maidour said.

“In order to ensure we have the very best insurance companies on board, the DHA has laid out a set of criteria that all insurance companies need to adhere to, so that they are eligible to receive a health insurance permit, which is mandatory for companies that want to provide a health cover to anyone in Dubai.”

Dr Haider Al Yousuf, director of health, said: “Insurance companies interested in providing the essential health benefits [EHB] package to resident employees with salaries below Dh4,000 will have to undergo further qualifying criteria to ascertain their ability to provide an insurance package at an affordable rate. The premium for this package will range between Dh500-700 per person per year.”

He added that the package will cover all essential health services. “This package will cover emergency care, access to general physician [GP]/family physicians, referral to specialists, tests and investigations, surgical procedures and maternity care. All the necessary health requirements will be covered by this package. Therefore, once the mandatory health insurance is rolled out, people across the board will see the immediate benefits of the system.”

Cost for employers

Al Yousuf said that for employers, this will provide a minimum impact in terms of cost. “On average, health insurance costs 1.5 per cent of the monthly salary. For example, if an employer pays Dh10,000 per month in salaries, if he adds Dh150 per month, it covers the cost of health insurance. This is a minimum impact, adequate benefit plan; clearly, the benefits outweigh the minimum costs involved. The scheme protects both employers and employees from unforeseen health care costs that can arise out of an illness or an emergency.”

He said that as per the law, companies are liable to cover their employees only but the DHA encourages companies to cover the dependents of their employees as well. “It is a known fact that covering dependents of employees directly leads to greater employee satisfaction and better productivity.”