Ministry of Labour is sympathetic to workers' rights



I bought a plane ticket at the Emirates Airline office in Abu Dhabi to attend a family funeral. While a more friendly customer service representative would have been appreciated, I was also disturbed to learn that I could not pay with my Visa Electron debit card. The unfriendly representative told me it was cash or credit card only, and I had to walk around the corner to use an ATM so I could pay by cash. I have never owned a credit card, as I believe it encourages irresponsible spending, and it was very disappointing to learn that Emirates Airline is complicit in the UAE's heavy reliance on credit cards. Is there any solid reason why Emirates don't allow the use of debit cards for over-the-counter transactions?

GL Abu Dhabi It's disappointing to hear of situations like this, so the queries were forwarded to Emirates Airlines for their comments. After investigation, they have advised as follows: "Our sales manager has tried to get in touch with GL using all her contact numbers, without success. We have upgraded her on her return flight, and Emirates' Airport Services staff will meet her in Sydney when she checks in. What had happened in our Abu Dhabi sales office was an individual mistake, and we have addressed this directly with the employee concerned. While we are sure that all of our sales staff are aware that Emirates accepts debit cards, we have since sent a reminder to all to avoid a repetition of this incident."

GL does not have international roaming on her phone, but I was able to contact her and inform her on the new arrangements. This gesture from Emirates is much appreciated and will make a difficult journey a little easier. I recently vacated my rented apartment and shifted to a new one. I kept the place clean for a year, and after seeing the apartment the landlord agreed to do a money transfer of the complete deposit amount to my bank account. It has been two weeks, and after repeated reminders via e-mails and phone the landlord is not responding. My contract has already expired and I have given the landlord the keys to the apartment. Is there a legal course I can take to get the deposit back from the landlord? SG Dubai

As the landlord has agreed that the deposit is to be refunded, there is no reason why he should delay payment. You are legally entitled to these funds, and if he refuses to pay you, can take your complaint to the police. You could employ a lawyer and take him to court, but the costs would be excessive given the amount to be recovered. I suggest, however, that you e-mail him pointing out that you are aware of your rights and will be taking legal action unless he makes payment in full within seven days. Remind him that you have the receipt for the deposit and the original rental contract, which specifies the amount. It's shameful for landlords to behave in this way.

I work for a company in Abu Dhabi and have not been paid my salary for four months. I want to know where I stand. Is it true that if you have not been paid for a certain amount of time that you can transfer your visa (if you find another job) without obtaining an No Objection Certificate (NOC) from your current employer? Also, is there a system over here to protect the rights of employees? JF Abu Dhabi

Your employer is breaking the law by not paying you; despite what some companies seem to think, this is not optional, regardless of circumstance. Sadly, I am hearing of more and more cases where companies are not paying their employees. The Ministry of Labour is particularly sympathetic and helpful in this kind of situation, and you have the right to take your case to them. The Ministry's helpline telephone number is 800655. Employees are not liable for court fees. Regarding the labour ban, it was announced in August 2009 that if an employee has not been paid for two months or more they have the right to change jobs without having to provide a NOC. Essentially, workers have the right to leave their employer without adhering to the required notice period if the company does not fulfil its commitments, as stipulated in the employment contract.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Write to her at keren@holbornassets.com Letters can also be sent to onyourside@thenational.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Tailors and retailers miss out on back-to-school rush

Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”

A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.

“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”

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