Legal Issues

Yes, upon the completion of your labor contract, you are entitled to a one-way economy air ticket to your home country, provided you are returning there and not taking up new employment in the UAE. This is a legal requirement under the UAE Labour Law, and your employer is obligated to pay for this repatriation flight. 

An absconding case in the UAE occurs when an employee leaves their job without notice and is absent from work for seven consecutive days, leading their employer to file a report with the Ministry of Human Resources and Emiratisation (MOHRE). 

This can also happen if a person overstays their visa or fails to follow visa cancellation procedures. Consequences include potential legal penalties, fines, and a ban from re-entering the UAE. 

Bounced Cheque and its Legal Consequences in the UAE

 Cheques are the most common negotiable instrument used by businessmen and common people as security for commercial and individual transactions. Taking note of the frequency of usage of cheques in both business and individual transactions, the UAE Government considers a bounced cheque as a serious offence which would invite both criminal and civil actions against the defaulters.

What is a Bounced Cheque?

Article 483 of the UAE Federal Law No. (18) of 1993 Commercial Transactions Law defines a cheque as “a commercial paper containing an order issued by the drawer upon a bank (the drawee) to pay in the date indicated therein, as being the date of issue, a specifying sum of money to the order of a third person being the beneficiary or the payee.”

As per the above provision, there are three parties to the cheque such as, (i) Drawer, (ii) Drawee and (iii) Payee. A Drawer is a person who provides a signed cheque wherein he orders the bank to pay the sum to the payee. A drawee is the bank from which the cheque is drawn. The payee is the beneficiary to whom the bank should pay the amount upon presentation of the cheque.

A cheque can be bounced for many reasons, such as:

• Insufficient funds in drawer’s account.
• Closure of drawer’s bank account.
• Stop payment instruction to the bank (i.e., when the drawer instructs the bank to withhold payment).
• Incorrect signature/overwriting (i.e., a defective cheque).

What Happens When a Cheque is Bounced?

In the event of dishonour, the bank must issue a return memo to the payee mentioning why the cheque was bounced. The original cheque is also returned to the payee.

Legal Implications of Bounced Cheque

As explained below, a payee can file a civil lawsuit and initiate criminal proceedings against the drawer in the UAE. In this regard, it should be noted that a bounced cheque used to be a severe criminal offence in the UAE. However, the recent amendments in the new cheque bounce law in UAE have decriminalised bounced cheques under certain circumstances. The payee can also file a civil suit against the drawer to recover the cheque amount.

New Cheque Bounce Law in UAE

Federal Decree Law No. (50) of 2022 issuing the Commercial Transactions Law was enacted on 2 January 2022 and has brought about significant changes related to cheque bounce cases. Some of the key changes are discussed below.

Decriminalisation

Before the new law, the payee could file a criminal complaint before the police, leading to a travel ban and arrest warrant for the issuer of a cheque that was bounced/returned due to insufficient funds.

However, under the new law, a criminal case can no longer be filed for a bounced cheque offense if the cheque is returned due to insufficient funds.

Bounced Cheque as an Execution Deed

The payee can now straightaway approach the Execution Division of UAE Courts and request an order for payment if the cheque has been returned due to insufficient funds. The new law provides that a cheque that is returned due to “insufficient balance” shall be considered an execution deed, and the payee can directly file a civil execution case against the issuer of the cheque.

If the issuer raises no valid objection, the Execution Judge can order the issuer of the returned cheque to pay the cheque amount within 15 days. If the issuer does not do so, then the Execution Judge can order a travel ban and arrest warrant for the issuer.

Partial Payment

The banks are now obligated to make a partial payment to the payee when the cheque is presented for payment, as long as an account balance is available to satisfy the payee’s claim partly. The payee is entitled to file a civil case for the remaining amount.

Imprisonment and Penalties

In cases where the drawer closes his account or intentionally writes or signs a cheque that prevents it from being encashed, the drawer shall be punished with imprisonment for not less than six months and not exceeding two years or a fine of not less than 10% of the value of the cheque, subject to a minimum of AED 5,000.

However, in the above case, the criminal case will be stopped if the cheque value is paid before execution procedures are started.

Forging or counterfeiting a cheque or attributing it to a third party by changing details through addition, deletion, or other means is punishable by imprisonment for no less than one year in addition to a penalty of no less than AED 20,000 (and not exceeding AED 100,000).

Summary Proceedings

One option available to the payee in case of a cheque returned due to account closure or defect in the cheque or stop payment instruction is to file summary proceedings based on the bounced cheque. Unlike other civil suits, the creditor in a summary suit can request immediate payment of the debt (after serving legal notice on the debtor) in cases of admitted debt.

The main advantage of the summary procedure is that it can be completed within a few weeks. However, whether a summary procedure can be filed largely depends on the facts and circumstances of the case.

The Time Limit for Filing Legal Proceedings

The time limit for filing legal proceedings depends on the cheque date. If the payee wants to file a case in the Execution Division of the Court, the payee must do so within two years from the expiry of the deadline for presenting the cheque.

A Word of Caution!

Although the amendments have provided respite to the drawer of the cheque, the drawer should not get a false sense of comfort in thinking a criminal case would not be filed no matter how many cheques are returned due to insufficient funds. This is because, as per UAE Central Bank regulations, banks are obligated to close any customer’s account if four cheques get returned within one year due to insufficient funds.

In such a scenario, if a cheque is presented for payment after the account has been closed, the bank would return the cheque stating the reason as closure of account in return slip.

This would entitle the payee to file a criminal complaint against the cheque drawer. So, the drawer whose one or two cheques bounce due to a short-term reduction in cash flow should take comfort in the fact that a criminal case will not be filed against him.

However, a drawer whose cheque bounces because of a general reduction in income due to loss of job or company revenue should take heed as it is likely that many of his/her cheques would start bouncing in a short period (e.g., cheques issued to pay monthly instalments of earlier purchase).

He should not wait for the cheques to keep bouncing, leading to an account closure. Instead, he should approach the payees/beneficiaries and seek to negotiate to restructure his loan or some form of settlement.

In the UAE, a “credit card case” typically refers to the legal and financial consequences of defaulting on credit card payments, which is a civil matter but can lead to serious legal action, including travel bans and civil court cases. 

Under Article 4(4) of the Personal Loan Agreement format approved by the UAE Central Bank, if you miss three consecutive or six non-consecutive monthly payments, it’s considered a default.

Once that happens, your entire credit card balance becomes due immediately not just the missed Installments. The bank doesn’t need to give you advance notice or obtain a court order to demand full repayment.

This rule also applies because a credit card is treated as a form of personal loan facility in the UAE. When you sign your credit card agreement, it’s governed by the same framework that covers personal loans.

In some cases , when you apply for a credit card, the bank often asks for a security cheque that covers your card limit. If you default, that cheque can be deposited for collection.

If the cheque bounces — usually because there aren’t enough funds — the bank can file an execution case under Federal Decree-Law No. 50 of 2022 (Commercial Transactions Law).

If the outstanding balance is more than Dh10,000, the bank can also request a travel ban from the court under Article 324 of Federal Decree-Law No. 42 of 2022 (Civil Procedure Code).

This ban prevents you from leaving the UAE until your debt is cleared or settled.

The court may require the creditor to provide a financial guarantee to cover any potential harm to the debtor if the ban is later found to be unjustified. This is by Article 324 of Federal Decree-Law No. 42 of 2022, promulgating the Civil Procedure Code.

If you’re struggling to pay, talk to your bank early. Most banks prefer helping you find a solution rather than going through legal action.

If your situation is serious, you can also consider applying under the UAE Insolvency Law, which lets individuals restructure debts legally without criminal penalties.

The bank isn’t required to approve your request, but showing willingness to cooperate can help prevent escalation.

Employers and employees can use this service to register their labor claims in the event that one of the parties breaches their contractual obligations.

Did your employer refuse to pay your salary? Were you fired unfairly? MOHRE (Ministry of Human Resources & Emiratisation) helps workers in Dubai solve problems with employers.

But filing a complaint can be confusing. This guide explains how to file a MOHRE complaint in simple steps.

You can complain to MOHRE for:
✅ Unpaid salary (even if you quit or got fired)
✅ Wrongful termination (being fired without reason)
✅ No work permit or visa issues
✅ Too many working hours, no breaks
✅ Employer refusing to give you your passport

NOTE: MOHRE complaints are FREE and usually solved in 2-4 weeks.

Step 1 : Try Solving It with Your Employer First Politely ask for what you’re owed (in WhatsApp

or email). If they refuse, move to Step 2.

Step 2 : Call MOHRE (Dial 800 84 – LABOUR CASE AND ADVISORY CENTER), Explain your problem to them and They will tell you what documents to prepare.

Step 3 : Submit Complaint through MOHRE Mobile App, Go to MOHRE’s Mobile App – Click “Services” → “Labor Complaints” Fill the form and upload documents.

Step 4 : Wait for MOHRE’s Decision

MOHRE will call you and your employer for a solution.

If the employer refuses, MOHRE may take legal action.

Don’t worry! You still have options:

1. Re-file with better evidence.
2. Go to Dubai Labour Court (takes longer but stronger)

Important Information: Always keep proof.

• Screenshots of messages
• Bank statements (if salary was paid before)
• Emails or letters from employer