The reader is inquiring whether the bank will freeze their account after their residency visa is canceled.
Question:
I am leaving the UAE for good but have not closed my salary account as I am traveling home before receiving my full and final settlement. I will not be in the UAE when the company transfers the amount. Will this be a problem? Is it legal, as my residency visa will be canceled? Will they freeze my account?
Answer:
In the UAE, employers are required to pay end-of-service benefits to employees within 14 days of their last working day, as stipulated in Article 53 of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations. It states: “The employer shall pay the employee within 14 days after the expiry of the contract, all his salary and other entitlements provided for in this Decree-Law and its implementing resolutions, the contract, or the establishment bylaws.”
Based on UAE regulations, leaving the country after canceling your residency visa should not directly result in the freezing of your salary account. However, it is advisable to close your bank account if you do not intend to return to the UAE as a resident.
According to Article 9(b) of the UAE Central Bank Regulation No. 29/2011 on Regulations Regarding Bank Loans & Other Services Offered to Individual Customers,
“Commercial banks may open all types of accounts for their retail customers. In case a customer requests the closing of the account and termination of the business relationship with the bank, the bank should do that without imposing a penalty if the account opening date goes back more than one year. An account must be closed, and an appropriate certificate must be issued within a maximum of seven days from the date of submission of the application.”
Additionally, your account may be classified as dormant if it remains inactive for three years, per UAE Central Bank Circular No. 1/2020 on Dormant Accounts. Article 2 (1) (1) states:
“An individual/corporate savings or call or current account where there have been no transactions or non-financial actions for three years from the date of the last transaction, other than transactions initiated by the bank, and there has been no communication from the customer.”
Steps to Follow:
- Follow up with your employer: Ensure that your end-of-service benefits are paid into your UAE bank account as soon as possible.
- Withdraw funds: Once the benefits are credited, withdraw the amount from your salary account.
- Close your bank account: Close the account and obtain a bank account closure letter from the bank.
Applicable Laws:
- Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations
- UAE Central Bank Circular No. 1/2020 on Dormant Accounts
- UAE Central Bank Regulation No. 29/2011 on Regulations Regarding Bank Loans & Other Services Offered to Individual Customers
By following these steps, you can ensure that you receive your end-of-service benefits without any issues, even after leaving the UAE.
News Source: Khaleej Times
