What To Know
- Banks in the UAE are also allowed not to charge a fee to the clients for account termination if the said account was opened more than a year prior to the termination according to UAE Central Bank Regulation No.
- It is also important to mention that if you overstay in the UAE and decide to leave the country for good, and that the residency visa has been cancelled, your salary account is not frozen.
- But before doing that and in order to make sure you have fully complied with all the legal requirements stated by the bank and the law, secure a closure letter from the bank.
It is also important to mention that if you overstay in the UAE and decide to leave the country for good, and that the residency visa has been cancelled, your salary account is not frozen. Closing any account that you no longer need or have no intentions of using again, especially a UAE bank account, is recommended.
Legal Considerations:
End-of-Service Benefits: Federal Decree Law No. 33 of 2021 dictated that end of service benefits which under article 53 is to be paid within 14 days from the last day worked.
Closing Bank Account: Banks in the UAE are also allowed not to charge a fee to the clients for account termination if the said account was opened more than a year prior to the termination according to UAE Central Bank Regulation No. 29/2011. It must be noted that the bank has to terminate the account for being active on your instructions and this has to be done within seven days.
Dormant Account: However, the accounts that haven’t received any sort of activity for a period of three years are now considered dormant, according to UAE Central Bank Circular No. 1/2020. However, this classification does not entail any form of interaction with individuals or organizations within the specified period.
Recommended Steps:
Follow Up with Employer: Check that your final emoluments are credited into your UAE bank on time once your tenure ends.
Withdraw Funds: If the benefits are credited, transfer the amount and attain a closure of the account. But before doing that and in order to make sure you have fully complied with all the legal requirements stated by the bank and the law, secure a closure letter from the bank.
Legal Compliance: Comply with all UAE employment relation and banking practice laws and policies relevant to the company and its operations.
If the above procedures are followed, one can easily arrange a seamless and properly wrapped up end to the financial lives in the UAE.
