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Queries about Contract terms

Queries about Contract terms

Old May 2nd 2013, 11:34 pm
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Default Queries about Contract terms

Hi All

Hubby has had his contract through for an Abu Dhabi role in the mechanical engineering sector.

There's a few things we could use clarification on before referring it back to the company (apologies if this has been asked before but can't find anything searching).

1. There is a clause that says:
Notwithstanding anything herein to the contrary, the Company, in its sole and absolute discretion, may elect to provide the Employee with accommodation (Corporate Housing) in lieu of payment of the Housing Allowance, in which case, no Housing Allowance will be payable to the Employee. For the avoidance of doubt, the Company, upon reasonable notice to the Employee, may require at any time that the Employee move to Corporate Housing and following such move the Housing Allowance will no longer be payable.

Is this a normal clause in UAE contracts? Our concern is that, if they remove the housing allowance once we have signed into a private rental it would remove much of the financial incentive.

2. Medical insurance is stated to be in accordance with UAE law. Though the contract states it's for the employee am I right in thinking the current law states family cover must be provided? (That is what was confirmed by HR, plus the fact that the level is 'better than most provide' but that is a separate issue to be queried with them).

3. For people who have had removal costs included in their contracts - is it usual for a company to cover all associated costs (ie will they just reimburse from an invoice from the shipping firm if it includes insurance or short term storage)? I know this will vary by company but an idea of what is usual would help.

4. It states a work mobile will be provided and that the employee is liable for all tax due - ignoring HMRC residency issues - is there tax payable on benefits in kind in UAE or are these also tax free?

Thanks in anticipation.

Abi
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Old May 8th 2013, 11:50 am
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Default Re: Queries about Contract terms

Originally Posted by abi31 View Post
Hi All

Hubby has had his contract through for an Abu Dhabi role in the mechanical engineering sector.

There's a few things we could use clarification on before referring it back to the company (apologies if this has been asked before but can't find anything searching).

1. There is a clause that says:
Notwithstanding anything herein to the contrary, the Company, in its sole and absolute discretion, may elect to provide the Employee with accommodation (Corporate Housing) in lieu of payment of the Housing Allowance, in which case, no Housing Allowance will be payable to the Employee. For the avoidance of doubt, the Company, upon reasonable notice to the Employee, may require at any time that the Employee move to Corporate Housing and following such move the Housing Allowance will no longer be payable.

Is this a normal clause in UAE contracts? Our concern is that, if they remove the housing allowance once we have signed into a private rental it would remove much of the financial incentive.

I doubt that is a normal clause, however if they won't remove it, see if you can have it modified to state the standard/size of corporate housing. Preference would be to have it removed.

2. Medical insurance is stated to be in accordance with UAE law. Though the contract states it's for the employee am I right in thinking the current law states family cover must be provided? (That is what was confirmed by HR, plus the fact that the level is 'better than most provide' but that is a separate issue to be queried with them).

Your Husband, you, and up to 3 kids under the age of 18 is law in Abu Dhabi (although not in Dubai interestingly enough)

3. For people who have had removal costs included in their contracts - is it usual for a company to cover all associated costs (ie will they just reimburse from an invoice from the shipping firm if it includes insurance or short term storage)? I know this will vary by company but an idea of what is usual would help.


I got an allowance of 2,500 USD, I took a couple of small items from home and used the money to partially furniture out place out here. If they are not mentioning the amount/limit, I would suggest that you get 3 quotes now on a "door to door" basis, and submit them to the company and confirm they will reimburse you (or ideally, get them to organize it on your behalf).


4. It states a work mobile will be provided and that the employee is liable for all tax due - ignoring HMRC residency issues - is there tax payable on benefits in kind in UAE or are these also tax free?

No tax on salaries in UAE - at present. This will likely be referring to any situation in your home country, strange that they put this in.

Thanks in anticipation.

Abi
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Old May 8th 2013, 1:36 pm
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Default Re: Queries about Contract terms

Thanks brains useful info

abi
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Old May 8th 2013, 4:34 pm
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Default Re: Queries about Contract terms

Originally Posted by abi31 View Post
3. For people who have had removal costs included in their contracts - is it usual for a company to cover all associated costs (ie will they just reimburse from an invoice from the shipping firm if it includes insurance or short term storage)? I know this will vary by company but an idea of what is usual would help.
hi Abi,

you're right, this really varies depending on the company. Typical offerings include:
A lump sum allowance - they will give you a fixed payment with which you make all your own arrangements, any extras you want on top are for your own payment and anything you decide to cut down on to save some is yours to keep.
A policy allowance - based on (usually) your circumstances you're given a volume allowance with any extras included specified (for example insurance, storage, an extra airfreight shipment, allowance for a car, crating for pictures etc) and anything that is excluded payable by yourself.

With lump sum you're usually free to invite whoever you want to quote for your move, they may advise 'approved suppliers' that they've pre-vetted, with allowances usually they will either have a single approved company who will handle your move or you'll be asked to see 3 suppliers who will quote on your move and then the company will decide who to use (a mix of price, service level or quality ratings will influence this). You may be able to suggest who your preference would be based on your own research or impressions of the company.

Have they given you any details of the policy yet?
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Old May 8th 2013, 7:11 pm
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Default Re: Queries about Contract terms

Originally Posted by kirstyp View Post
hi Abi,

you're right, this really varies depending on the company. Typical offerings include:
A lump sum allowance - they will give you a fixed payment with which you make all your own arrangements, any extras you want on top are for your own payment and anything you decide to cut down on to save some is yours to keep.
A policy allowance - based on (usually) your circumstances you're given a volume allowance with any extras included specified (for example insurance, storage, an extra airfreight shipment, allowance for a car, crating for pictures etc) and anything that is excluded payable by yourself.

With lump sum you're usually free to invite whoever you want to quote for your move, they may advise 'approved suppliers' that they've pre-vetted, with allowances usually they will either have a single approved company who will handle your move or you'll be asked to see 3 suppliers who will quote on your move and then the company will decide who to use (a mix of price, service level or quality ratings will influence this). You may be able to suggest who your preference would be based on your own research or impressions of the company.

Have they given you any details of the policy yet?
Thanks Kirsty. They have confirmed that they will pay for the transportation of a 20ft container - and they will pay the lowest amount of 3 quotes we provide. Therefore I need some expensive agents so I can ensure the quote they pay for is still a good one. Can anyone 'recommend' some very expensive shipping agents that I can get quotes off? And perhaps a couple of mid-priced ones that are reliable and recommended - I've looked at Crown and Pickfords so far but do suspect they may be on the more expensive side.

Thanks

Abi
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Old May 8th 2013, 7:42 pm
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Default Re: Queries about Contract terms

Originally Posted by abi31 View Post
Thanks Kirsty. They have confirmed that they will pay for the transportation of a 20ft container - and they will pay the lowest amount of 3 quotes we provide. Therefore I need some expensive agents so I can ensure the quote they pay for is still a good one. Can anyone 'recommend' some very expensive shipping agents that I can get quotes off? And perhaps a couple of mid-priced ones that are reliable and recommended - I've looked at Crown and Pickfords so far but do suspect they may be on the more expensive side.

Thanks

Abi
Check out this thread http://britishexpats.com/forum/showthread.php?t=783099 for some tips on finding three reputable companies.

Hope it helps?
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Old May 8th 2013, 7:55 pm
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Default Re: Queries about Contract terms

Thanks Kirsty, will take a look

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Old May 9th 2013, 6:07 am
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Default Re: Queries about Contract terms

Originally Posted by abi31 View Post
Thanks Kirsty. They have confirmed that they will pay for the transportation of a 20ft container - and they will pay the lowest amount of 3 quotes we provide. Therefore I need some expensive agents so I can ensure the quote they pay for is still a good one. Can anyone 'recommend' some very expensive shipping agents that I can get quotes off? And perhaps a couple of mid-priced ones that are reliable and recommended - I've looked at Crown and Pickfords so far but do suspect they may be on the more expensive side.

Thanks

Abi
Shore Porters Society, they'll be bloody expensive. Running since 1498!
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Old May 9th 2013, 5:34 pm
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Default Re: Queries about Contract terms

Originally Posted by Brains1983 View Post
Shore Porters Society, they'll be bloody expensive. Running since 1498!
Their boat discovered America!!
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