Sponsorship and the law
 

Hi guys, wondering if you can help me with this question someone sent me please.

"If a company sponsors an employee under UAE labour law, does the employer company take on any risk of the employee's actions for such things as crime, incurring debt and not repaying it, etc?"

Re: Sponsorship and the law
 

"Take on the risk"? In what way? You can hardly put the company on trial in a court of law if an employee murders someone.

I don't follow - sorry, maybe someone else will help you.

Re: Sponsorship and the law
 

Not sure, I'll ask some more questions of the person who sent me the question and maybe try and get some more detail. I think it's maybe to do with someone skipping with bad debt and whether their employer as their sponsor is responsible for it.

Re: Sponsorship and the law
 

at one time if the company stood as guarantor yes then they would be responsible for the debt if the employee did a runner, not sure how it stands now though. Normally if an employee owes the bank money it can be deducted from their gratuity and final pay as the company will notify the bank etc but we know that isn't happening these days.

Re: Sponsorship and the law
 

when you go to the bank for a loan, they have to get a letter from the company etc, but usually that letter just states salary and that they are employed by said company, they dont usually become a guarantor, so no the company is not liable for repayment etc, usually the bank will withhold money from the final salary to pay back loans etc, or they will cash the security cheque and that will go towards the outstanding debt if they cash the security cheque and it bounces (3 times) they can then lodge a case against them. if the person is new and hasnt had much service so doesnt get a big gratituty if they company has paid them it, then there may not be enough to cover the debt etc, its different if you have worked in this country a good few years etc. more specific details are required to be able to answer.

Re: Sponsorship and the law
 

Thanks for your replies guys.