# Changin Jobs, EOSB and Bank Liabilities



## Lamplighter (Jul 20, 2010)

Hi there

I am shortly to change employment in the UAE, requiring cancellation of my existing residency before applying for new residency from the new employer.

The new employer is a start-up business.

I have a sizeable personal loan with my bank, arising from when I transferred all my previous UK liabilities to UAE, and obtained in the usual manner (ie Salary Transfer Letter from employer, salary paid into bank, loan repayment deducted each month before balance of salary made available). Previous company is "listed" with the bank as a credible employer, of course the start-up company is not. The loan is currently 18 months through a 48 month term, perfect repayment history.

I have discussed with my bank what happens during the visa changeover, and they have advised that in addition to the ususal loan repayment deductions from my final salary, they will also retain my entire EOSB (end of service benefit) payment and credit it against the loan (outstanding loan balance > EOSB).

I have asked the bank what my negotiating position is on this, as I am staying in the UAE and will continue the monthly loan repayments but I don't actually want to pay such a lump sum against my loan - I have other uses for this money during the period between employment!

Their response - not their problem! The EOSB payment is guaranteed to the bank through the salary transfer letter, so I think I'm ordained to not having these funds.

Are the bank correct in their assertion, and is there anything I can do to have some of the EOSB available to me? Could I, for instance, take a "cash advance" from the old employer, which would then be deducted from the EOSB before it is paid? I assume this wouldn't breach the Company's obligations to pay any termination benefits directly to the bank?

TIA for any advice/thoughts.
Rgds, Lamp
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Edit: apologies for the titular g-droppin' ;-)_


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