# Move to Abu Dhabi or risk your house allowance



## Canuck_Sens (Nov 16, 2010)

I am not sure how many spotted this, but there is a "new rule" for Public employees that hold Abu Dhabi Visas living in other emirates.

The new rule pretty much says that if you hold office in Abu Dhabi and have therefore Abu Dhabi visa you will have to move to Abu Dhabi or you can kiss your allowance goodbye 

'Move to Abu Dhabi or risk your housing allowance' - The National


----------



## rsinner (Feb 3, 2009)

Been in the news for the last 3-4 days. It has been in the wings for quite some time. Companies like Etihad already implement it, so no biggie. 
Apart from the ulterior motive of stabilising the falling rents, I think it makes some sense - better than people being tired after a long and frankly hazardous commute. Of course AD should also try and develop so that people do not have to be "forced" to live in AD, but then that is wishing too much.


----------



## fcjb1970 (Apr 30, 2010)

Canuck_Sens said:


> I am not sure how many spotted this, but there is a "new rule" for Public employees that hold Abu Dhabi Visas living in other emirates.
> 
> The new rule pretty much says that if you hold office in Abu Dhabi and have therefore Abu Dhabi visa you will have to move to Abu Dhabi or you can kiss your allowance goodbye
> 
> 'Move to Abu Dhabi or risk your housing allowance' - The National


The rule is only for government or government owned companies, which in AD is a fair amount. But if you work for a private company you are would not be affected.

As with so many things here, lets see what happens when it gets time that they are going to enforce it. But I am glad I just changed jobs from a government to a private company


----------



## fcjb1970 (Apr 30, 2010)

rsinner said:


> Been in the news for the last 3-4 days. It has been in the wings for quite some time. Companies like Etihad already implement it, so no biggie.


No biggie, unless you happen to be one of the many who live in Dubai but work in Abu Dhabi. In that case it could be quite a biggie, besides having to actually live there (ugh) you are looking at at probably a 20% (or more) rent increase


----------



## Gavtek (Aug 23, 2009)

Not sure how they can legally enforce this assuming employee contract does not state that housing allowance is conditional on residence in Abu Dhabi.


----------



## Canuck_Sens (Nov 16, 2010)

fcjb1970 said:


> No biggie, unless you happen to be one of the many who live in Dubai but work in Abu Dhabi. In that case it could be quite a biggie, besides having to actually live there (ugh) you are looking at at probably a 20% (or more) rent increase


That's what I said in my post public employees.....


----------



## Canuck_Sens (Nov 16, 2010)

rsinner said:


> Been in the news for the last 3-4 days. It has been in the wings for quite some time. Companies like Etihad already implement it, so no biggie.
> Apart from the ulterior motive of stabilising the falling rents, I think it makes some sense - better than people being tired after a long and frankly hazardous commute. Of course AD should also try and develop so that people do not have to be "forced" to live in AD, but then that is wishing too much.


I think it is a biggie. Rents are expensive in AD although there are new developments. That affect people choices. I think people should have the freedom to choose where they want to live. If they want to commute and risk getting late to work and lose their jobs it is up to them. I think this is controlling too much.

Some live in Dubai because it is cheaper and the emirate offers a more vibrant life style.

I was transferred to Dubai and I am a public employee holding AD visa. I will have to change my visa and I don't like that.


----------



## Canuck_Sens (Nov 16, 2010)

Gavtek said:


> Not sure how they can legally enforce this assuming employee contract does not state that housing allowance is conditional on residence in Abu Dhabi.


My understanding is that once this is published on the gazette forget it you gotta do it. You can go to court but it is not worth it.

They will enforce through the public, semi public entities. These are public funds and hence subject to scrutiny on the new rules. Public entities are audited for compliance purposes. 

Probably several HR departments will set off the process to adjust residences. To make sure they are living in AD, housing allowance will be paid by the entity directly to the landlord for control purposes. It is like that for me already.


----------



## Gavtek (Aug 23, 2009)

It's worth it if your wife works in Dubai (and your kids are settled in school), are you going to force her to do the drive on Deathway E11 twice a day or are you going to demand that they honour the terms of your contract?

For most people, it's not simply just a case of "oh well, I'll just go throw some clothes in a suitcase and move apartment".

And for most low-mid level employees, the housing allowance isn't actually a housing allowance, it's just a mechanism to screw you out of some gratuity.


----------



## saraswat (Apr 28, 2012)

I came across the story on AB, and there is a pretty intense discussion going on in the comments section there, apparently the powers that be have incorporated a lead time of a year, so its not being implemented with immediate effect... per one commentator that gives enough time for the companies in question to amend the contracts and for the employees to figure out their situation (personally i don't think that's enough time at all) .. Really not sure how this plays out though, regarding implementing compliance, another commenter mentioned something about a rental contract registration service for AD (t-something) which will be tied into this, not familiar with AD.. Honestly, if they change the rules well then they change the rules, it sucks but its happened before in other instances...


----------



## Canuck_Sens (Nov 16, 2010)

Gavtek said:


> It's worth it if your wife works in Dubai (and your kids are settled in school), are you going to force her to do the drive on Deathway E11 twice a day or are you going to demand that they honour the terms of your contract?
> 
> For most people, it's not simply just a case of "oh well, I'll just go throw some clothes in a suitcase and move apartment".
> 
> And for most low-mid level employees, the housing allowance isn't actually a housing allowance, it's just a mechanism to screw you out of some gratuity.


Public entities usually absorb the costs of breaking the contract and signing a new lease. It is pretty common the amount of money that goes down the hole with transfers? All public funds wasted.


----------



## Gavtek (Aug 23, 2009)

saraswat said:


> per one commentator that gives enough time for the companies in question to amend the contracts


Don't you need agreement from both parties in order to amend a contract though?


----------



## fcjb1970 (Apr 30, 2010)

Gavtek said:


> Don't you need agreement from both parties in order to amend a contract though?


You seem to be getting caught up in how things work in the real world. Here if they decide to do it they will do it. Contracts are not worth the paper they are written on. Contracts signed by people with HH in front of their names get cancelled for nonsensical reasons, you think one signed by Joe Bob and the HR department will hold weight.

What they can do is reword the contract so instead of something being called housing allowance it becomes supplemental allowance, halas, problem solved


----------



## saraswat (Apr 28, 2012)

Gavtek said:


> Don't you need agreement from both parties in order to amend a contract though?


Yeah actually you do, which is why I am not sure how this is going to play out.. There is this whole over-arching legality clause that can be applied i guess, wherein the employers can simply state that this is not of their doing, and is a matter of published law which they have to abide by... and of course there is the ever-popular 'take it or leave it' scenario...


----------



## Canuck_Sens (Nov 16, 2010)

Gavtek said:


> Don't you need agreement from both parties in order to amend a contract though?


Nope. Once published in the gazette the contract becomes illegal. The law overrides the contract.

You cannot have a contract that goes against the federal law. This is a way to push things. As I said before usually public entities borne the costs if there is a need to break the contract.


----------



## Tropicana (Apr 29, 2010)

The ones who will be more affected are
Those with kids in Dubai schools
Those who bought places in Dubai using their allowance to pay the mortgage


----------



## Jager (May 26, 2012)

I'm wondering how many people this would actually effect ? Is it enough that it might results in Dubai rents falling if a significant number of people are quitting Dubai because they have to move to AD.


----------



## saraswat (Apr 28, 2012)

Jager said:


> I'm wondering how many people this would actually effect ? Is it enough that it might results in Dubai rents falling if a significant number of people are quitting Dubai because they have to move to AD.


Well getting any sort of reliable figures on this would be rather difficult I would assume (as is getting any sort of reliable market data here anyway).. But honestly, the new supply coming online this year and following on, the general nervousness set in by the recent sub-letting fiasco's, and state of the world economy leading to downward pressure on the local economy, would all have a more profound lowering impact on the rental market of Dubai. That is not to say this development will not have an effect, but not as profound as the other factors, imho...


----------



## m1key (Jun 29, 2011)

saraswat said:


> Well getting any sort of reliable figures on this would be rather difficult I would assume (as is getting any sort of reliable market data here anyway).. But honestly, the new supply coming online this year and following on, the general nervousness set in by the recent sub-letting fiasco's, and state of the world economy leading to downward pressure on the local economy, would all have a more profound lowering impact on the rental market of Dubai. That is not to say this development will not have an effect, but not as profound as the other factors, imho...


This is Dubai. No problems here, nothing to see. Move along please


----------



## Canuck_Sens (Nov 16, 2010)

Jager said:


> I'm wondering how many people this would actually effect ? Is it enough that it might results in Dubai rents falling if a significant number of people are quitting Dubai because they have to move to AD.


Veimagined would imagine that only applies to public servants or semi servants and there are more expats in the private sector right....so


----------



## fcjb1970 (Apr 30, 2010)

Canuck_Sens said:


> Veimagined would imagine that only applies to public servants or semi servants and there are more expats in the private sector right....so


In Abu Dhabi public/semi-public companies make up a very large number, as this includes all subsidiaries of government owned companies. Example Mubadala Development Company.


----------



## Sandscorpion (Jul 6, 2012)

Gavtek said:


> Not sure how they can legally enforce this assuming employee contract does not state that housing allowance is conditional on residence in Abu Dhabi.


From the Nation:

But Khaled Mustafa, a lawyer at the Abu Dhabi Judicial Department, said that as soon as the decree was released by the council, printed in the official gazette and then implemented, *it would affect everyone, regardless of their contracts.*

"If people want to object, claiming they did not sign up to this when they were appointed, *they would have to go to court," he said. "Which is not worth it. It is better just to move."*

'Move to Abu Dhabi or risk your housing allowance' - The National


----------



## Gavtek (Aug 23, 2009)

That should see the UAE drop a few places on the xxxxxx index then.

Abu Dhabi Judicial Department advises not to take the Government to court for breaching the terms and conditions of a legal contract because "it is not worth it".

I think we all know how things work here, but for them to come out and not only admit it, but almost taunt the people on the receiving end, that's pretty unusual.


----------



## Canuck_Sens (Nov 16, 2010)

Gavtek said:


> I think we all know how things work here, but for them to come out and not only admit it, but almost taunt the people on the receiving end, that's pretty unusual.


 When you want to change a practice the right way is by changing the law. Happens everywhere. And I am glad they are using the right path. And I don't think it is pretty unusual they offered one year of grace period too which is fair.

If the new law states that it is illegal and it is retroactive up to sometime then yes there is a right to set off.

Landlords not willing to negotiate can be taken to court for now allowing tenants to comply with new rules.


At the other poster. I do not think that expat government employees make up most of the jobs in the market. There is not a slight chance that this will affect the rental market in Dubai.


----------



## Gavtek (Aug 23, 2009)

Are you deliberately mis-reading what I say or are you quoting me and not responding to anything I say? I can't decide.

What's unusual is that they're effectively coming out and saying "we're going to breach your contract to suit our own agenda and there's not a thing you can do about it, take us to court, I dare you".

Furthermore, changing the law of the land just to sneakily get around a contract that was signed in good faith is far from being the right path.


----------



## Felixtoo2 (Jan 16, 2009)

Just read that the Abu Dhabi Govt estimate that this ridiculous edict will effect around 18,000 employees which is a fairly significant number of people to f### over. 
It's obviously designed as a way of boosting property prices, rental incomes and local spending. Disguising it as some sort of green plan or improvement in road safety in this part of the world is a compete oxymoron. It means you live in Al Ain and commute, as it's part of Abu Dhabi's Emirate but not Dubai which is actually closer. 
I feel very sorry for the families that this will effect, yet another FU to the expats that keep this country running.


----------

