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Proof of dismissal due to "COVID-19" a condition for lease termination
23 September 2020

Proof of dismissal due to "COVID-19" a condition for lease termination

Judge Abdulqader Mousa, Chairman of Rental Disputes Center, said that the official proof for the dismissal of the employee, due to the Corona pandemic, is a must to justify the request to terminate the lease and end the contractual relationship between the two parties.

Briefing the Arabic daily “Al-Bayan” on its economy section, Chairman of Rental Disputes Center, the judicial arm of the Dubai Land Department, explained that the RDC witnessed great sympathy from quite a number of real estate property owners towards the distressed tenants, due to the humanitarian conditions suffered by many of them as a result of the pandemic. 

 

Official Letter

Addressing the query on how the RDC deals with proofs of termination of service owing to Coronavirus disease (COVID-19) if employees do not produce a letter from their employers, he said: “A tenant wishing to terminate the lease must include among the lawsuit documents an official letter signed and stamped by the company, explaining that the employer ended or suspended the tenant’s services because of (COVID-19).

The RDC Chairman added, “the Dubai Rental Disputes Center issued a ruling to terminate a leasehold relationship in favour of a tenant who was affected by the consequences of the Coronavirus. His service was terminated by his employer, and he could no longer continue to stay in the leased premises, or pay the rent.

The RDC judicial committee ruled to terminate the lease from the date of the final judgement, and obligate the landlord to give the cheques back to the tenant, or pay their amounts, if they were cashed, from the date on which the judgment becomes final. The verdict to terminate the lease was based on the Civil Transactions Law because of an unforeseen reason; the Paragraph (1), Article (794) of the aforementioned law stipulates that it shall be permissible for either of the contracting parties, for some unforeseen reason connected with him, to require that the contract of hire be terminated."

Instant Approach

On how the RDC deals with leasehold-related complaints posted on social media, Judge Abdulqader Mousa said: "The RDC immediately deals with all complaints received through the news, social media channels, and in a way that does not adversely affect services, which touch the necessary needs of the owners and tenants.

The team assigned by the RDC follows up on these complaints, which are posted on its social media accounts. "As the RDC is in direct contact with landlords and tenants, and it is, therefore, able to describe the relationship between the parties and the challenges they face due to the pandemic", he added.

“The judiciary deals with both parties with equity on one hand, and on the other what we witness in the UAE is a sign of social harmony by all segments of society in this crisis, everyone recognizing the value of solidarity, and contributing positively in the face of challenges. The RDC witnessed great sympathy from quite a number of real estate property owners towards the distressed tenants, because of the circumstances that affected many", the RDC Chairman concluded.